Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday - 26 May 2025

The Indian stock market witnessed a strong rally on Friday led by buying across the board, with both the benchmark indices, Sensex and Nifty 50, closing nearly a percent higher each. The turbulence in the global bond markets resulted in heightened volatility this week, and the domestic equity market registered a weekly loss.

On Friday, the Sensex surged 769.09 points, or 0.95%, to close at 81,721.08, while the Nifty 50 settled 243.45 points, or 0.99%, higher at 24,853.15. For the week, the Nifty 50 and Sensex fell nearly 1% each.

Stock market next week

As the benchmark Nifty 50 has decisively surpassed the crucial resistance of 24,800, analysts believe the next target for the index lies at 25,000 level. The sentiment remains neutral-to-positive, and the key support for the index is placed at 24,500.

A sharp rally past 25,000 may propel Nifty 50 towards the psychological 25,300 level, while on the flip side, only a breakdown below 24,500 could stir selling momentum, analysts said.

Stocks to buy

Sumeet Bagadia, Executive Director at Choice Broking has recommended three stocks to buy on Monday, 26 May 2025. The three stock picks by Bagadia are HDFC Life Insurance Company, ITC and Axis Bank shares.

Here are the three stocks to buy on Monday:

HDFC Life | Buy at ₹780.40 | Target Price: ₹860 | Stop Loss: ₹740

HDFC Life share price printed a strong bullish candle on the daily chart, backed by consistent volume activity, highlighting robust buying interest and positive sentiment among market participants. A decisive move and close above the ₹800 level could trigger further momentum, paving the way for the stock to chart new highs, with a near-term upside potential toward ₹860, Bagadia said.

Given this constructive technical setup and strong momentum indicators, traders may consider initiating long positions in HDFC Life shares at the current market price of ₹780.40. A stop-loss can be placed at ₹740, while a sustained breakout above ₹800 could open the path toward the ₹860 target in the near term.

ITC | Buy at ₹436.30 | Target Price: ₹475 | Stop Loss: ₹416

ITC share price action indicates a buildup for a potential breakout, with the stock now showing signs of renewed strength. On the technical front, ITC stock is displaying encouraging structure as it hovers just above its key moving averages — including the short-term, medium-term, and long-term EMAs — signaling improving price stability and support at current levels.

A sustained move above the ₹440 mark would confirm a breakout from the ongoing consolidation zone, potentially opening the path for an upside move toward the ₹475 target in the near term, Bagadia said.

Given the developing breakout setup and favorable technical signals, traders may consider initiating long positions in ITC shares at the current price of ₹436.30. A stop-loss can be maintained at ₹416, while a breakout above ₹440 could propel the stock toward the upside target of ₹475, he added.

Axis Bank Buy at ₹1,210.10 | Target Price: ₹1,330 | Stop Loss: ₹1,150

Axis Bank share price formed a strong Bullish Engulfing candle, a powerful reversal signal that reflects renewed buying interest and strengthens the bullish outlook. A sustained move above the ₹1,220 mark would confirm continuation of the upward momentum and could open the door for a potential rally toward the ₹1,330 target in the near term.

Technically, the stock is trading above all its key moving averages — short-term, medium-term, and long-term EMAs — reinforcing the strength and sustainability of the current trend.

Considering the favorable breakout structure and strengthening indicators, traders may look to buy Axis Bank shares at the current market price of ₹1,210.10. A stop-loss can be placed at ₹1,150, while a move above ₹1,220 could drive Axis Bank stock toward the target of ₹1,330, the Choice Broking expert said.

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