Top 3 stocks to buy: Bajaj Finance, Dr Reddy's Lab, Grasim Industries by Sumeet Bagadia | Target price, stop-loss
IT led sectoral gains with a 3.92% rise, while Media, Cement, Auto, Metal and PSU Bank also advanced. Mid Small Financial Services, Consumer Durables and Healthcare faced selling pressure.
Among the A-listed stocks on Dalal Street, Tata Elxsi shares were the top-gaining stocks with nearly 23% weekly gains, followed by Gallantt Ispat with 21%, 63 Moons Technologies with 20%, Tips Music, and Tech Mahindra logging around 20% gains last week.
Among the A-listed losers, KRN Heat Exchanger shares topped the list, losing around 17%, followed by Yes Bank and Avalon Technologies shares, which lost around 14% last week. Shares of HDB Financial Services lost more than 12.50%.
Consumer inflation hovering near the upper end of the RBI's tolerance band and a hotter-than-expected WPI print pushed the benchmark bond yield to a multi-year high, reviving fears of further monetary tightening. While the RBI's move to raise the daily CRR maintenance requirement to absorb surplus liquidity added to the caution, sentiment improved steadily as the central bank's special dollar window for oil marketing companies and tighter hedging norms drove a rebound in the rupee.
Expectations of a review of LTCG tax and STT, softer crude prices and easing bond yields further revived risk appetite. This made investors to look past the initial headwinds and tilt towards counters with strong Q2FY27 business updates, though the rally remained concentrated in large-caps, with mid-caps posting modest gains and small-caps ending marginally lower.
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market bias has improved and buying at lower levels is visible. Bagadia said that Nifty 50 closed at 23,146.15, gaining 148.80 points (+0.65%)after recovering from an early decline to 22,913.80 and finishing near the day’s high. The long lower wick on the daily candle highlights buying interest at lower levels, supporting the ongoing recovery.
On the outlook of the Nifty 50 index, Sumeet Bagadia of Choice Broking, said, “Immediate support is placed at 22,900–22,980, while resistance is seen at 23,250–23,300. RSI improved to 52.81, well above its average of 34.70, indicating strengthening bullish momentum.”
The Choice Broking expert said that PCR at 1.08 reflects a mildly positive derivatives setup, while India VIX remained steady at 14.0250. A sustained move above resistance could extend the recovery, while holding the support zone remains important for maintaining positive momentum.
On the outlook of the Bank Nifty index, Bagadia said, the key benchmark index ended nearly flat at 55,844.00, up 33.50 points (+0.06%), as the initial gap-up failed to translate into a strong directional move. After early volatility, the index remained largely range-bound, indicating consolidation following its recent recovery.
“Immediate support is placed at 55,400–55,500, with resistance around 56,000–56,100. RSI stands at 51.91, above its average of 40.51, suggesting improving momentum despite limited price progress,” said Bagadia.
The Choice Broking expert said the Bank Nifty index needs a decisive breakout above resistance to strengthen the bullish outlook, while a break below support could bring renewed selling pressure. For now, the near-term bias remains cautiously positive, with consolidation likely until a clear breakout emerges.
Regarding stocks to buy on Monday, Sumeet Bagadia of Choice Broking recommended buying the following three shares: Bajaj Finance, Dr Reddy's Laboratories, and Grasim Industries.
Bajaj Finance's share price has shown resilience, absorbing selling pressure within its primary demand zone of ₹945 to ₹960, and ended the session higher at ₹982. On the daily chart, following an extended correction from the peak of ₹1,176.40, the stock has established a base along this horizontal support shelf, printing a solid bullish candle accompanied by healthy market participation.
Dr Reddy's Laboratories Ltd share price has staged a firm recovery within an ascending channel, finishing the session on a positive note at ₹1,233.00. On the daily chart, the counter has established a sequence of higher highs and higher lows since bottoming near ₹1,101.00, with recent price action consolidating right above the dynamic median support of the upward-sloping channel.
Grasim Industries' share price saw strong demand-driven accumulation around the ₹2,850-2,860 support pocket, wrapping up the session in positive territory at ₹2,920. On the daily timeframe, following an aggressive drawdown from its swing peak, the stock has printed a bullish hammer-style candle with a lower shadow, signalling clear price rejection of lower levels and active dip-buying within this critical demand zone.
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
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