BackBuy or sell: Sumeet Bagadia recommends three stocks to buy this week
Buy or sell stocks: Sumeet Bagadia has recommended three stocks to buy on Tuesday — Hero MotoCorp, Dr Reddy's and Metro Brands
PremiumBuy or sell stocks: Amid expectations of partial US shutdown, Indian stock market opened upside and extended its early morning gains further during Friday session. Nifty 50 index gained 114 points and closed at 19,638 levels, BSE Sensex went up 320 points and ended at 65,828 mark whereas Bank Nifty index added 283 points and closed at 44,584 levels. Asian equities gained, led by a rally in Hong Kong on hopes that China’s Golden Week holiday will spur a consumption revival and boost sentiment marred by the country’s property sector crisis.
Intraday trading strategy for next week
Sumeet Bagadia, Executive Director at Choice Broking believes that pull back in Indian stock market on first day of October series has improve the market bias as Nifty 50 index managed to sustain above 19,550 to 19,500 support zone. Choice Broking expert went on to add that relief rally witnessed on Friday sesion may become a fresh bull trend on Dalal Street once Nifty closes above 19,850 to 19,900 resistance zone.
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On stocks to buy next week, Sumeet Bagadia recommended three shares for Tueday — Hero MotoCorp, Dr Reddy's and Metro Brands.
Stocks to buy next week
Here we list out full details in regard to Sumeet Bagadia's stock picks for next week:
1] Hero MotoCorp: Buy at ₹3057, target ₹3217, stop loss ₹2955.
Hero MotoCorp share currently stands at ₹3057, displaying a commendable adherence to a steadfast trendline support since June, reflecting its resilience in the market. The recent bounce off this support level indicates a promising surge for the stock. Additionally, Hero MotoCorp has convincingly closed above key short, mid, and long-term moving averages, including the 20, 50, 100, and 200-day EMAs, signaling a robust upward trajectory.
The Relative Strength Index (RSI) holding steady at 55, along with an Average Directional Index (ADX) of 24, further supports the notion of a favorable position for potential upward movement.
Given these promising indicators, a strategic buy position at the current price of ₹3057 is advisable, with a target set at ₹3217. To prudently manage risk, it is recommended to establish a stop-loss at ₹2955.
2] Dr Reddy's Lab: Buy at ₹5587, target ₹5920, stop loss ₹5410.
Dr Reddy share is currently trading at ₹5587. After consolidating within the support price breakout range of ₹5600 to ₹5415, it underwent a significant correction and reversed its price trajectory from the bottom, forming a robust bullish candle at the support level. Moreover, Dr Reddy share price is presently trading above critical Exponential Moving Averages (EMAs), including the 50-day, 100-day, and 200-day EMAs, reinforcing its bullish momentum and potential for further upward price movement.
The Relative Strength Index (RSI) currently stands at 48.80 and is trending upwards, indicating a growing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has recently experienced a positive crossover from the oversold region. This combination of technical indicators suggests that Dr Reddy may have the potential to reach a target price of ₹5920 in the near term.
To effectively manage risk, it is advisable to implement a stop-loss (SL) at ₹5410 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, Dr Reddy share appears to present an attractive buying opportunity for those aiming for a ₹5920 price target, provided that prudent risk management measures are in place.
3] Metro Brands: Buy at ₹1126.25, target ₹1200, stop loss ₹1100.
Metro Brands share is currently trading at ₹1126.25, breaking out of a long consolidation range between ₹1020 and ₹1120 in a Rectangle pattern, closing at ₹1126.25 with substantial trading volume. Furthermore, Metro Brands share is trading above critical Exponential Moving Averages (EMAs), including the 50-day, 100-day, and 200-day EMAs, which reinforces its bullish momentum and potential for further upward price movement.
The Relative Strength Index (RSI) currently stands at 62 and is trending upwards, indicating a growing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) recently experienced a positive crossover from the oversold region. This combination of technical indicators suggests that Metro Brands share may have the potential to reach a target price of ₹1200 in the near term.
To effectively manage risk, it is advisable to implement a stop-loss (SL) at ₹1100 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, Metro Brands share appears to present an attractive buying opportunity for those aiming for a ₹1200 price target, provided that prudent risk management measures are in place.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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