Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday - November 18

Buy or sell stocks: The domestic stock market benchmarks, Nifty 50 and Sensex, are closed today, Friday, November 15, due to the observance of Guru Nanak Jayanti, creating a three-day trading hiatus.

On Thursday, both indices extended their losing streak to six consecutive sessions, marking multi-month lows. This decline was attributed to several headwinds, including weaker-than-expected Q2 earnings, continuous outflows of foreign funds, and rising inflation on both retail and wholesale fronts. The Sensex closed at 77,580.31 points, down by 110.64 points or 0.14%, while the Nifty 50 settled at 23,532.70 points, declining 26.35 points or 0.11%.

For the week, the benchmarks fell over 2.5 percent, extending losses for the 2nd straight week.

Vinod Nair, Head of Research at Geojit Financial Services, highlighted that the domestic market is currently in a correction phase. From its recent peak, the main indices, Nifty 50 and Sensex, have each retreated by about 10%. Market sentiment has been negatively impacted by lackluster Q2FY25 earnings and sustained foreign investor selling. Additionally, domestic CPI inflation has surged to a 14-month high of 6.2%, while a stronger dollar index and rising US 10-year Treasury yields point to continued volatility in the near future.

Sumeet Bagadia's stocks to buy

M&M | Buy in cash at ₹2,807.2 | Target price: ₹3,000 | Stop loss: ₹2,700

M&M stock is currently trading around ₹2,807.2, showing some consolidation after recent downward movement. The stock has been moving in a range, trying to find stability before making its next move.

The stock has strong support at ₹2,795 (near the 100-day Exponential Moving Average or EMA), and resistance around ₹2888. If the price breaks above ₹2,888, it could lead to a new upward trend, pushing the stock towards ₹3,000 and higher.

The stock has witnessed consistent trading volume, but it needs to break above the resistance level on stronger volume to confirm a sustainable uptrend. If the price holds above the Volume Weighted Average Price (VWAP) of approximately ₹2,795, a recovery can be anticipated in the coming sessions.

M&M is showing signs of recovery in the short term, especially if it can break above the ₹2,888 level. Investors can look for buying opportunities on dips while keeping an eye on Stop-Loss at ₹2,700 and target of ₹3,000 levels for further movement.

Jindal Steel | Buy in cash at ₹877.4 | Target price: ₹950 | Stop loss: ₹950

The JINDALSTEL stock chart shows some signs of recovery, but overall, it’s still in a downtrend. Currently priced around ₹877.4, The recent rise from the support levels at ₹855 follows a long period of decline, hinting that things could improve if more buyers continue to support the stock.

JINDALSTEL is still trading below its major moving averages: the 20-day EMA, 50-day EMA and the 100-day EMA. Being below these levels usually signals a bearish trend, but if the stock closes above them, it might show the beginning of a turnaround. A close above the 20-day EMA would be a positive sign, and crossing the 50-day EMA would further strengthen this. However, if it stays below these points, the stock may struggle to go higher.

The recent low around ₹855 is acting as a support level, where some buyers are stepping in. If JINDALSTEL falls below this support, it could continue its downtrend. But if it breaks above the resistance at the 20-day and 50-day EMAs, it might move toward ₹920, which would be a stronger recovery sign.

A suggested stop loss (SL) could be placed at ₹845 to limit downside risk, while the target is set at ₹950, aligning with the resistance level near the 50-day EMA.

Indian Hotels | Buy in cash at ₹741.35 | Target price: ₹799 | Stop loss: ₹715

INDHOTEL Limited is currently trading at ₹741.35 levels, showcasing a notable uptrend from the support levels around ₹700, in close proximity to its 20 Day Exponential Moving Average (EMA). The stock's positive momentum is further confirmed by its positioning above the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMA levels, reinforcing its technical resilience.

A significant breakthrough above the resistance at ₹750, supported by robust volumes, underscores the stock's strength which also marks its all-time high. A breakout above this crucial resistance could set the stage for a rally towards the target of ₹799 in the short term. Traders and investors who entered at lower levels are advised to safeguard their positions by trailing stop losses near ₹715, aiming for the target of ₹799 and beyond.

The momentum indicator, Relative Strength Index (RSI), is currently at 63.67 levels, indicating positive momentum in the stock. For those considering fresh investments, purchasing at the current market price (CMP) is a viable option, targeting ₹799, with a stringent stop loss set at ₹715 levels to manage risk effectively.

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