Sumeet Bagadia recommends Tata Steel, Reliance Industries and Bajaj Finance for buying on Monday
Sumeet Bagadia, Executive Director at Choice Broking, has recommended three stocks for buying on Monday amid weak market bias on Dalal Street. He noted that the Nifty 50 index is trading below its 20-day, 50-day, 100-day and 200-day EMAs, reflecting a cautious-to-bearish setup. The index has formed a small bearish candlestick on the daily chart, indicating hesitation at higher levels and continued selling pressure near resistance.
Bagadia identified immediate support for Nifty 50 in the 23,750–23,800 zone, with 24,000–24,050 acting as a crucial resistance area. A sustained move above 24,050 could improve the near-term structure, while a break below 23,750 may trigger further downside. The RSI stood at 38.37, showing weak momentum but remaining above oversold levels, and India VIX was at 10.68, indicating subdued volatility.
In the derivatives segment, major Call Open Interest was concentrated around the 24,000–24,100 strikes, suggesting strong resistance, while significant Put Open Interest was seen around the 23,800–23,900 strikes, indicating immediate support at current levels.
Regarding individual stocks, Bagadia said Tata Steel is attempting to recover after a short-term consolidation following its May–June downtrend. The stock is stabilising around its key moving-average zone, interacting closely with the 20-day, 50-day and 100-day EMAs, though it remains below the 100-day EMA, indicating overhead resistance.
Reliance Industries is showing early signs of a bullish reversal as it attempts to break above a descending trendline that has capped upside since June. The stock has reclaimed its 20-day and 50-day EMAs, signalling improving buying interest and a positive shift in short-term momentum.
Bajaj Finance is in a short-term pullback, having closed at around ₹1,060.50. The price has slipped below the 20-day EMA near ₹1,073.30 and is testing an important support zone around the 50-day EMA at ₹1,053.50. This area could act as a demand zone and provide a base for recovery. A sustained move above the 20-day EMA after a reversal from the 50-day EMA would strengthen the short-term bullish setup.
The recommendations are for educational purposes only, and investors are advised to consult certified financial experts before making investment decisions.
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