3 Stocks to Buy on Monday, February 24: Sumeet Bagadia Recommends IndiGo, Coal India & L&T
Market Overview: Volatility Persists as Nifty Tests Crucial Support Levels
3 Stocks to Buy : The Indian stock market closed in the red for the fourth consecutive session on Friday, mirroring weak global cues. The Nifty 50 index dropped 117 points, settling at 22,795, while the BSE Sensex declined 424 points to 75,311. The Bank Nifty also lost momentum, ending 353 points lower at 48,981.
Among sectoral indices, Nifty Metal was the only gainer, while Auto, Healthcare, Pharma, and Realty stocks led the decline. Broader markets also faced intense volatility, with the Nifty Midcap 100 and Small-cap indices shedding over 1.3% and 0.7%, respectively. Market breadth remained negative, with an advance-decline ratio of 0.75 on the BSE.
Sumeet Bagadia’s Stock Picks: Buy These 3 Stocks for Strong Gains
According to Sumeet Bagadia, Executive Director at Choice Broking, the market sentiment is cautious, as the Nifty 50 is hovering around a crucial support zone of 22,750–22,800. The opening hours on Monday, February 24, will be pivotal in determining short-term market direction.
Amid the uncertainty, Bagadia recommends focusing on technically strong stocks with bullish potential. He has identified three stocks that could offer attractive risk-reward opportunities:
- IndiGo (InterGlobe Aviation Ltd.)
- Coal India Ltd.
- Larsen & Toubro (L&T)
1. IndiGo (InterGlobe Aviation Ltd.) – Bullish Breakout Signals Further Upside
- Current Price: ₹4,510.75
- Target Price: ₹4,875
- Stop Loss: ₹4,330
IndiGo’s stock has broken out of a Cup & Handle pattern, a bullish continuation formation, indicating strong upward momentum. The stock recently bounced off a key support level with rising trading volumes, reaffirming its breakout strength.
IndiGo is trading above its key moving averages, having rebounded from its long-term Exponential Moving Average (EMA), which suggests a strong uptrend. The Relative Strength Index (RSI) at 61.39 indicates a sideways-to-bullish trend, supporting further price appreciation.
Key Insights:
- Sustaining above ₹4,575 could push the stock toward the ₹4,875 target.
- Maintaining the stop-loss at ₹4,330 ensures risk management.
2. Coal India Ltd. – Early Signs of Trend Reversal
- Current Price: ₹369.95
- Target Price: ₹410
- Stop Loss: ₹350
Coal India has been in a prolonged downtrend, forming lower highs and lower lows on the daily chart. However, recent price action indicates buying interest, signaling a potential reversal.
The RSI at 47.92 has reversed from lower levels, suggesting strengthening bullish momentum. The stock has crossed its short-term EMA, and if it manages to breach the medium-term EMA, it could further strengthen and move toward ₹410 resistance.
Key Insights:
- Holding above ₹385 could confirm bullish momentum.
- The stop-loss at ₹350 helps mitigate downside risk.
3. Larsen & Toubro (L&T) – Strong Rebound from Lower Levels
- Current Price: ₹3,315.10
- Target Price: ₹3,650
- Stop Loss: ₹3,175
L&T’s stock has bounced back sharply after a 20% decline, forming a strong bullish candle on the daily chart. This suggests renewed buying interest, further supported by increasing trading volumes.
The stock has been trading within a broad price range, and this rebound from the lower boundary signals a potential trend shift. The RSI at 45.03 is moving upwards after consolidating at lower levels, confirming bullish strength.
Key Insights:
- Sustaining above ₹3,350 can drive the stock toward ₹3,650.
- Traders should watch for breakouts above key resistance levels.
Financial Snapshot: Key Ratios of Recommended Stocks
| Company | Market Cap (₹ Crore) | P/E Ratio | ROE (%) | EPS (₹) |
|---|---|---|---|---|
| IndiGo | 86,000 | 15.2 | 18.5% | 296.5 |
| Coal India | 91,052 | 6.5 | 64.9% | 56.9 |
| L&T | 4,46,932 | 30.0 | 12.4% | 120.5 |
(Source: Screener, Reuters)
Final Thoughts: Market Caution, Stock Selection is Key
Despite ongoing market volatility, technically strong stocks like IndiGo, Coal India, and L&T offer high potential for gains. Traders should closely monitor price action, maintain defined stop-losses, and follow risk management strategies before making any investment decisions.
🚨 Disclaimer: Stock market investments are subject to risks. Please conduct thorough research or consult a financial expert before investing.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.