As Indian equities extended their winning streak into a fourth consecutive session, a seasoned analyst has turned his gaze toward three companies whose price charts tell a story of momentum finding its footing. In markets where sentiment and structure briefly align, Sumeet Bagadia of Choice Broking sees in Dr. Reddy's Laboratories, Larsen & Toubro, and Adani Ports the technical signatures of stocks poised to climb — provided the broader market holds the ground it has recently reclaimed. The exercise is a reminder that in investing, as in navigation, knowing where to stop is as important as kno
Analyst picks Dr. Reddy's, LT, Adani Ports as buys amid market strength
Stocks trading above their key moving averages, displaying higher highs and higher lows
Mark
So the market's been up four days in a row. That's the setup Bagadia is working with?
Mimi
Exactly. He's looking at a market that's held above 22,000 on the Nifty and is now testing higher levels. That kind of consistency—four days of gains—suggests there's real money flowing in, not just a one-day pop.
Luke
But we should be clear: four days is not a trend. It's a good start. The real question is whether 22,000 holds as support if we get a pullback.
Mark
And the three stocks he's recommending—they're all near all-time highs. Isn't that late to the party?
Mimi
Not necessarily. The idea is that they're showing momentum—higher highs, higher lows, volume backing the moves. Technical analysts read that as confirmation that the uptrend has legs.
Luke
Right, but that's a pattern-based argument. It's not a fundamental argument. We don't know if Dr. Reddy's earnings justify ₹6,780 or if LT's business is actually improving. We're reading price action.
Mark
So these are short-term trades, not long-term holds?
Mimi
The targets suggest a near-term horizon, yes. ₹6,780 for Dr. Reddy's from ₹6,317 is about a 7% move. That's weeks or months, not years.
Luke
And the stop-losses are tight. If you buy Dr. Reddy's at ₹6,145 and stop out at ₹5,950, you're risking about 3% to make 7%. That's a reasonable risk-reward, but only if the pattern actually works.
Mark
What could break these setups?
Mimi
A broader market correction. If the Nifty rolls over below 21,800, all three of these stocks could follow. They're riding the market's momentum.
Luke
Also, volume could dry up. These recommendations assume the trading activity that's been backing these moves continues. If it doesn't, the patterns lose their predictive power.
El Pulso
- Indian markets have now risen for four straight sessions, with the Nifty 50 holding above the psychologically significant 22,000 level — a threshold analysts treat as a barometer of underlying conviction.
- The advance is unusually broad: smaller companies outpaced blue chips, and an advance-decline ratio above 1.5 signals that the rally is not merely a story of a few heavyweight stocks pulling the index.
- Bagadia's three picks — Dr. Reddy's near its all-time high, LT recovering from a correction via a bullish engulfing pattern, and Adani Ports aligned above all four key moving averages — each carry distinct technical narratives but share the same structural hallmarks of a healthy uptrend.
- The strategy is deliberately patient: all three recommendations call for buying on dips rather than chasing current prices, with precise stop-loss levels built in to guard against the scenario where the patterns fail to hold.
- The market's next test lies at resistance levels of 22,400 and 22,800, while 21,800 stands as the line in the sand — the point at which the current optimism would need to be reassessed.
As Indian equities extended their winning streak into a fourth consecutive session, a seasoned analyst has turned his gaze toward three companies whose price charts tell a story of momentum finding its footing. In markets where sentiment and structure briefly align, Sumeet Bagadia of Choice Broking sees in Dr. Reddy's Laboratories, Larsen & Toubro, and Adani Ports the technical signatures of stocks poised to climb — provided the broader market holds the ground it has recently reclaimed. The exercise is a reminder that in investing, as in navigation, knowing where to stop is as important as knowing where to go.
India's stock market closed higher for the fourth day running on Friday, carried by a wave of global optimism that lifted the Nifty 50 by 129 points to 22,040 and the BSE Sensex by 376 points to 72,426. The rally was notably democratic: smaller companies outperformed the major benchmarks, and sectors from banking to pharmaceuticals to consumer goods all participated. An advance-decline ratio of 1.56:1 confirmed that the gains were broadly shared rather than concentrated in a handful of names.
Against this backdrop, Sumeet Bagadia, Executive Director at Choice Broking, sees the market's ability to sustain above 22,000 as evidence of genuine strength. He places critical support at 21,800 and envisions the Nifty testing 22,400 and then 22,800 in the weeks ahead. Within that constructive outlook, he has identified three stocks whose technical setups he finds compelling for Monday.
