On Friday, October 4, the Indian stock market saw its fifth straight day of losses due to rising tensions in the Middle East, particularly the Israel-Iran conflict. The Nifty 50 index had its worst week in over two years, falling by 235 points to close at 25,014. The BSE Sensex also dropped by 808 points, ending at 81,688, while the Nifty Bank index lost 288 points, finishing at 51,556. Trading volumes were down 7% on the NSE, and the Mid-cap index fell more than the Nifty.
Sumeet Bagadia’s stock picks for Monday, October 7
Sumeet Bagadia, Executive Director at Choice Broking, shared his thoughts on the Indian stock market, saying it has turned very bearish after the major drop in the Nifty 50 index this year. He pointed out that the Nifty 50 has important support at around 24,300 to 24,250, while the Nifty Bank index looks weak after falling below 51,900, with the next support levels between 49,800 and 49,700.
Here are the three stocks Bagadia recommends buying on Monday:
1. Poonawalla Fincorp
- Buy at ₹395, target ₹425, stop loss ₹380
Poonawalla Fincorp shares are trading at ₹394.95 and have bounced back from support levels. The stock recently broke out of a downtrend and is now holding steady, which shows strength. If the stock stays above ₹400, it could continue moving up towards ₹425. The RSI indicator is neutral, but Poonawalla Fincorp is close to its 20-day and 50-day moving averages, suggesting it could gain more momentum if it stays above these levels.
2. BEML
- Buy at ₹3664, target ₹3960, stop loss ₹3525
BEML is currently trading at ₹3664 and is in a consolidation phase near its support levels. The stock is showing signs of a reversal from support, and a hammer candle on the chart suggests it may rise. If BEML stays above ₹3720, it could reach ₹3960. The RSI is neutral, and BEML is trading near its long-term moving average, which strengthens the buying opportunity if it holds above resistance.
3. Zomato
- Buy at ₹275.30, target ₹300, stop loss ₹263
Zomato is in a long-term uptrend, trading at ₹275.30 after pulling back from record highs. The stock has been forming higher highs and lows, indicating a bullish trend. A strong bullish candle has formed near support, suggesting the uptrend could continue. If Zomato stays above ₹280, it could reach new highs. The RSI supports this view, and the stock is holding above its 20-day and 50-day moving averages.
These stocks present buying opportunities based on their technical setups, but investors should apply proper risk management strategies, like using stop losses, to protect against any potential downturns.
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