BackBuy or sell: Sumeet Bagadia recommends three stocks to buy next week
Buy or sell stocks: Sumeet Bagadia has recommended three stocks to buy on Monday — SBI, M&M and Asian Paints
PremiumBuy or sell stocks: Following weak global market sentiments, Indian stock market ended lower for fourth day in a row. Nifty 50 index lost 68 points and closed at 19,674 levels, BSE Sensex corrected 221 points and ended at 66,009 mark whereas Bank Nifty index finished 11 points lower at 44,612 levels. Small-cap index ended marginally in the positive even as the advance decline ratio improved to 0.99:1.
Stock market strategy for next week
Sumeet Bagadia, Executive Director at Choice Broking believes that Dalal Street sentiments have further weakened after Nifty 50 index closed below 19,700 levels on Friday. Choice Broking expert went on to add that Nifty today has now crucil support placed at 19,600 levels and on breaching this support, there can be more correction expected in the Indian stock market. On stocks to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday and those three shares are State Bank of India (SBI), Asian Paints and Mahindra & Mahindra (M&M).
Stocks to buy on Monday
Here we list out important details in regard to those Sumeet Bagadia's stock picks for next week:
1] SBI: Buy at ₹598, target ₹630, stop loss ₹578.
An analysis of SBI share price suggests several key points for traders and investors to consider. Firstly, the stock has demonstrated a robust support level at ₹584, which implies that it has consistently found buying interest around this price point in the past. This support level aligns closely with both the 50-day and 20-day EMA, reinforcing its significance.
Currently trading at ₹598.15, SBIN is in proximity to a smaller resistance level at ₹608. Overcoming this resistance is seen as a positive signal, potentially paving the way for the stock to reach its target price of ₹630, which also represents a historical all-time high.
The Relative Strength Index (RSI) at 57 indicates strength, suggesting that the stock is not overbought or oversold at the moment. Additionally, SBIN is trading above all major moving averages, further confirming its strength.
Based on the above technical analysis we recommend buying SBIN at CMP of ₹598.15 and can be added up to ₹585 with a SL of ₹578 for the target of ₹630.
2] Asian Paints: Buy at ₹3275, target ₹3410, stop loss ₹3185.
Asian Paints shares are is currently trading at ₹3274.85 levels. The stock recently experienced a correction from the resistance level at ₹3305, but it exhibited a significant rebound from the initial support level of ₹3185. This rebound is reflected in the formation of a bullish candlestick pattern on the daily charts, suggesting renewed buying interest.
The next potential move for ASIANPAINT appears to be contingent on surpassing the resistance level at ₹3305. If this resistance is breached, the stock could aim for the next resistance point at ₹3410.
The Relative Strength Index (RSI) at 54 indicates a moderate level of strength, implying that there is room for the stock to move upwards without being overbought. Additionally, ASIANPAINT is currently trading above all significant moving averages, underscoring its relative strength.
We recommend buying ASIANPAINTI at CMP of ₹3274.85 it can also be added up to ₹3220 with a medium-term target price of ₹3410. Our analysis will be deemed invalid if the price closes below Rs3185 levels.
3] M&M: Buy at ₹1607, target ₹1780, stop loss ₹1540.
M&M share price is currently trading at ₹1607.15, has recently exhibited signs of consolidation within the range of ₹1570 to ₹1670 on the daily chart. Notably, the price has formed a rounding bottom pattern breakout and a bullish piercing candlestick pattern, following a prior fake breakout. Over the past week, the stock has demonstrated robust support at the ₹1540 level, indicating a noteworthy degree of price stability. Additionally, M&M is presently trading above critical Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This underscores its bullish momentum and suggests the potential for further upward price movement.
The Relative Strength Index (RSI) is currently at 56.80 and exhibits an upward trajectory, indicating an increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) is displaying a positive crossover. This combination of technical factors suggests that M&M may have the potential to achieve a target price of ₹1780 in the near term.
To manage risk, it is advisable to set a stop-loss (SL) at ₹1540 to protect your investment in case the market takes an unexpected turn. Overall, given the technical analysis and current market conditions, M&M appears to be a promising buy opportunity for those targeting a ₹1780 price level, with prudent risk management measures in place.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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