Buy or Sell: Sumeet Bagadia Recommends 3 Stocks to Buy on Monday, February 17, 2025
Buy or Sell : The Indian stock market experienced its eighth consecutive session of losses on Friday, February 14, with the benchmark Nifty 50 index ending in the red. Concerns over trade wars, foreign capital outflows, and weak corporate earnings have contributed to this downward trend, causing the index to decline by 3.4% during this period. Amid this market volatility, Sumeet Bagadia, Executive Director at Choice Broking, has identified three stocks that investors should consider buying on Monday, February 17: Tata Consultancy Services (TCS), Reliance Industries, and ICICI Bank.
Bagadia’s recommendations come at a time when the Nifty 50 looks oversold, suggesting a potential relief rally despite underlying market weakness. According to Bagadia, the index would need to break above the 23,300 mark to regain positive momentum. Let’s take a closer look at his stock picks and the rationale behind each recommendation.
1. TCS (Tata Consultancy Services) | Buy in Cash at ₹3,934.85
- Target Price: ₹4,100
- Stop Loss: ₹3,800
TCS has been in a consistent downtrend, forming a pattern of lower lows and lower highs, indicating a bearish market sentiment. The stock is currently trading below its 20-day, 50-day, and 100-day Exponential Moving Averages (EMAs), reinforcing the negative trend. However, recent buying interest at the ₹3,900 support level suggests that the stock could rebound if it manages to break through key resistance levels.
According to Bagadia, “If TCS can break above the 20-day EMA, it would signal positive momentum, potentially driving the price towards ₹4,100. However, if the stock falls below the ₹3,900 support level, the downtrend could continue.”
Financial Ratios for TCS
| Ratio | Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 28.5 |
| Return on Equity (ROE) | 38.2% |
| Dividend Yield | 1.32% |
| Debt-to-Equity Ratio | 0.09 |
TCS’s strong fundamentals, including a high ROE and low debt-to-equity ratio, provide a solid investment case despite its recent downtrend. Investors are advised to implement a stop loss at ₹3,800 to manage potential risks.
2. Reliance Industries | Buy in Cash at ₹1,217.25
- Target Price: ₹1,300
- Stop Loss: ₹1,175
Reliance Industries is showing early signs of recovery after a prolonged bearish trend. The stock recently bounced off the ₹1,193 support level, indicating buying interest. However, it is still trading below its 20-day, 50-day, and 100-day EMAs, signaling continued bearish momentum unless it manages to break above these resistance levels.
Bagadia explained, “A breakout above the 20-day EMA (₹1,247) would be an early sign of strength, while a move above the 50-day EMA (₹1,261) could confirm a potential trend reversal.”
Financial Ratios for Reliance Industries
| Ratio | Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 22.3 |
| Return on Equity (ROE) | 12.8% |
| Dividend Yield | 0.42% |
| Debt-to-Equity Ratio | 0.33 |
Reliance Industries has a moderate debt-to-equity ratio and a stable P/E ratio, reflecting its strong position in the market. Bagadia suggests setting a stop loss at ₹1,175 to mitigate downside risk while targeting ₹1,300 for potential gains.
3. ICICI Bank | Buy in Cash at ₹1,260.10
- Target Price: ₹1,333
- Stop Loss: ₹1,212
ICICI Bank is trading around ₹1,260 after bouncing off the ₹1,212 support level, which is close to its 200-day EMA. This support level demonstrates the stock’s resilience and potential for a positive breakout. The Relative Strength Index (RSI) for ICICI Bank is at 52.41, indicating moderate strength with room for upward movement without being overbought.
Bagadia stated, “If ICICI Bank breaks above the minor resistance at ₹1,265, it could trigger further gains towards the target of ₹1,333. A stop loss at ₹1,212 is recommended to manage risks.”
Financial Ratios for ICICI Bank
| Ratio | Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 18.7 |
| Return on Equity (ROE) | 15.6% |
| Dividend Yield | 0.86% |
| Debt-to-Equity Ratio | 1.05 |
ICICI Bank shows a healthy ROE and a favorable P/E ratio, making it an attractive choice for investors. The stop loss at ₹1,212 provides a safety net against potential market downturns.
Market Outlook and Final Thoughts
The Indian stock market is currently experiencing a period of volatility, influenced by ongoing trade war concerns, foreign capital outflows, and underwhelming corporate earnings. However, the market also appears oversold, presenting an opportunity for a potential relief rally.
Sumeet Bagadia’s stock recommendations for TCS, Reliance Industries, and ICICI Bank are based on technical analysis and strategic entry points, along with well-defined target prices and stop-loss levels to manage risks. Investors are encouraged to monitor market conditions closely and make informed decisions.
As Bagadia suggests, a decisive break above Nifty 50’s 23,300 level could establish positive market momentum. Until then, cautious optimism and strategic buying could yield favorable results.
Conclusion: Strategic Buying Amid Market Volatility
Despite the current bearish sentiment in the Indian stock market, strategic investments in TCS, Reliance Industries, and ICICI Bank could provide substantial returns if key resistance levels are breached. Investors are advised to remain vigilant and implement proper risk management techniques.
These expert stock picks, backed by solid financial ratios and strategic entry points, could potentially outperform the market if broader indices regain momentum. Bagadia’s insights offer a balanced approach to navigating current market challenges.
By carefully following these recommendations and keeping a close watch on market trends, investors can capitalize on potential recovery opportunities while minimizing downside risks.
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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.