Buy or sell stocks: The Indian stock market continued the upbeat trend for the third consecutive session on Friday. The Bank Nifty index climbed to a new lifetime high of 57,830.20. The Nifty 50 index ended 124 points higher at 25,709, while the BSE Sensex ended 484 points higher at 83,952. Such a positive trend in Dalal Street ahead of Dhanteras has boosted the morale of bulls. Stock Market Outlook Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market sentiment turned positive as the Nifty 50 index broke above the 25,500 resistance and extended its gains further. The 50-share index will now touch 26,000 and 26,300 in the near term. One should maintain a stock specific approach and look at those stocks which look strong on the technical chart. Sumeet Bagadia, speaking on the Indian stock market outlook, said, “Indian stock market sentiment turned positive as the Nifty 50 index decisively broke above the 25,500 barrier. The 50-share index further extended its gains and closed above 25,700, indicating that the key point index is after the 002 and 06, and are 06. levels, respectively So, one should look at those stocks that look strong on the technical chart pattern.” Sumeet Bagadia’s stock recommendations for Monday In terms of stocks to buy on Monday, Sumeet Bagadia recommended three buy-or-sell stocks: Dr Reddy’s Laboratories, Tata Consumer Products and HDFC Bank. 1]Dr Reddy’s Laboratories: Buy at ₹1255.90, target ₹1340, stop loss ₹1210. Dr Reddy’s Laboratories share price is currently trading at ₹1,255.90. It is consolidating within a symmetrical triangle pattern on the daily timeframe, indicating a phase of accumulation ahead of a potential directional move. The stock has formed higher lows and lower highs, suggesting tighter price action that often precedes a breakout. Currently, the stock is trading near its key exponential moving averages (EMAs). Traders can look to buy at current levels, as if it manages to surpass and hold its EMAs, it could move to the higher zone of the pattern, indicating renewed buying interest. A successful breakout above the upper trendline of this formation will further strengthen the bullish outlook and trigger a strong upward move. The RSI is currently placed around 49, indicating a neutral bias, but is showing early signs of recovery, suggesting that momentum could build if price sustains above key moving averages. Finally, a buy is recommended at current levels with a target of ₹1,340 and a strict stop loss at ₹1,210 to manage downside risk. 2]Tata Consumer Products: Buy at ₹1166, target ₹1300, stop loss ₹1102. Tata Consumer Products stock is currently trading at ₹1,166 showing strong bullish momentum. The stock recently broke out of a symmetrical triangle pattern and rebounded from lower levels, indicating renewed buying interest. It has found solid support at the 50-week exponential moving average (EMA) on the weekly chart and continues to trade above its 20-day, 50-day and 200-day EMAs. This alignment of key moving averages across multiple timeframes underscores a well-established uptrend. The recent breakout above the crucial resistance level of ₹1,150 accompanied by the formation of bullish candles reflects a positive shift in market sentiment. Sustaining this momentum and breaking the significant resistance at ₹ 1,200 could open the door for an upside target of ₹ 1,300 in the near term. On the downside, immediate support is seen at ₹1,133, while a stop loss of ₹1,102 is recommended to manage risk effectively. The Relative Strength Index (RSI) currently stands at 66.09 and is trending upwards, indicating a strengthening momentum without entering the overbought territory. Finally, TATACONSUM offers a technically robust setup for short-term traders. With a favorable price structure, sustained bullish momentum and supportive technical indicators, entry at current levels with a target of ₹ 1,300 and a stop loss at ₹ 1,102 presents an attractive risk-reward opportunity. 3]HDFC Bank: Buy at ₹1002.55, target ₹1075, stop loss ₹965. HDFC Bank share price is currently trading at ₹1002.55. The stock consolidated within a wide range and formed a double bottom pattern on the daily chart. Today it gave a decisive breakout of this range, and holding above the breakout level could open the potential for further upside. Additionally, the price is trading comfortably above all key exponential moving averages (20, 50 and 200-day EMAs), indicating strong upward momentum and alignment across short-, medium- and long-term trends. The stock also managed to close above its central resistance zone near ₹1,000, and a sustained move above this level could act as a catalyst for an extended rally to higher targets. On the downside, immediate support is placed around ₹980, where accumulation has been observed, providing a cushion against short-term pullbacks. The RSI, currently at 75.12, reflects robust strength and indicates the potential for continued upward momentum. Traders can consider buying around ₹1002.55 with a stop loss at ₹965 for a target of ₹1075, while ensuring disciplined risk management. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or brokerage firms, not Mint. We advise investors to check with certified experts before making any investment decisions.
Buy or Sell: Sumeet Bagadia recommends three stocks to buy on Monday – October 20, 2025
