Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — 18 August 2025

Buy or sell stocks: The Indian stock market finally snapped a six-week losing streak as extreme oversold conditions and supportive global cues lifted investor sentiment. The Nifty 50 and Sensex ended the week with gains of around 1%, though momentum remained muted due to persistent foreign outflows.

Foreign Institutional Investors (FIIs) continued their aggressive selling, offloading nearly ₹10,000 crore in the cash market, while Domestic Institutional Investors (DIIs) absorbed the pressure with strong buying worth ₹19,000 crore. Broader markets staged a recovery across sectors, led by pharma and auto stocks, though FMCG lagged.

Stock market next week

Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market sentiment has improved after successive rallies in two straight sessions. However, the Choice Broking expert said the Nifty is facing an immediate hurdle at 24,650. On breaking above this level on a closing basis, Bagadia predicted another 100-point rally in the 50-stock index.

Speaking on the outlook of the Indian stock market, Sumeet Bagadia said, “The Indian stock market bias has improved after the relief rallies on the last two sessions last week; however, the 50-stock index trades in a tight 24,300 to 24,650 range. The broader range of the key benchmark index is 24,000 to 24,800. A bullish or bearish trend can be assumed on the breakage of either side of this range. If the rally extends further, we may see the Nifty 50 index touching 24,800 levels.”

Sumeet Bagadia recommended stocks

Sumeet Bagadia of Choice Broking advised investors to maintain a stock-specific approach and look at stocks that look strong on the technical chart. Asked about such stocks, Bagadia recommended buying these three shares: Maruti Suzuki India Ltd, Bajaj Finserv, and Power Grid Corporation of India.

1] MSIL: Buy at ₹12,936, Target ₹14,300, Stop Loss ₹12,300.

Maruti Suzuki India Ltd’s share price is currently ₹12,936, consolidating within a defined range over recent sessions. The stock is now on the verge of breaking out of this range, with price action supported by consistent trading volumes, a sign of steady accumulation and strong market participation.

If Maruti Suzuki India Ltd’s share manages to sustain above the ₹13,000 mark, it could confirm the breakout and open the door for further upside toward higher targets. Such a move would indicate the continuation of its prevailing bullish trend.

Momentum indicators back this view. The Relative Strength Index (RSI) is at 63.90, trending upwards, signalling strengthening momentum. Maruti Suzuki India Ltd’s share price is comfortably trading above all its key moving averages, short-term, medium-term, and long-term EMAs, which suggests robust underlying strength and a supportive trend structure.

From a price action standpoint, the consolidation near the highs and volume-backed breakout potential point toward bullish dominance and an attractive risk-reward opportunity.

Given the emerging technical setup, traders may consider buying Maruti Suzuki India Ltd shares at the current market price of ₹12,936, with a stop-loss set at ₹12,300 to manage downside risk. A sustained move above ₹13,000 could propel the share price toward the ₹14,300 target in the near term.

2] Bajaj Finserv: Buy at ₹1925.10, Target ₹2130, Target ₹1830.

Bajaj Finserv’s share is currently trading at ₹1,925.10, having seen a strong upmove from lower levels in the past. After a record high, the stock witnessed a healthy retracement, allowing it to cool off from overbought conditions. Recently, it has been taking support from its long-term EMA, a key dynamic support level, and is now showing early signs of a potential reversal.

A sustainable move above ₹1,980 could confirm this reversal and open the door for further upside in the near term. Such a move would suggest that the bulls are regaining control after the corrective phase.

Momentum indicators support this outlook. The Relative Strength Index (RSI) stands at 39.84 and shows a reversal from lower levels with a positive crossover, indicating an emerging uptrend. Additionally, Bajaj Finserv’s share is trading above its long-term EMA and is now approaching its short-term and medium-term EMAs, signalling improving technical strength.

From a price action perspective, the rebound from the long-term EMA combined with early momentum recovery suggests that the downside risk is limited, making the current setup attractive from a risk-reward standpoint.

Given the emerging reversal signals, traders may consider buying Bajaj Finserv shares at the current market price of ₹1,925.10, with a stop-loss set at ₹1,830 to manage downside risk. A sustained move above ₹1,980 could propel the stock toward the ₹2,130 target soon.

3] Power Grid Corporation of India: Buy at ₹288.70, Target ₹320, Stop Loss ₹275.

Power Grid Corporation of India’s share price is currently trading at ₹288.70. After bouncing from lower levels, the stock has entered a consolidation phase within a defined range. This consolidation has also taken the shape of an Ascending Triangle pattern on the daily timeframe. The stock is currently taking support near the lower boundary of this formation, hinting at a potential base for the next directional move.

If the stock manages to sustain above the ₹300 level, it could confirm a breakout from this pattern and open the way for further upside toward the ₹325 target. Such a breakout would mark a shift in momentum from consolidation to bullish continuation.

Momentum indicators support this view. The Relative Strength Index (RSI) stands at 45.75, showing an upward trend after reversing from lower levels and forming a positive crossover, signalling improving buying interest. Power Grid Corporation of India’s share is also trading near its short-term EMA and is approaching its medium-term and long-term EMAs. A sustained move above these levels would further strengthen the bullish case.

From a price action standpoint, the combination of firm support at the lower end of the formation and improving momentum suggests the potential for an upward breakout, offering an attractive risk-reward setup.

Given these technical signals, traders may consider buying Power Grid Corporation of India shares at the current market price of ₹288.70, with a stop-loss set at ₹275 to manage downside risk. A sustained move above ₹300 could soon drive the stock toward the ₹325 target.

Disclaimer: This story is for educational purposes only. 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.

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