Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — 10 February 2025

Buy or sell stocks: Following weak global market sentiments, the Indian stock market ended lower for the third straight session on Friday. The Nifty 50 index ended 43 points lower at 23,559, the BSE Sensex finished 197 points down at 77,860, whereas the Bank Nifty index corrected 223 points and closed at 50,158. In the broad market, the Small-cap index lost 0.68 per cent, while the Middle-cap index finished marginally higher.

Sumeet Bagadia’s stock recommendations

Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market trades sideways in the 23,400 to 23,800 range. Bullish or bearish trends can be assumed on the breakage of either side of the range. The Choice Broking expert said the frontline index is facing a substantial hurdle at the 23,800 mark, and the index once again failed to break above this resistance. However, he maintained the 50-stock index and managed to sustain support of over 23,300. He advised investors to look at those stocks that are looking strong on the technical chart.

Regarding stocks to buy on Monday, Sumeet Bagadia recommended these three buy or sell stocks: HDFC Life, UltraTech Cement, and Tech Mahindra.

Stocks to buy today

1] HDFC Life: Buy at ₹635.70, target ₹700, stop loss ₹605.

HDFC Life’s share price is currently trading at ₹635.70, consolidating in a range near support zones after witnessing a 23% decline from higher levels. The stock shows signs of accumulation, suggesting buyers are gradually stepping in at these levels. Additionally, it has formed a strong base, indicating a potential reversal if momentum builds further. A breakout above ₹650 could confirm a shift in trend, opening the doors for an upside move towards ₹700.

The Relative Strength Index (RSI) is at 55.63, trading in a narrow range with an upward bias, indicating improving sentiment. The stock has bounced from support levels and successfully moved above its short-term and medium-term EMAs. If it breaches its long-term EMA, the bullish outlook could further strengthen.

Buying HDFC Life at ₹635.70 at current levels looks promising, with a stop-loss at ₹605 to manage risk. A decisive move above ₹650 could accelerate the uptrend, making the stock attractive for higher targets of ₹700. Traders should watch for price action near the resistance zone to confirm further momentum.

2] UltraTech Cement: Buy at ₹11640.60, target ₹12800, stop loss ₹11050.

UltraTech Cement’s share price currently trades at ₹11,640.60, consolidating within a wide trading range after reaching a record high. Despite the consolidation, the stock remains in a long-term uptrend, consistently forming higher highs and higher lows on the charts. The recent bounce from the demand zone indicates a sign of reversal, suggesting renewed buying interest at lower levels.

The stock has formed a strong bullish candle, supported by consistent trading volumes, reinforcing the possibility of further upside momentum. If UltraTech Cement’s share sustains above ₹12,000, it could trigger a fresh rally towards the next target of ₹12,800. The Relative Strength Index (RSI) is also at 58.84, trending upward, signalling to strengthen bullish momentum.

Moreover, the stock trades above all key moving averages, including the short-term, medium-term, and long-term EMAs, indicating a strong underlying trend. The technical structure remains positive, favouring a continuation of the bullish bias if key support levels hold.

Considering the strong trend and bullish indicators, buying UltraTech Cement shares at ₹11,640.60 presents a promising opportunity, with a stop-loss set at ₹11,050 to manage risk. A decisive breakout and sustained move above ₹12,000 would confirm further upside potential, making it attractive for higher targets of ₹12,800 in the near term.

3] Tech Mahindra: Buy at ₹1692.10, target ₹1875, stop loss ₹1600.

Tech Mahindra share is trading at ₹1,692.10, consolidating near the demand zone after witnessing a higher-level throwback. Despite this short-term pullback, the stock remains in a long-term uptrend, maintaining its bullish structure. The ongoing consolidation suggests accumulation and the stock is now on the verge of a breakout, backed by consistent trading volumes, which signals increasing investor interest.

A decisive move above ₹1,725 could confirm the breakout, potentially triggering an upside rally towards ₹1,875. Additionally, the Relative Strength Index (RSI) is at 52.72, trending upward, which reflects improving momentum. The stock has bounced from the demand zone and has surpassed its short-term and medium-term EMAs, further reinforcing a positive outlook. A break above the consolidation range could shift sentiment further in favour of buyers.

Given the current technical setup, buying Tech Mahindra shares at ₹1,692.10 presents a favourable risk-reward opportunity, with a stop-loss set at ₹1,600 to manage downside risk. Traders should watch for a strong breakout above ₹1,725, which could trigger further upside momentum. Overall, TECHM remains well-positioned for potential gains, and if the bullish breakout materializes, the stock could rally towards ₹1,875 in the near term.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.