Stock Picks for 2025: M&M to Sun Pharma—Sumeet Bagadia suggests THESE three stocks to buy for long-term

Stocks picks for 2025: The Indian stock market's performance in 2024 has been noteworthy after wading through several challenges led by domestic and global factors and yet, concluding the year on a positive note. The domestic equity benchmarks Nifty 50 and Sensex are on track to post gains between 8-10 per cent amid a challenging global climate and slower pace of domestic growth.

While the outlook for 2025 remains positive, D-Street analysts have suggested investors must remain cautious of risks such as geopolitical tensions, trade conflicts, and economic slowdowns in China and Europe. Brokerages maintain that despite these challenges, India’s long-term growth potential, supported by diversified sectors, presents significant investment opportunities.

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In the current market scenario, Sumeet Bagadia, Executive Director of domestic brokerage Choice Broking has released his top three New Year stock picks for 2025 and recommends buying the stocks with additional ranges for targeting long-term potential returns. The D-Street expert has selected quality stocks for investors based on technical and fundamental parameters.

Sumeet Bagadia's stock picks for 2025

Let's take a look at the top three technical and fundamental stocks for the New Year by Sumeet Bagadia of Choice Broking:
 

1.Sun Pharmaceuticals: 

Buy Sun Pharma at ₹1,881, add upto ₹1,840 for target of ₹2,055/2,150

Sun Pharmaceuticals is currently trading at ₹1,881 and has recently reversed from a rising trend line, forming Doji candles near the bottom on the weekly chart. This signals a potential reversal and the onset of a strong bullish trend. A breakout above 1,880 could drive the stock towards the ₹2,055 and ₹2,150 levels, with immediate resistance at ₹1,960.

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On the downside, critical support levels are identified at ₹1,800 and ₹1,780. After a prolonged correction, the stock has rebounded from its support zone. The Relative Strength Index (RSI) of the pharma stock is currently at 64.9, indicating an upward trajectory and strengthening buying momentum.

Considering the technical indicators, a prudent strategy would be to look for buying opportunities on dips around the ₹1,840 and ₹1,800 levels. “Based on the technical analysis and prevailing market conditions, Sun Pharmaceuticals presents a promising buying opportunity for traders targeting the ₹2,055 and ₹2,150 levels. As always, it is essential to apply sound risk management strategies to mitigate potential market fluctuations,” said Bagadia.

2.Mahindra & Mahindra (M&M)

Buy M&M at ₹3,024, add upto ₹2,965 for target of ₹3,360/3,500

M&M is currently trading at 3,042 and has been consolidating near its all-time high, approaching a breakout from its daily range on the weekly chart. This indicates a potential reversal and the onset of a strong bullish trend. A breakout above ₹3,095 could propel the stock towards the ₹3,360 and ₹3,500 levels, with immediate resistance at ₹3,200.

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On the downside, critical support levels are identified at ₹2900 and 2790. After a prolonged correction, the stock has rebounded from its support zone. The Relative Strength Index (RSI) is currently at 56.3, indicating an upward trajectory and strengthening buying momentum. “Considering these technical indicators, a prudent approach would be to look for buying opportunities on dips around the ₹2,965 and ₹2,900 levels,” said the analyst.

According to Bagadia, based on the technical analysis and prevailing market conditions, M&M offers a promising buying opportunity for traders targeting the ₹3,360 and 3,500 levels. As always, it is crucial to implement effective risk management strategies to navigate potential market fluctuations.

3.Dalmia Bharat

Buy Dalmia Bharat at ₹1,772, add upto ₹1,725 for target of ₹1,950/2,040

Dalmia Bharat is currently trading at ₹1,772, moving within a sideways range on the weekly chart. The stock is trading near key support levels, suggesting a possible reversal and the emergence of a strong bullish trend. A breakout above ₹1,800 could drive the stock toward targets of ₹1,950 and 2,040, with an immediate resistance at ₹1,900.

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On the downside, important support levels are at ₹1,700 and 1,650. Following a prolonged period of correction, the stock has shown signs of recovery from its support zone. The RSI is at 45.11, indicating a potential upward move and increasing buying interest. Given the current technical setup, it would be prudent to consider accumulating positions on dips near ₹1,725 and ₹1,700.

According to Bagadia, the technical indicators of the stock and market conditions suggest that Dalmia Bharat presents a compelling buying opportunity for traders aiming for targets of ₹1,950 and 2,040. As always, employing robust risk management strategies is vital to mitigate market volatility.

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.