Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — 28 July 2025

Dalal Street Eyes Recovery After Volatile Week

As Indian equities prepare to open on Monday, July 28, 2025, following a choppy trading week, market participants are keenly watching expert recommendations for near-term opportunities. Sumeet Bagadia, Executive Director at Choice Broking and a seasoned technical analyst, has identified three stocks that could offer short-term upside in the coming sessions.

Despite recent global uncertainty, Bagadia remains selectively bullish, highlighting technically strong counters that have either broken out of consolidation patterns or signaled fresh momentum. Here are the top three picks Bagadia recommends for Monday.

1. Sun Pharma (NSE: SUNPHARMA)

CMP: ₹1,320 | Target: ₹1,380 | Stop Loss: ₹1,275

Sun Pharma has caught the analyst’s attention after showing resilience amid broader market corrections. According to Bagadia, the stock has formed a strong base around the ₹1,270–₹1,280 zone and is now attempting to break past resistance levels.

“Sun Pharma is trading above its key moving averages, and RSI is also showing positive divergence. A decisive breakout above ₹1,320 could lead to a quick rally towards ₹1,380 in the short term,” said Bagadia.

Technical indicators point to renewed buying interest as pharma stocks benefit from safe-haven demand. With the sector showing strength in the broader market, Sun Pharma may emerge as a leader in the pack.

2. Hindalco Industries (NSE: HINDALCO)

CMP: ₹610 | Target: ₹645 | Stop Loss: ₹590

Bagadia’s second pick is Hindalco, which has recently formed a bullish flag pattern on the daily chart, signaling a potential continuation of its upward momentum. The metals space has been buoyed by recovery signs in global commodity prices and strong domestic demand in infrastructure and auto sectors.

“Hindalco has seen a good volume-backed breakout and is likely to test higher levels. Traders can buy with a stop loss below ₹590 and aim for ₹645 in the near term,” Bagadia advised.

The stock’s upward crossover on the MACD and its strong support near the 50-day EMA support the positive view. Short-term traders could consider this as a swing trading opportunity.

3. Canara Bank (NSE: CANBK)

CMP: ₹565 | Target: ₹595 | Stop Loss: ₹545

Bagadia’s third recommendation comes from the banking space — Canara Bank, which is trading with strong momentum after its recent quarterly earnings beat. The PSU bank has gained traction on the back of rising interest income and robust loan book growth.

“Canara Bank has formed a higher high and higher low formation and is sustaining above ₹560. The breakout indicates further upside potential towards ₹595, provided the broader market remains stable,” Bagadia noted.

Technically, Canara Bank is witnessing sustained buying interest from institutional investors. With its RSI in bullish territory and prices holding well above key supports, the outlook for the next few sessions looks favorable.

Market Context: Cautious Optimism Prevails

Markets are entering the final trading week of July with a mixed global setup. The U.S. Fed’s policy stance, crude oil price fluctuations, and India Inc’s Q1 earnings will continue to influence sentiment. Last week, the Nifty 50 managed to hold the 25,400 zone despite heavy selling in IT and FMCG counters.

Domestic macro indicators — like GST collections, core sector output, and inflation expectations — will also guide investor action this week.

“Traders need to stay cautious with proper stop losses, especially amid earnings-led volatility. However, specific stocks are showing strength, and that’s where opportunities lie,” Bagadia emphasized.

Investor Outlook: Selective Participation Key

Bagadia's latest calls reflect a focus on technically strong stocks within stable sectors like pharma, metals, and banking. These sectors have shown relative strength in recent sessions and are poised to benefit from broader economic tailwinds such as capex growth, manufacturing uptick, and rising credit demand.

Investors and short-term traders should watch the market's opening trend on Monday and monitor global cues closely. A prudent risk management approach with defined stop losses, as suggested in Bagadia’s strategies, remains crucial in this environment.

As markets grapple with short-term volatility and macro uncertainties, Sumeet Bagadia's stock picks offer tactical trading opportunities. Sun Pharma, Hindalco, and Canara Bank are well-placed technically to deliver swift gains in the near term. However, staying disciplined and closely tracking market cues will be essential for execution success.