Stock Market Tips for Monday: 5 Hot Stocks to Buy Now as Experts Predict a Bullish Trend

Stock Market Update for Monday, August 26

The Indian stock market ended last week on a positive note, with the Nifty 50 index closing at 24,823, up 1.15% or 283 points. The BSE Sensex also gained 0.80% or 650 points to close at 81,086. The Bank Nifty index rose by 0.83% to end at 50,933. The broader market performed even better, with the Small-cap index up 3.40% and the Mid-cap index rising 1.95%.

Today’s Trade Setup

Nagaraj Shetti, a Senior Technical Research Analyst at HDFC Securities, says, “Nifty remains choppy but with a positive trend. It could rise to 25,000-25,100 levels soon, with support at 24,650.”

Hrishikesh Yedve from Asit C Mehta notes, “Bank Nifty faced resistance and closed lower at 50,933. It formed a bullish pattern on the weekly chart, suggesting strength. If it stays above 50,790, buying on dips is a good strategy. Resistance is at 51,200, and if it breaks this level, it could go up to 51,500-51,800.”

US Fed Rate Cut Buzz

Naveen Kulkarni, CIO at Axis Securities PMS, expects the positive trend to continue. He believes the US Federal Reserve may cut interest rates soon, possibly at their next meeting in September. This could help maintain market optimism, but the speed of rate cuts depends on economic data. Although the chances of a US recession are low, a high-interest-rate environment might end soon, but don’t expect rates to drop too low either.

Top Stocks to Buy Today

Experts Sumeet Bagadia of Choice Broking and Ganesh Dongre of Anand Rathi recommend these stocks:

1. Welspun Enterprises
   • Buy at: ₹601.25
   • Target: ₹633
   • Stop Loss: ₹580
   • Reason: Stock is at an all-time high with strong momentum, suggesting further gains.
     
2. TVS Electronics
   • Buy at: ₹445.90
   • Target: ₹469
   • Stop Loss: ₹430
   • Reason: Stock shows a bullish trend with a new weekly high, indicating upward movement.
     
3. Swan Energy
   • Buy at: ₹700
   • Target: ₹745
   • Stop Loss: ₹680
   • Reason: A bullish reversal pattern suggests potential gains up to ₹745.
     
4. Tata Motors
   • Buy at: ₹1088
   • Target: ₹1130
   • Stop Loss: ₹1065
   • Reason: Breakout at ₹1088 with strong buying momentum suggests further rise.
     
5. Jindal Steel
   • Buy at: ₹960
   • Target: ₹990
   • Stop Loss: ₹940
   • Reason: Bullish rounding bottom pattern indicates a potential upward trend.

Investors are advised to watch these stocks closely for potential buying opportunities.