Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday – 21 July 2025
Indian stock indices finished lower on Friday after reacting negatively to the Q1FY26 earnings reports from the finance and IT sectors, even though there were some positive trends in global markets.
At the close of trading, the Sensex dropped by 501.51 points, or 0.61%, ending at 81,757.73, while the Nifty 50 declined by 143.05 points, or 0.57%, to finish at 24,968.40.
During the week, Indian equity markets exhibited a mixed performance, with both the Nifty-50 Index and Sensex declining by 1%, while small-cap stocks increased by 1.4% and mid-caps rose by 1% over the same timeframe.
Investors are now anticipating updates on trade discussions with the US as the August 1 deadline draws near, following President Donald Trump’s earlier comments that a deal with India is nearly complete. Analysts indicate that the markets are likely to experience a significant shift only after a definitive resolution in the trade talks with the US is achieved.
Stock market next week
According to Sumeet Bagadia, Executive Director at Choice Broking, the Indian stock market sentiment has turned weak as the Nifty 50 index has closed close to its 50-DEMA support of 24,900. On breaking below this support, the key benchmark index may try to touch next support of 24,650.
Stocks to buy
Sumeet Bagadia has recommended three stocks to buy on Monday, 21 July 2025. The three stock picks by Bagadia are Nestle India, ICICI Bank, and Hindalco Industries shares.
Here are the three stocks to buy on Monday:
Nestle India
Buy Nestle India shares in Cash at ₹2,472.20; Stop Loss at ₹2,350; Target Price at ₹2,720
Nestle India shares is currently trading at ₹2,472.20 and has been consolidating in a well-defined range over the past few sessions. However, the stock now appears to be on the verge of a potential breakout, supported by steady accumulation and consistent trading volumes, a classic indication of buying interest building at current levels.
The consolidation phase has laid the groundwork for a strong move, and a sustainable break above the ₹2,500 mark could act as a decisive trigger for a bullish breakout. This breakout would signal the end of the range-bound movement and the beginning of a fresh uptrend, offering a favourable opportunity for positional traders.
From a momentum perspective, the Relative Strength Index (RSI) stands at 61.72 and is trending higher, reflecting growing bullish sentiment and strengthening price action.
Additionally, Nestle India is comfortably trading above all its key moving averages, including short-term, medium-term, and long-term EMA, indicating a positive alignment across timeframes and reinforcing the stock’s bullish undertone. Technically, if the breakout above ₹2,500 is confirmed with strong follow-through, the stock has the potential to rally toward the next key resistance level around ₹2,720 in the short to medium term.
Considering the constructive chart structure, increasing momentum, and volume-backed accumulation, traders may consider buying Nestle India at the current market price of ₹2,472.20, with a stop-loss placed at ₹2,350 to limit downside risk. A breakout and sustained move above ₹2,500 could unlock upside potential toward ₹2,720, offering an attractive risk-reward ratio for positional traders.
ICICI Bank
Buy ICICI Bank shares in Cash at ₹1,425.80; Stop Loss at ₹1,360; Target Price at ₹1,560
ICICI Bank shares is currently trading at ₹1,425.80 and continues to maintain its long-term uptrend, reflecting strong structural strength in the broader timeframe. In the near term, the stock has entered a phase of consolidation near the higher levels, indicating a pause after its recent upward move. Despite this consolidation, fresh buying interest has been observed emerging from the lower band of the range, signaling underlying demand.
The stock is now hovering near its short-term and medium-term Exponential Moving Averages (EMAs), and a firm hold above these levels would reinforce the bullish setup. Importantly, a sustained move above the ₹1,450 mark could act as a confirmation of trend continuation, potentially opening the gates for an upside move toward the ₹1,560 level in the short to medium term.
On the momentum front, the Relative Strength Index (RSI) currently stands at 48.41 and is showing signs of a potential positive crossover. This suggests a likely pickup in bullish momentum if price strength continues to build, further supporting the case for an upside breakout.
From a technical standpoint, the confluence of long-term trend strength, renewed buying at lower levels, and proximity to key EMAs indicates that the stock is well-positioned for a possible move higher.
Traders may consider buying ICICI Bank shares at the current market price of ₹1,425.80, with a stop-loss placed at ₹1,360 to manage downside risk. A sustained move above ₹1,450 could serve as a breakout trigger, with the next upside target seen around ₹1,560, offering a favourable risk-reward opportunity for positional trades.
Buy Hindalco shares in Cash at ₹675.90; Stop Loss at ₹645; Target Price at ₹745
Hindalco shares is currently trading at ₹675.90 and has recently displayed a healthy pullback after a strong bounce from lower levels. Following the initial rally, the stock witnessed a minor retracement toward its immediate support zones, where it has now begun to show signs of reversal—indicating renewed buying interest emerging at lower levels.
The ongoing price action reflects a potential shift in momentum, supported by consistent trading volumes, suggesting active accumulation during the recent pullback. Technically, if Hindalco manages to sustain above the ₹685 mark, it would confirm the reversal and could lead to a further upside move toward the higher resistance zone near ₹745 in the short to medium term.
The Relative Strength Index (RSI) stands at 52.99 and is showing signs of recovery. A continued upward movement from current levels could lead to a positive crossover, which would further validate the bullish reversal and signal strengthening momentum.
Additionally, Hindalco is trading above all its key moving averages—short-term, medium-term, and long-term—indicating a strong underlying trend and alignment across timeframes, adding weight to the bullish outlook.
Given the supportive technical setup, volume behavior, and improving momentum indicators, traders may consider buying Hindalco at the current market price of ₹675.90, with a stop-loss placed at ₹645 to manage risk. A confirmed move above ₹685 could act as a breakout trigger, paving the way for a potential rally toward ₹745, offering a favorable risk-reward setup for positional trading.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
