Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — 5 January 2026

Buy or sell: The Indian stock market opened in 2026 on a strong and confident note, with benchmark indices posting fresh record highs amid broad-based participation. Buying interest remained robust across banking, auto, metals, and PSU stocks, while resilient domestic liquidity continued to absorb intermittent profit booking.

The Nifty 50 surged to new all-time highs, supported by optimism surrounding upcoming Q3 earnings and sustained confidence in India’s structural growth story. While FMCG stocks witnessed selective pressure due to sector-specific challenges, the overall market tone remained decisively bullish. The week reflected a healthy rotational rally at elevated levels, laying a constructive foundation for the new calendar year.

Stock market outlook

Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market's mood has improved after the Nifty 50 index decisively broke above the 26,200 resistance level. The Choice Broking expert said the key benchmark index is now heading towards 26,550-26,600. Therefore, when considering stocks that appear strong on the technical chart pattern, they should be preferred.

Speaking on the outlook of the Indian stock market, Sumeet Bagadia said, "The Indian stock market mood is looking strong as the Nifty 50 index has finally broken above the 26,200 hurdle. The 50-stock index may soon touch 26,550 to 26,600. The index has immediate support placed at 26,050, and one should maintain a buy-on-dips strategy until this immediate support is intact."

Stocks to buy: Sumeet Bagadia's share recommendations

Regarding stocks to buy on Monday, Sumeet Bagadia recommended these three buy-or-sell stocks: BEL, ICICI Bank, and Reliance.

1] BEL: Buy at ₹403, Target ₹435, Stop Loss ₹388.

BEL share price ended Friday’s session near ₹403, holding firm after a healthy consolidation phase. The overall price structure remains positive, with the stock continuing to trade in a higher highs and higher lows, indicating that recent declines were corrective in nature rather than trend-changing. The ability to sustain above its recent swing base reflects strong demand at lower levels.

Price action over the past few sessions shows absorption of supply near resistance, suggesting accumulation rather than distribution. It is trading well above its key EMAs, which are bullishly stacked and sloping upward, signalling a strong trending environment. Volume behaviour remains constructive, with relatively stronger participation on upward moves and reduced activity during consolidations.

The stock continues to respect its broader upward trend, and today’s close maintains the sideways-to-bullish bias. As long as BEL holds above ₹388, the structure remains favourable for continuation. On the upside, the setup points toward a move into the ₹435 zone, where the next supply area is likely to emerge.

2] ICICI Bank: Buy at ₹1355, Target ₹1444, Stop Loss ₹1315.

ICICI Bank's share is currently trading in a corrective phase on the daily chart, with the price positioned below all key EMAs, indicating short-term weakness. The EMAs are placed above the current price and are acting as strong overhead resistance, highlighting continued selling pressure.

Price is hovering near ₹1,350, forming lower highs, which confirms the corrective structure. Volume remains moderate, with no clear accumulation signals present at this time. A move above the 20-day EMA at ₹1,357 would indicate an early buy signal, suggesting improving short-term momentum. However, sustained strength would only be confirmed on a decisive close above ₹1,367, which aligns with the 50-day and 200-day EMAs. Such a move would signal a trend shift and could lead to further upside toward the ₹1,444 targets, which corresponds to the previous swing high zone visible on the chart.

On the downside, the ₹1,330 to ₹1,315 support zone remains crucial. A breakdown below this area would keep the structure weak and invalidate any bullish recovery attempts.

3] Reliance: Buy at ₹1592, Target ₹1700, Stop Loss ₹1555.

The Reliance share price is in a strong uptrend and is currently trading around ₹1,592, having reached a fresh all-time high. The stock has decisively broken above the previous swing high of ₹1,581, signalling a bullish breakout and continuation of the prevailing uptrend. The overall price structure is very bullish, characterised by higher highs and higher lows, indicating strong demand and momentum.

The breakout is accompanied by steady volumes, confirming active participation and accumulation at elevated levels. The Reliance share is trading well above all key EMAs, all of which are aligned positively and sloping upwards. The 20-day EMA remains an immediate dynamic support, offering a reliable level for intraday or short-term pullbacks.

Momentum is strong, with the RSI at 66, reflecting healthy bullish strength without being extremely overbought. As long as the stock remains above the short-term support, the uptrend is likely to continue. On the downside, ₹1,555 acts as a critical stop-loss level, while further upside could target ₹1,700 in the near term.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.