Buy or Sell: Sumeet Bagadia’s Stock Recommendations for Monday, December 2, 2024
Despite the US markets being closed for a stock market holiday, Dalal Street witnessed robust buying activity during the last trading session of November 2024. This momentum drove key indices to close significantly higher. The Nifty 50 index ended 208 points higher at 24,122, the BSE Sensex surged 699 points to 79,743, and the Nifty Bank index added 117 points to close at 52,023.
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Additionally, the Nifty Mid-cap 100 and Small-cap 100 indices marked their sixth consecutive day of gains, rising 0.16% and 0.75%, respectively. The market breadth continued to favor advances over declines, with an advance-decline ratio of 1.44 on the BSE. Notably, Adani group stocks, including Adani Green Energy, Adani Energy Solutions, and Adani Total Gas, soared up to 23%, following their inclusion in the Futures and Options (F&O) segment on November 29, 2024.
Sumeet Bagadia’s Stock Market Insights
Sumeet Bagadia, Executive Director at Choice Broking, highlighted that the overall bias in the Indian stock market has turned positive as the Nifty 50 index has regained support above the 21-day Exponential Moving Average (DEMA) of 24,050. However, he cautioned that the index faces a significant resistance level at 24,400. If the index breaches its current support, it could potentially fall to the 23,650–23,550 range. Given this scenario, Bagadia advises traders to adopt a cautious, stock-specific strategy rather than making bulk trades.
Below are three stock recommendations from Bagadia for Monday, December 2, 2024:
1. Mahindra & Mahindra (M&M)
- Buy Price: ₹2,966.10
- Target Price: ₹3,250
- Stop Loss: ₹2,850
Mahindra & Mahindra’s stock is exhibiting strong bullish momentum, currently trading at ₹2,966.10, significantly above its key support levels around ₹2,800. This price is near its 50-day EMA, suggesting resilience in the medium term. Additionally, the stock is trading above its 20-day, 50-day, and 200-day EMAs, reinforcing its positive technical outlook.
A breakthrough above the ₹3,000 resistance level, supported by high trading volumes, could propel the stock toward its next target of ₹3,150. Investors who entered at lower levels should consider trailing their stop loss to ₹2,850 to secure profits while aiming for the ₹3,250 mark.
The Relative Strength Index (RSI) is currently at 52.77, indicating positive momentum. For fresh buyers, entering at the current market price (CMP) with a target of ₹3,250 and a stop loss of ₹2,850 offers a favorable risk-reward ratio.
2. Tata Consumer Products
- Buy Price: ₹957.80
- Target Price: ₹1,030
- Stop Loss: ₹920
Tata Consumer Products is poised for potential upward movement after a recent pullback. The stock is trading at ₹957.80, just below its 20-day and 50-day EMAs. Overcoming these resistance levels will be key to confirming a strong recovery. A breakout above these moving averages could trigger a bullish rally toward ₹1,030.
The slight increase in trading volumes signals growing interest from investors. If the stock sustains its price above these critical EMAs, it will solidify the bullish outlook. New investors may consider buying near ₹950, setting a stop loss at ₹920 to manage downside risks effectively. Additionally, a breakout above ₹970 would further strengthen the case for gains, making the ₹1,030 target achievable in the short term.
3. Oil and Natural Gas Corporation (ONGC)
- Buy Price: ₹256.70
- Target Price: ₹270
- Stop Loss: ₹245
ONGC’s share price is currently showing signs of recovery, trading at ₹256.70 after bouncing back from its recent support level at ₹242. Despite this, the stock remains in a downtrend, as it is trading below its 20-day, 50-day, and 100-day EMAs. Breaking above these levels would indicate the beginning of a trend reversal.
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The stock faces resistance at its 20-day EMA, and a sustained close above this level would be a positive signal. Crossing the 50-day EMA would add further strength to the recovery narrative. However, if the stock fails to maintain support above ₹245, it could resume its downtrend. For now, a stop loss at ₹245 limits downside risk, while the target of ₹270 aligns with resistance near the 50-day EMA.
Market Outlook and Strategy
Sumeet Bagadia emphasized that traders should prioritize a stock-specific approach given the current market conditions. While the broader market sentiment is improving, caution is necessary due to key resistance levels on major indices. For each of the recommended stocks, it is crucial to monitor technical indicators like EMAs, RSI, and volume trends closely.
Disclaimer
The above stock recommendations are insights from Sumeet Bagadia, an expert at Choice Broking. These views are based on technical analysis and market conditions and do not constitute financial advice. Investors are strongly encouraged to consult certified financial advisors before making any investment decisions.
By following Bagadia’s strategy and staying informed about technical indicators, traders can navigate the markets effectively and capitalize on opportunities presented by individual stocks.