Market expert Sumeet Bagadia, Executive Director at Choice Broking, identified three Indian stocks priced under ₹100 for investors to consider on Monday, January 27, 2025. The recommendations included Pil Italica Lifestyle Ltd, Avonmore Capital & Management Services Ltd, and IEL Ltd, all suggested as "momentum buy" opportunities. Bagadia provided specific entry points, target prices, and stop-loss levels for each stock, emphasizing a cautious yet stock-specific approach in a volatile market.
Market Sentiment Remains Cautious[livemint]
The Indian stock market showed a cautious bias leading into the trading week of January 27, 2025. The Nifty 50 index was trading within a narrow range of 22,900 to 23,300 points. Bagadia noted that the 50-stock index struggled to decisively break above the 23,300 hurdle, facing profit-booking pressure. However, the key benchmark index maintained its position above the crucial 23,000 mark, suggesting potential for a bounce back.[livemint+1]
Indian indices experienced declines in the preceding Friday's session, resulting in weekly losses. The Sensex closed at 76,190.46 points, down 329.92 points, or 0.43 percent. The Nifty 50 finished at 23,092.20 points, a drop of 113.15 points, or 0.49 percent. TheSensex was approximately 10,000 points below its record high of 85,978 points seen in September of the previous year, having fallen 3 percent year-to-date. Market volatility stemmed from uncertainties surrounding US President Donald Trump's policies, raising concerns among investors about potential disruptions to global trade.[livemint+2]
The Top Stock Picks[livemint]
Sumeet Bagadia's recommendations for stocks under ₹100 for Monday, January 27, 2025, focused on momentum plays. A "momentum buy" strategy involves purchasing stocks that are showing strong upward price trends, with the expectation that this upward movement will continue. Investors aim to profit from the continuation of the current trend.
Pil Italica Lifestyle Ltd was recommended as a momentum buy at ₹16.02. Bagadiaset a stop loss at ₹15.4, meaning investors should consider selling the stock if its price falls to this level to limit potential losses. The target price for Pil Italica Lifestyle Ltd was set at ₹17.5. This targetrepresents the price at which investors might aim to sell their shares to realize profits.[livemint+1]
Avonmore Capital & Management Services Ltd also featured on Bagadia's list, recommended for a momentum buy at ₹23.46. For this stock, the suggested stop loss was ₹22.5, while the target price was ₹25.5. These levels provide a clear risk-reward framework for potential investors.[livemint+1]
The third stock recommended was IEL Ltd, with a momentum buy price of ₹23.56. The stop loss for IEL Ltd was advised at ₹22.5, and the target price was ₹26. These recommendations offer investors specific entry and exit points based on technical analysis.[livemint+1]
Bagadia's Market Outlook
Bagadia emphasized the need for a stock-specific approach for investors, especially given the prevailing market conditions. He advised looking at stocks that demonstrate strong technical chart patterns. From a broader market perspective, Bagadia suggested that if the Nifty 50 index were to fall below the 23,000 mark on a closing basis, it might test lower levels between 22,750 and 22,700. Conversely, for an improvement in overall market sentiment, the Nifty 50 index would need to break above the 23,350 level on a closing basis. This indicates key resistance and support levels that market participants should monitor closely.[livemint+4]
Investors often use such technical levels to make informed decisions, balancing potential gains with risk management strategies like stop losses. The recommendations for January 27, 2025, provided clear parameters for those looking at opportunities in the under ₹100 segment of the market.
