Buy or sell: Sumeet Bagadia recommends three stocks to buy today — Sept 2

Buy or sell stocks: Following strong global sentiments, the Indian stock market ended higher for the twelfth straight session on Friday last week. The Nifty 50 index registered its best winning streak since its launch in 1996 by rising on the 12th day in a row. The 50-stock index finished 83 points higher at the 25,235 mark, the BSE Sensex shot up 231 points and closed at 82,365, whereas the Nifty Bank index ended 198 points higher at 51,351.

Due to index rebalancing volumes, cash market volumes on the NSE were around 71% higher than the previous day. The broad market indices rose more than the Nifty even as the advance-decline ratio rose to 1.39:1.

Sumeet Bagadia's stock recommendations for Monday

Sumeet Bagadia, Executive Director at Choice Broking, believes the overall Indian stock market trend is positive. The Choice Broking expert said the 50-stock index has sustained above 25,000, and the frontline index is set to touch 25,550 to 25,600 once it breaches the minor hurdle placed at 25,300. He said that the Nifty today has crucial support at 24,900 and immediate support at the 24,100 mark.

Regarding stocks to buy on Monday, Sumeet Bagadia recommended buying the following three shares: Dr Reddy's Laboratories, Godrej Consumer Products, and Pidilite Industries.

Sumeet Bagadia's stocks to buy on Monday

1] Dr Reddy's Laboratories: Buy at ₹7031.35, target ₹7410, stop loss ₹6780.

Dr Reddy's Laboratories share price currently trades at ₹7031.35, showing a positive trend with a steady upward movement. The stock is positioned above its short-term (20-day EMA), medium-term (50-day EMA), and long-term (200-day EMA) exponential moving averages, signalling strong bullish momentum. This alignment of EMAs indicates that the stock is in a solid uptrend, and buyers are in control. The recent trading volumes also suggest a growing interest among investors, further supporting the bullish sentiment.

The price action shows a consistent upside move, confirming a well-established uptrend. Minor resistance appears to be around the ₹7,065 mark. A decisive break above this level, especially with increased volume, could lead to a further rally towards ₹7,410.

Investors can consider buying Dr Reddy's Laboratories shares at ₹7031.35 with a stop loss of ₹6,780 to capitalize on the bullish momentum and achieve a target of ₹7,410.

2] Godrej Consumer Products: Buy at ₹1481.20, target ₹1600, stop loss ₹1425.

Godrej Consumer Products share price appears to have exhibited a notable resurgence. It recently rebounded from a support level of ₹1425, which is just below its 20-day EMA and close to its 50-day EMA levels, and is presently trading at around ₹1481.20. The fact that the stock trades above all the essential Exponential Moving Averages (EMA) suggests significant strength.

Additionally, the Relative Strength Index (RSI) indicator, which hovers around the 59.32 level, indicates a balanced market sentiment, potentially poised for an upward move.

The stock needs to breach a minor resistance level at ₹1520. If it successfully closes above this level, it may have the potential to advance towards ₹1600 and beyond.

Based on the above analysis, we recommend buying Godrej Consumer Products shares at a CMP of ₹1481.20 and an SL of ₹1425 with a target of ₹1600.

3] Pidilite Industries: Buy ₹3123.30, target ₹3280, stop loss ₹3050.

Pidilite shares are trading at ₹3,123.30, indicating a robust recovery after bouncing back strongly from the support level of ₹3,050. This rebound has allowed the stock to break through the resistance level of ₹3,100, also aligned with its short-term (20-day EMA) and medium-term (50-day EMA) moving averages. This crossover above critical EMAs suggests that the stock is gaining strength and could continue to trend upwards.

The momentum indicator RSI (Relative Strength Index) further supports this bullish outlook. It shows upward movement and is currently trading at 53.37, which suggests that buying momentum is building. On the upside, the stock faces minor resistance around the ₹3,140 mark. If PIDILITIND manages to close above this resistance, it could pave the way for a substantial move towards the target of ₹3,280. Investors may consider accumulating the stock on dips while monitoring the ₹3,050 support level for risk management.

Based on the above analysis, we recommend buying PIDILITIND at a CMP of ₹3123.30 with an SL of ₹3050, with a target of ₹3280.

Disclaimer: 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.