Buy or sell stocks: Understanding the recent performance of the Indian stock market is crucial for making informed investment decisions. After a period of range-bound action with a positive bias, the market experienced a significant shift. On Friday, the Nifty 50 index ended 172 points lower after reaching a new peak of 22,794, and the BSE Sensex dropped 732 points from its lifetime high of 75,124. The Bank Nifty index also saw a significant decline of 307 points, closing at 48,923. In the broader market, the small-cap index finished 0.55 per cent lower after reaching a new peak of 47,678, and the mid-cap index ended 0.21 per cent lower after touching a new high of 42,774.

Stock market strategy for Monday

Sumeet Bagadia, a seasoned Executive Director at Choice Broking, believes that the bull trend of the Indian stock market got a dent on Friday as the Nifty 50 index once again plunged after making a double top at around its current resistance placed at 22,800. However, the Choice Broking expert maintained that the stock market trend is expected to remain bullish till the 50-stock index is above its current support of 22,150 to 222,200 range. On stocks to buy on Monday, Sumeet Bagadia recommended three buy or sell stocks — Grasim Industries, SAIL, and VOLTAS.

Also Read: When will Nifty 50 hit 25K, Sensex climb to one lakh? Experts give this timeline

Stocks to buy on Monday

1] Grasim Industries: Buy at ₹2481.35, target ₹2680, stop loss ₹2380.

Grasim share price is currently trading at ₹2481.35, and it recently broke out above the critical resistance level of ₹2380. This breakout indicates a significant shift in the stock’s price dynamics, suggesting a renewed bullish momentum. The daily charts show higher highs and higher lows, further confirming the stock’s strength and indicating a sustained uptrend. Additionally, Grasim share price is comfortably trading above its crucial moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) exponential moving averages (EMAs). This alignment underscores the stock’s robust underlying momentum and reinforces the bullish sentiment.

Furthermore, the momentum indicator Relative Strength Index (RSI) has surged higher, currently registering at 71.49 levels. This uptick in RSI indicates a significant increase in buying pressure and affirms the positive momentum in GRASIM.

Looking ahead, the breakout level of ₹2380 is expected to act as a formidable support level, providing a solid foundation for potential price advances. In light of these technical indicators, which have been meticulously analyzed, investors may find opportunities to capitalize on the stock’s upward trajectory while remaining vigilant for any signs of reversal or consolidation.

Based on the above analysis, we recommend buying Grasim shares at a CMP of ₹2481.35; it can also be accumulated on dips near ₹2430 with a stop loss of ₹2380 for the targets of ₹2680. This strategy presents a promising opportunity for potential profit, aligning with the positive market sentiment.

2] SAIL: Buy at ₹168, target Rs

SAIL share price is currently trading at ₹167.95 levels, demonstrating a positive bias within a range of ₹162 to ₹171. SAIL share price exhibits strength as it maintains positions above its short-term (20-day), medium-term (50-day), and long-term (200-day) exponential moving average (EMA) levels, affirming its bullish momentum. Moreover, the momentum indicator Relative Strength Index (RSI) is on an upward trajectory, trading at 70.76. This uptrend in RSI signifies increasing buying pressure and further supports the positive outlook for SAIL shares.

Regarding support and resistance levels, ₹162 emerge as a robust support level, providing a foundation for potential price rebounds. Conversely, a breakout above the resistance level of ₹171 could trigger a strong upward movement in the stock, targeting levels around ₹178 and beyond.

Given these technical indicators, investors may consider opportunities to capitalize on potential upward movements in SAIL share price, particularly if the stock breaches the above-level resistance. However, monitoring price action around crucial support and resistance levels is advisable to gauge the strength of the bullish momentum and manage risk effectively.

Based on the above analysis, we recommend buying SAIL shares at a CMP of ₹167.95; it can also be accumulated on dips near ₹165 with a stop loss of ₹162 for the targets of ₹178.

3] Voltas: Buy at ₹1491.50, target ₹1615, stop loss ₹1430.

VOLTAS share price is currently trading at ₹1491.50 levels, displaying robust bullish signals with higher, higher, higher, and low formation on daily charts. This pattern suggests sustained upward momentum. Supported by a strong support level at ₹1430 and trading above key moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, the stock exhibits considerable strength.

The Fibonacci Extension analysis also indicates a potential target of ₹1615, further supporting the bullish outlook. Investors and traders holding positions are advised to maintain their positions with a trailing stop loss set at ₹1430 levels to safeguard profits while allowing for further upside potential. Monitoring price action around support and resistance levels can provide valuable insights for optimizing trade management strategies.

Based on the above analysis, we recommend buying VOLTAS shares at a CMP of ₹1491.50; it can also accumulated on dips near ₹1460 with a stop loss of ₹1430 for the targets of ₹1615.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.