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Business News/ Markets / Stock Markets/  Buy or sell: Sumeet Bagadia recommends these three stocks to buy next week
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Buy or sell: Sumeet Bagadia recommends these three stocks to buy next week

Buy or sell stocks: Sumeet Bagadia has recommended three stocks to buy next week - Infosys, India Cement, and Titan.

Buy or sell stocks: Sumeet Bagadia has recommended buying Infosys, India Cement, and Titan next week. (iStock)Premium
Buy or sell stocks: Sumeet Bagadia has recommended buying Infosys, India Cement, and Titan next week. (iStock)

Buy or sell stocks: The domestic equities benchmark indices, Nifty 50, and the Sensex ended in green on Friday's sessions led by gains in banking and IT stocks, and after Reserve Bank of India's (RBI) maintained its policy rates and stance, as expected.

The RBI raised its forecast for GDP growth in the fiscal year 2024, maintained the policy stance of "withdrawal of accommodation," and left the repo rate at 6.5% unchanged. In spite of this, the central bank maintained its forecast for inflation, estimating 5.4% for FY24 for retail inflation, or inflation based on the Consumer Price Index (CPI).

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During the session, the Nifty 50 reached an all-time high of 21,006.10, breaking through the 21,000 barrier for the first time. During the session, the Sensex reached a new record high of 69,893.8.

Also Read: Stock Market Today: Nifty 50 settles near 21,000 as RBI raises growth forecast; bank, IT stocks shine

The Sensex finished the day up 304 points, or 0.44%, at 69,825.60, while the Nifty 50 closed at 20,969.40, up 68 points, or 0.33%. During the session, the BSE Midcap and Smallcap indices also reached fresh all-time highs of 35,523.69 and 41,548.63, respectively. But both erased their gains and ended in the red. 

According to Vinod Nair, Head of Research at Geojit Financial Services, the market achieved an all-time high, driven by robust domestic GDP growth. Despite the RBI maintaining policy status quo, an upgraded GDP growth forecast for FY24 (6.5% to 7%) boosted investor confidence.

"Measures to address the liquidity deficit, including the reversal of SDF & MDF facilities, positively impacted financials, leading to a 5% gain in Nifty Bank for the week. IT, consumer, auto, and realty sectors performed well due to valuation comfort, festive momentum, and a strong uptick in residential sales. Mid & small caps continued to outperform, driven by a healthy economic outlook, strong Q2 earnings, and corrections in oil prices," explained Nair.

Also Read: RBI MPC Meeting: Repo rate unchanged; growth forecast raised; 7 key highlights of December policy meeting

Stocks to buy next week - Sumeet Bagadia

On stocks to buy next week, Sumeet Bagadia recommended three shares — Infosys Ltd, India Cement Ltd, and Titan Company Ltd. 

Here we list out full details in regard to Sumeet Bagadia's stock recommendations:

Infosys Ltd

According to Bagadia, Infosys is currently trading at 1,491.15, has recently broken out above 1,475 and formed a rounding bottom pattern on the daily chart. The immediate resistance is near the 1,518 level, and the current price is exhibiting strong bullish momentum, expected to continue towards the 1,580 level. On the flip side, there is strong support near 1,430.

Moreover, Infosys is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating robust bullish momentum and suggesting potential for further upward price movement. The Relative Strength Index (RSI) is presently at 64, showing an upward trajectory and indicating increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively suggest that Infosys may have the potential to reach a target price of 1,580 in the near term, explained Bagadia.

Also Read: JPMorgan analysis predicts a surge in stock market worry gauge in 2024

To manage risk effectively, it is advisable to set a stop-loss (SL) at 1,430 to safeguard the investment in the event of an unexpected market turn. A prudent strategy would be to consider buying on dips at levels of 1,450 and 1,440.

Overall, considering the technical analysis and current market conditions, Infosys presents a promising buying opportunity for those aiming for a 1,580 price target, provided that prudent risk management measures are in place.

India Cement Ltd

Sumeet stated that India Cement is currently trading at 271.1, and has recently broken out above 270 and formed a cup and handle pattern on the Weekly chart. The immediate resistance is near the 283 level, and the current price is exhibiting strong bullish momentum, expected to continue towards the 300 level. On the flip side, there is strong support near 250.

Moreover, India Cement is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating robust bullish momentum and suggesting potential for further upward price movement. The Relative Strength Index (RSI) is presently at 83.53, showing an upward trajectory and indicating increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively suggest that India Cement may have the potential to reach a target price of 300 in the near term, explained Sumeet.

Also Read: Global Market at 2023 Highs: Wall Street soars amid economic speculations

"To manage risk effectively, it is advisable to set a stop-loss (SL) at 250 to safeguard the investment in the event of an unexpected market turn. A prudent strategy would be to consider buying on dips at levels of 265 and 255.

Overall, considering the technical analysis and current market conditions, India Cement presents a promising buying opportunity for those aiming for a 300 price target, provided that prudent risk management measures are in place," advised Bagadia.

Titan Company Ltd

According to Bagadia, Titan, currently is trading at an all-time high of 3,634.65, exhibits a strong uptrend characterised by higher highs and higher lows. This suggests a robust bullish momentum in the stock. For positional traders, it is recommended to hold the position with an immediate support level identified at 3,450. A stop-loss at 3,460 and a secondary stop-loss at 3,390 are advised to manage potential risks.

Moreover, Titan is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating sustained bullish momentum. The Relative Strength Index (RSI) is currently at 73.72, indicating an upward trajectory and heightened buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) displays a positive crossover, further supporting the bullish outlook.

In consideration of these technical indicators, Titan appears poised for further upward movement, with a potential target price of 3,800 in the near term, explained Sumeet. 

Also Read: FIIs pump over 9,000 crore in Indian equities this week, DIIs net sellers in 3 sessions: What's behind this trend?

"To manage risk effectively, it is prudent to set a stop-loss at 3,450 to protect the investment in case of an unexpected market reversal. A strategic approach involves considering buying opportunities on dips at levels of 3,550 and 3,500.

In conclusion, Titan presents an attractive buying opportunity based on technical analysis and current market conditions. However, investors should exercise caution and adhere to sound risk management practices to navigate potential market fluctuations successfully," advised Bagadia.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

 

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Published: 09 Dec 2023, 09:42 AM IST
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