Top 3 Stock Picks for Monday: Buy Divi’s Labs, HCL Tech, and Hindalco, Says Sumeet Bagadia

Indian stock markets saw little change last Friday, with the Nifty 50 index ending 34 points lower at 24,964, staying below the key 25,000 level. The BSE Sensex dropped by 230 points to close at 81,381, while the Nifty Bank index lost 358 points, finishing at 51,172. However, the small-cap and mid-cap indices both gained 0.44% during the day.

Stock Picks for Monday:

Sumeet Bagadia, Executive Director at Choice Broking, suggests that the Indian stock market is in a cautious phase, with Nifty 50 trading within a tight range of 24,900 to 25,300. He believes that a bullish or bearish trend could emerge depending on which side of this range breaks. If Nifty moves outside this range, we could see a 200-point swing either way, according to Bagadia.

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For Monday, Sumeet Bagadia recommends buying Divi’s Laboratories, HCL Technologies, and Hindalco Industries.

Sumeet Bagadia’s Stock Recommendations:

1. Divi’s Laboratories: Buy at ₹6142.25, Target ₹6555, Stop Loss ₹5925

Divi’s Laboratories has been showing strength in recent months, moving out of a consolidation phase between ₹5300 to ₹5450. The stock is now targeting ₹6555, which could lead to a sharp increase. Divi’s Labs is trading above its 20-day, 50-day, and 100-day Exponential Moving Averages (EMA), indicating a bullish trend. Trading volume is also increasing, and the stock’s short-term Volume Weighted Average Price (VWAP) of ₹6085 supports a positive outlook.

Investors who bought earlier may want to consider taking partial profits now while trailing their stop loss to ₹5925 to protect gains. For new buyers, entering around ₹6060 with a stop loss at ₹5925 is recommended for managing risk.

2. HCL Technologies: Buy at ₹1839.65, Target ₹1950, Stop Loss ₹1777

HCL Technologies has shown strong performance recently, trading at ₹1839.65. The stock has broken out of a consolidation range between ₹1775 and ₹1815, forming a bullish engulfing pattern on the weekly charts. It is trading comfortably above its 20-day, 50-day, and 200-day EMAs, reflecting a solid uptrend. The stock’s Relative Strength Index (RSI) is also rising, currently at 65, signaling positive momentum.

With a target of ₹1950 in sight, investors should consider trailing their stop loss near ₹1777 to protect gains. The technical indicators suggest further upward potential, making HCL Tech a good buy at current levels.

3. Hindalco Industries: Buy at ₹747.35, Target ₹800, Stop Loss ₹720

Hindalco is trading at ₹747.35 and has been on an uptrend from its support level of around ₹715. The stock is showing strength as it trades above its 20-day, 50-day, and 200-day EMAs, indicating positive momentum. A breakout above the ₹750 resistance level, backed by strong trading volumes, suggests the stock could reach its next target of ₹800.

Investors should use a trailing stop loss near ₹720 to safeguard profits. For those looking to buy now, Hindalco is a solid pick with a target of ₹800, but it’s important to keep a strict stop loss at ₹720 to manage risk.

These stock picks reflect strong technical setups and potential for gains, according to Sumeet Bagadia.