Buy or Sell: Sumit Bagadia recommends buying three stocks on Monday – November 4

Buy or sell shares: Despite market volatility, India’s Nifty 50 index snapped a four-week losing streak, ending last week modestly higher by about 0.51%. However, on a monthly basis, October witnessed the sharpest sell-off since the Covid-19 crash in March 2020, marking a turbulent turn in the markets. Strong foreign capital outflows, weak second-quarter earnings and rising geopolitical tensions were the main reasons for the market sell-off.

On Muhurat Day on November 1, the Nifty 50 index rose 0.41% to close at 24,304.35. The index is now down 7.5% from its all-time high of 26,277.35 hit on September 27.

Sumit Bagadia, chief executive of Choice Broking, said the overall trend in the Indian stock market is cautious. The trend could weaken if the index breaks below the psychological level of 24,000.

A decisive break below 24,000 would indicate sharp selling pressure on the index and the front index could fall to the 23,450-23,400 range. On the other hand, the Dalal Street bias could improve if the index moves decisively above 24,500, Bagadia said.

In terms of stocks to buy today, Sumit Bagadia recommended buying these three stocks on Monday: ONGC, Mahindra and Mahindra and Aditya Birla Fashion and Retail (ABFRL).

Sumit Bagadia’s Stock Recommendations Today

The ONGC stock chart is showing some signs of recovery but is still in a downtrend.

Currently the price is approx. ₹271.75, recent rise from support levels at ₹255 follows a long period of decline, hinting that the situation could improve if more buyers continue to support the stock.

ONGC continues to trade below its major moving averages: 20-day, 50-day and 100-day EMA (exponential moving average).

Staying below these levels usually signals a bearish trend, but if the stock closes above them, it could indicate the start of a reversal.

A close above the 20-day EMA would be a positive sign, while a cross over the 50-day EMA would further strengthen the situation. However, the stock may struggle to move higher if it stays below these marks.

Recent low, approx. ₹260 acts as a support layer where some buyers join.

“If ONGC falls below this support, it may continue its downtrend. But if it breaks the resistance at the 20-day and 50-day EMA, it could move towards ₹290, which would be a stronger sign of recovery. The recommended stop loss can be placed at ₹261 to limit downside risk while the target is set at ₹290, which corresponds to the resistance level near the 50-day EMA,” Bagadia said.

Mahindra and Mahindra | Buy cash at ₹2817.65 | Target price: ₹3000 | Stop loss: ₹2715

The stock chart is showing signs of potential upward momentum. After a recent pullback, the stock is currently trading around ₹2817.65.

However, it is currently trading below the 20-day and 50-day EMA, indicating that it needs to break above these moving averages to signal a strong recovery.

A break above these levels will support a bullish move towards the target ₹3000.

In addition to the positive dynamics, there was a slight increase in trading volume, indicating growing market interest.

“If the price holds above the 20-day and 50-day EMA, it could strengthen the bullish case for a move to the side ₹3000. Traders should watch for volume spikes and price action near these EMAs for confirmation. New investors may be looking for buying opportunities nearby ₹2800 with stop loss at ₹2715. Breakout above EMA resistance. ₹2888 will strengthen the argument for short-term gain, potentially leading to goal achievement ₹3,000 in the upcoming sessions,” Bagadia said.

ABFRL recently bounced off support near ₹295, which is close to the 200-day EMA. This indicates the stock’s ability to remain stable at these levels.

Next to ₹The 320 level, which closely matches the 20-day EMA. This level could act as a short-term barrier where price could consolidate or face selling pressure if resistance holds.

A break above this point could lead to further progress towards the target ₹335 and potentially higher.

The Relative Strength Index (RSI) is at 45.30, indicating moderate strength without reaching overbought conditions. This leaves room for the stock to potentially build momentum.

“Overall, the ABFRL trend is considered bullish and is supported by various technical indicators, adding to the positive sentiment. To benefit from potential price pullbacks, it would be wise to consider buying at the current market price, especially around ₹314. Setting a stop loss at ₹300 is recommended for effective risk management and protection of investments from unexpected market movements,” Bagadia said.

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Disclaimer: The opinions and recommendations expressed above are those of the individual analysts, experts and brokerage firms and not of Mint. We advise investors to consult with certified experts before making any investment decisions.