Dr. Reddy's Laboratories, trading near its all-time high at ₹6,317, displays the classic signature of a stock in a healthy uptrend — successive higher peaks and higher troughs on weekly charts, supported by strong volume and a price sitting above its 20-, 50-, and 200-day exponential moving averages. Bagadia recommends entering on a dip around ₹6,145, targeting ₹6,780, with a stop-loss at ₹5,950.
Larsen & Toubro tells a slightly different story: a bullish reversal after a period of correction. At ₹3,384, the stock has formed a bullish engulfing candlestick pattern on meaningful volume, and it sits above both its 100-day and 200-day moving averages. The suggested entry is near ₹3,300, with a target of ₹3,800 and a stop-loss at ₹3,240 — a setup that implies the stock has found a floor and is beginning to reassert itself.
Adani Ports, hovering near its all-time high of ₹1,309.85, mirrors Dr. Reddy's pattern of higher highs and higher lows, but adds an additional layer of conviction: the stock trades above all four key moving averages simultaneously, a rare alignment suggesting momentum across multiple time horizons. Bagadia targets ₹1,520, recommending entry on dips near ₹1,280 with a stop-loss at ₹1,260.
The common thread across all three recommendations is discipline. Bagadia's approach favors buying into weakness rather than momentum, and each call is anchored by a defined stop-loss — an acknowledgment that even well-constructed technical setups can unravel if the market's current positive bias fades. Whether these targets are reached ultimately depends on whether the patterns hold and whether the broader rally has more room to run.
The Indian stock market closed higher for the fourth consecutive day on Friday, riding a wave of optimism that swept through global markets. The Nifty 50 index climbed 129 points to settle at 22,040, while the BSE Sensex gained 376 points to finish at 72,426. The Bank Nifty added 165 points, ending at 46,384. Across the board, smaller companies outpaced the major benchmarks, with an advance-decline ratio of 1.56:1 signaling broad participation. Banks, automakers, pharmaceutical firms, state-owned enterprises, and consumer goods companies all saw significant trading activity.
Sumeet Bagadia, Executive Director at Choice Broking, sees the market's ability to hold above the 22,000 level as a sign of underlying strength. He identifies 21,800 as a crucial support point for the Nifty 50 in the near term, with the index potentially testing 22,400 and 22,800 in the weeks ahead. Against this backdrop of market momentum, Bagadia has identified three stocks he believes are positioned to move higher.
Dr. Reddy's Laboratories is trading near its all-time high at ₹6,317, displaying a pattern of successive higher peaks and higher troughs on weekly charts alongside robust trading volume. The stock is trading above its 20-day, 50-day, and 200-day exponential moving averages—a technical alignment that typically suggests sustained upward momentum. Bagadia recommends buying on dips around ₹6,145, with a target price of ₹6,780 and a stop-loss set at ₹5,950. The recommendation hinges on the view that the stock's technical setup offers a favorable risk-reward profile for investors willing to wait for pullbacks before entering.
LT presents a different technical picture: a bullish reversal following a correction from higher levels. The stock, currently at ₹3,384, has formed what technical analysts call a bullish engulfing pattern—a shift in momentum signaled by substantial volume. Like Dr. Reddy's, LT is positioned above key exponential moving averages, including the 100-day and 200-day. Bagadia suggests buying on dips near ₹3,300, targeting ₹3,800 with a stop-loss at ₹3,240. The setup suggests the stock has found a floor and is beginning to climb again.
Adani Ports, trading near its all-time high of ₹1,309.85, shows the same pattern of higher highs and higher lows that characterizes Dr. Reddy's, again accompanied by strong volume. The stock sits above all four key exponential moving averages—the 20-day, 50-day, 100-day, and 200-day—a rare alignment that suggests momentum across multiple time horizons. Bagadia targets ₹1,520 with a recommended entry on dips around ₹1,280 and a stop-loss at ₹1,260. The recommendation reflects confidence that the stock's upward trajectory remains intact.
All three recommendations rest on the same technical foundation: stocks trading above their key moving averages, displaying patterns of higher highs and higher lows, and showing strong trading volume. These are the hallmarks of what technical analysts consider a healthy uptrend. Bagadia's approach emphasizes buying on weakness rather than chasing strength—a risk management principle that acknowledges markets do not move in straight lines. Each recommendation includes a specific stop-loss level, a discipline meant to protect capital if the anticipated move fails to materialize. The broader context is a market that has found its footing after a correction, with both large-cap and small-cap stocks participating in the advance. Whether these three stocks deliver on their targets depends on whether the market's current positive bias persists and whether the technical patterns that define them hold their shape.
Citas Notables
Overall Indian stock market managed to maintain its positive bias after sustaining above the 22,000 level— Sumeet Bagadia, Executive Director, Choice Broking
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