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

Stock market next week: Sumeet Bagadia of Choice Broking believes that Nifty 50 index has support placed at 19,600 levels. (MINT)Premium
Stock market next week: Sumeet Bagadia of Choice Broking believes that Nifty 50 index has support placed at 19,600 levels. (MINT)

Buy 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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Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Published: 23 Sep 2023, 01:54 PM IST
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