Buy or Sell: Sumeet Bagadia recommends buying three stocks on Monday, November 4

Buy or sell shares: Despite market volatility, India’s benchmark Nifty 50 broke its four-week losing streak and ended last week with a modest gain of around 0.51 percent. However, on a monthly basis, October witnessed the biggest sell-off since the COVID-19 crash of March 2020, marking a turbulent turn in the markets. Strong foreign capital outflows, weak second-quarter earnings and increased geopolitical tensions were the main causes of the market sell-off.

On Muhurat Day on November 1, the Nifty 50 rose 0.41 percent to 24,304.35. Currently, the index is down 7.5 percent from its all-time high of 26,277.35 on September 27.

Sumeet Bagadia, executive director at Choice Broking, believes that the overall trend in the Indian stock market is cautious. The trend may weaken if the index falls below the psychological level of 24,000.

A decisive breakdown below 24,000 would mean sharp selling pressure for the index, and the frontline index could fall towards the 23,450 to 23,400 range. On the upside, Dalal Street’s bias could improve if the index moves decisively above 24,500, Bagadia said.

As for the stocks to buy today, Sumeet Bagadia recommended buying these three stocks on Monday: ONGC, Mahindra and Mahindra and Aditya Birla Fashion and Retail (ABFRL).

Today, Sumeet Bagadia’s stock recommendations

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

Currently priced around ₹271.75, the recent rise from the support levels of ₹255 follows a long period of decline, suggesting the situation could improve if more buyers continue to support the stock.

ONGC is still trading below its major moving averages: the 20-day, 50-day and 100-day EMA (exponential moving average).

If the price is below these levels, it usually indicates a bearish trend, but if the stock closes above them, it could signal the start of a reversal.

A close above the 20-day EMA would be a positive sign, and crossing the 50-day EMA would further strengthen this. However, the stock may struggle to move higher if it stays below these points.

The recent low point, around ₹260 acts as a support level, where some buyers intervene.

“If ONGC falls below this support, it could continue its downward trend. But if it breaks above resistance at the 20-day and 50-day EMAs, it could head towards ₹290, which would be a stronger recovery sign. A suggested stop loss could be placed at ₹261 to limit downside risk while the target is set ₹290, in line with the resistance level around the 50-day EMA,” Bagadia said.

The stock chart shows signs of potential upside momentum. After a recent pullback, the stock is currently trading around ₹2,817.65.

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

A breakout above these levels would support a bullish move towards the target ₹3,000.

Complementing the positive momentum is a slight increase in trading volume, indicating growing market interest.

“If price remains above the 20- and 50-day EMAs, this would strengthen the bullish case for a move towards ₹3,000. Traders should watch for volume spikes and price action near these EMAs for confirmation. New investors can look for purchasing opportunities in the area ₹2,800, with a stop loss at ₹2,715. A break above the EMA resistance ₹2,888 would strengthen the case for short-term gains, potentially leading to a target of 2,888 ₹3,000 in the coming sessions,” Bagadia said.

ABFRL recently returned from close support ₹295, close to the 200-day EMA. This indicates that the stock is able to maintain stability at these levels.

There is a small resistance near the ₹320 level, which closely matches the 20-day EMA. This level could act as a barrier in the short term, where the price could consolidate or face selling pressure if resistance persists.

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

The Relative Strength Index (RSI) stands at 45.30, indicating moderate strength without being overbought. This leaves room for potential momentum building in the stock.

“Overall, the ABFRL trend is seen as sideways to bullish, and is supported by several technical indicators, which reinforce the positive sentiment. To take advantage of potential price changes, it may be wise to consider buying at the current market price , especially around ₹314. Implementation of a stop loss at ₹300 is advisable to effectively manage risks and protect investments against unexpected market shifts,” Bagadia said.

Read all market-related news here

Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not of Money Tinker. We advise investors to consult certified experts before making investment decisions.