Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday - 27 July 2026 | Stock Market News

Buy or sell stocks: The Indian stock market ended another session in negative territory on Friday, July 24, with benchmark indices extending their losing streak to five consecutive sessions. Investors remained cautious amid escalating geopolitical tensions in the Middle East, while rising crude oil prices continued to weigh on sentiment.

The Nifty 50 slipped 0.43% to close at 23,767, falling below the 23,800 mark after losing 0.53% in the previous session. The BSE Sensex also declined 0.43% to settle at 76,408. The weakness was not limited to frontline indices, with the Nifty Midcap 100 and Nifty Smallcap 100 ending 0.10% and 0.32% lower, respectively.

The sell-off capped a difficult week for domestic equities. Both the Nifty 50 and Sensex lost more than 2.5% during the week, their steepest weekly decline in four months, highlighting the growing impact of global uncertainties on investor confidence.

Concerns intensified as the conflict in the Middle East entered its 13th day. According to reports, Yemeni Houthi fighters attacked two Saudi oil tankers in the Red Sea, widening disruptions to another key global shipping route. Following the attacks, U.S. President Donald Trump warned of "major military punishment" for Iran and the Houthis.

Adding to the nervousness, crude oil prices remained elevated and were on course for another double-digit weekly gain, after rallying nearly 15% in the previous week. Sustained strength in oil prices has heightened concerns over inflation and its potential impact on global economic growth.

Sumeet Bagadia, Executive Director at Choice Broking, highlighted that from a technical perspective, Nifty formed a bullish recovery candle with a long lower shadow, indicating strong buying interest near lower levels after the early decline. The successful rebound from the gap support reinforces the importance of the 23,600–23,650 zone in the near term. However, the index continues to trade below its key moving averages, suggesting that the broader trend remains under pressure, he added.

Bagadia further noted that the RSI slipped to 42.87, reflecting weak momentum, while India VIX rose 4.12% to 14.03, signalling higher market volatility.

"Immediate support is placed at 23,500–23,550, whereas 23,950–24,000 remains the immediate resistance zone. Until a decisive breakout occurs, Nifty is expected to trade within the 23,500–24,000 range, with the overall bias remaining Sideways," he predicted.

According to the Choice expert, technically, Bank Nifty formed a strong bullish recovery candle, indicating that demand continues to emerge near key support zones. The index successfully defended the 56,000 level and, more importantly, taken support at 50 EMA in Weekly timeframe, reinforcing the positive medium-term trend despite ongoing short-term volatility, he stated.

"This recovery keeps the broader market structure constructive as long as the support zone remains intact. Immediate support is placed at 56,000–56,100, while 57,300–57,400 is expected to act as the immediate resistance area. A sustained move above this resistance could strengthen bullish momentum, whereas a break below support may invite fresh selling pressure. Until then, Bank Nifty is likely to trade within the 56,000–57,400 range, with the overall bias remaining Sideways," highlighted Bagadia.

Regarding stocks to buy on Monday, 27 July, Sumeet Bagadia recommended these three buy-or-sell stocks: LTM, AU Small Finance Bank, and ITC.

LTM is showing signs of recovery after a prolonged corrective phase and is currently trading around ₹4,091. The stock has taken support near a rising trendline, indicating renewed buying interest and the possibility of a short-term trend reversal. Technically, the latest session formed a bullish Marubozu candlestick, reflecting strong buying momentum throughout the day, while the stock closed near its session high. It has also reclaimed the 20-day and 50-day EMAs, signalling improving short-term strength, although the 100-day EMA near ₹4,276 remains the immediate resistance.

Additionally, the RSI is maintaining a positive crossover, supporting the bullish outlook. A sustained move above current levels could drive the stock towards ₹4,276, and a breakout beyond this level may extend the rally to ₹4,400. On the downside, ₹3,900 remains the key support and should be maintained as the stop-loss level.

AU Small Finance Bank is attempting to regain momentum after witnessing profit booking from its all-time high zone and is currently trading around ₹1,004. The stock has repeatedly found support near its 200-day EMA, highlighting the presence of strong long-term buying interest. After closing close to this major moving average in the previous session, the latest trading session witnessed a healthy rebound of 2.59%, indicating renewed demand from lower levels. Although the stock is still trading just below its 20-day and 50-day EMAs, it continues to hold above the 100-day EMA, suggesting that the broader trend remains constructive.

The RSI is placed around 45.35, indicating improving momentum with scope for further recovery. A sustained move above the short-term moving averages could trigger fresh upside towards ₹1,090, which coincides with its recent swing high and all-time high zone. ₹945, near the 200-day EMA, should be maintained as the crucial stop-loss.

ITC is showing early signs of stabilization after undergoing significant selling pressure since the beginning of the year and is currently trading around ₹283. Over the past month, the stock has managed to establish a base near the ₹275 zone, where a double-bottom formation appears to be developing, indicating a potential reversal from lower levels. Technically, the stock has reclaimed and is trading just above its 20-day EMA, reflecting improving short-term strength. In addition, a bullish Hammer candlestick formed during the previous week, followed by continued gains, further strengthens the possibility of a recovery. Momentum is also improving, with the RSI gradually moving higher from lower levels.

If the stock sustains above current levels, it could witness an upside move towards ₹301, which coincides with the 100-day EMA and a key resistance zone. On the downside, ₹275 remains a crucial support and should be considered as the stop-loss level.

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.

Pranati Deva is a seasoned financial journalist with over a decade of experience in high-pressure newsroom environments, currently working as a Senior Sub Editor at LiveMint. Over the years, she has developed a reputation for sharp editorial judgement, a strong grasp of market dynamics, and the ability to translate complex financial developments into clear, engaging stories for a wide audience. <br><br> Her core areas of coverage include stock markets, leading listed companies, currencies, and commodities, with a particular strength in fast-paced, real-time market reporting. She is known for handling breaking market news, earnings-driven stock movements, and macroeconomic developments with speed, accuracy, and context—qualities that are essential in financial journalism. <br><br> Pranati has built a diverse and credible professional track record across some of India’s most respected news organisations, including MintGenie, CNBC-TV18, Business Standard and EconomicTimes.com. During her stints at these platforms, she produced data-driven market stories, curated and steered live blogs during volatile trading sessions, and conducted interviews with market veterans, fund managers, economists, and industry experts. Her work often combines on-ground reporting with analytical depth, helping readers make sense of daily market fluctuations and longer-term trends. An alumnus of the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi, Pranati brings a strong academic foundation to her journalism. She specialises in real-time financial reporting, with a keen focus on precision, balance, and insight, aiming to decode market movements in a way that is both informative and accessible to readers across experience levels.

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