Buy or sell: Sumeet Bagadia recommends these three stocks for Monday - June 24

Buy or sell stocks: Experts observed that the market's medium-term texture is still positive, but a small bearish candle on weekly charts and a double top formation on intraday charts suggest further weakness from the current levels.

Nishant Kumar
First Published22 Jun 2024, 11:36 AM IST
Buy or sell: Sumeet Bagadia recommends these three stocks for Monday - June 24
Buy or sell: Sumeet Bagadia recommends these three stocks for Monday - June 24(MINT)

Buy or sell stocks: Indian stock market benchmarks, the Sensex and the Nifty 50, ended in the red on Friday, June 21. The indices witnessed profit booking at record levels amid the absence of fresh triggers. Nevertheless, the indices ended with mild gains for the week.

Sensex rose 0.3 per cent last week, while the Nifty 50 increased by 0.2 per cent. Midcaps underperformed the benchmark index, while the smallcaps outperformed. The BSE Midcap declined 0.2 per cent. On the other hand, the BSE Smallcap index jumped 1.4 per cent for the week.

During the week, the Sensex hit its all-time high of 77,851.63, and the Nifty 50 scaled a fresh peak of 23,667.10 before witnessing some profit booking at higher levels.

Experts observed that the market's medium-term texture is still positive, but a small bearish candle on weekly charts and a double top formation on intraday charts suggest further weakness from the current levels.

Buy or sell stocks for Monday — June 24

Sumeet Bagadia of Choice Broking has recommended three stocks for Monday — Bharti Airtel, IndiGo, and Dr Reddy's Laboratories

Bharti Airtel | Previous close: 1,416.05 | Target price: 1,520 | Stop loss: 1,360 | Upside potential: 7%

Bharti Airtel, a prominent player in the telecom sector, has demonstrated resilience and has given a strong breakout above 1,405 level.

The stock recently broke above the 1,405 level with high volumes, signalling robust strength.

This positive sentiment is further reinforced as it trades above its 20, 50, and 200-day moving averages, indicating bullish momentum.

It faces a minor resistance at 1,435 level. Sustaining above this resistance could trigger additional upward momentum, paving the way for further gains.

The Relative Strength Index (RSI) is presently at 58.11 and trending upwards, highlighting increased buying activity and further supporting the bullish outlook.

Given these technical indicators, Bharti Airtel presents a compelling investment opportunity.

"The strong bounce from support, a significant breakout, and favourable RSI readings make it an attractive prospect for investors looking to capitalise on its upward trajectory. Investors should be cautious and monitor the stock if it falls below 1,360, which could negate the positive outlook. A short-term target of 1,520 is achievable," said Bagadia.

InterGlobe Aviation (IndiGo) | Previous close: 4,310.15 | Target price: 4,600 | Stop loss: 4,180 | Upside potential: 7%

IndiGo is currently trading at 4,310.15 level, demonstrating a robust recovery from the support level of 4,180.

The stock has surpassed the small resistance of 4,260 which is also close to its short-term (20-day) EMA (exponential moving average) levels.

Currently, the stock is trading above its short-term (20-day), medium-term (50-day) and long-term (200-day) EMA levels.

The stock faces a minor resistance near 4,375 level on the higher side.

A successful breach of this resistance could trigger a significant upward movement, targeting 4,600 levels and potentially higher.

This upward momentum is further supported by the Relative Strength Index (RSI), which is currently higher at 54.04, indicating growing bullish sentiment.

The stock's recovery from key EMA levels and the upward trajectory of the RSI signal a favourable outlook.

Investors should monitor the 4,375 resistance level closely. Surpassing this point would likely validate the bullish trend, providing a strong impetus for further gains.

"IndiGo's technical indicators suggest a promising potential for upward movement. The support at 4,180 and the resistance at 4,375 are critical levels to watch, with a breakout above 4,375 paving the way towards the target of 4,600 and above. Investors holding positions can maintain their outlook with optimism, supported by the positive momentum indicators," said Bagadia.

"Based on the above analysis, we recommend buying the stock at the current market price of 4,310.15. It can also be added on dips near 4,260 levels for the target of 4,600, with a stop loss of 4,180," said Bagadia.

Dr. Reddy's Laboratories | Previous close: 6,011.45 | Target price: 6,380 | Stop loss: 5,800 | Upside potential: 6%

Dr Reddy's Laboratories is trading at 6,011.45 level, having displayed significant strength with robust volumes.

This stock signals bullish momentum. The stock has surpassed its key moving averages and is trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels, indicating sustained strength and a positive trend.

The momentum indicator RSI is also on an upward trajectory, currently positioned at 52.39 levels, further supporting the stock's bullish outlook.

The upward movement in RSI suggests increasing buying interest and momentum.

On the downside, the stock has a strong support level at 5,800, which aligns with its long-term (200-day) EMA. This support level is crucial for maintaining the stock's bullish stance.

"Given these technical indicators, the stock shows potential to move towards a target of 6,380 and above. The strong momentum, alignment above key moving averages, and positive RSI movement collectively suggest that the stock is poised for further gains. Investors holding the stock should consider maintaining their positions, capitalising on the upward momentum. In contrast, new investors might find current levels attractive for entry with an eye on the target of 6,380," said Bagadia.

Based on the above analysis, we recommend buying the stock at the current market price of 6,011.45 level. It can also be added on dips near 5,920 level for the target of 6,380 with a stop loss of 5,800," Bagadia said.

Read all market-related news here

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.

Also Read | Accenture results: Beware the premature optimism in Indian IT stocks
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First Published:22 Jun 2024, 11:36 AM IST
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