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 — Asian Paints, Dr Reddy's Laboratories and Grasim Industries
Buy or sell stocks: After remaining net buyers for two straight sessions, FII turned net sellers again on Friday. FIIs sold out Indian shares worth ₹477 crore on Friday that turned the tide in bears' favour on last session of the week gone by.
Nifty 50 index lost 33 points and ended at 19,730 levels, BSE Sensex went down 187 points and closed at 65,794 mark while Nifty Bank index corrected 577 points and finished at 43,583 levels. Broad market indices ended minorly in the positive even as the advance decline ratio, though positive at 1.16:1, dipped over the previous day.
Stock market strategy for Monday
Sumeet Bagadia, Executive Director at Choice Broking believes that Nifty 50 index is facing resistance at 19,800 to 19,850 zone. Choice Broking expert went on to add that overall bias of Indian stock market is positive till Nifty is trading above 19,650 levels. On stocks to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday — Asian Paints, Dr Dr Reddy's Laboratories and Grasim Industries.
Sumeet Bagaia's stock recommendations
1] Asian Paints: Buy at ₹3169, target ₹3330, stop loss ₹3085.
Asian Paints share is currently trading at ₹3168.90 levels. Asian Paints share price has shown a sharp bounce from the support of ₹3085 levels which is also close to its 20 Day EMA levels. The stock has also formed a two bullish candle on weekly charts after forming doji candle at the support levels. We can witness a small resistance of ₹3230, once stock closes above its resistance, the stock shall move towards the further resistance of ₹3310 levels.
The RSI indicator is also comfortably trading at 62 levels which show the strength for the stock to move upwards. ASIANPAINT is currently trading above all the important moving averages.
We recommend buying Asian Paints shares at CMP of 3168.90 levels. It can also be purchased near ₹3125 with a medium-term target price of ₹3310. Our analysis will be deemed invalid if the price closes belowRs 3085 levels.
2] Dr Reddy's Laboratories: Buy at ₹5611, target ₹6055, stop loss ₹5380.
Dr Reddy share is currently trading at ₹5611.55 and has recently experienced a breakout of the daily trend line with robust volume. If the price surpasses ₹5665, it could potentially gain bullish momentum. It's prudent to consider buying opportunities around the ₹5500 level in the event of any corrections.
Additionally, Dr Reddy's Laboratories shares' technical indicators are generally bullish. The stock has closed above key moving averages, including the 50-day, 100-day, and 200-day Exponential Moving Averages (EMA), signalling strength across various timeframes. The Relative Strength Index (RSI) stands at 61, suggesting balanced momentum with room for further price appreciation.
In summary, with a solid foundation, strong moving average performance, and robust momentum, Dr Reddy share appears well-positioned for a bullish trajectory. To prudently manage risk, it is advisable to set a stop-loss (SL) at ₹5380. This precaution will help protect your investment in case of an unexpected market reversal. Traders and investors may want to explore potential long positions, while also being prepared to buy on dips around ₹5500. The short-term target range could be ₹5840 and ₹6055.
3] Grasim Industries: Buy at ₹1972, target ₹2077, stop loss ₹1910.
Grasim share price is currently trading at ₹1972, having demonstrated notable strength in its technical indicators. The stock has successfully closed above its short, mid, and long-term moving averages, specifically the 50, 100, and 200 EMA, indicative of a positive trend.
The Relative Strength Index (RSI) stands at 62, suggesting a healthy momentum without entering overbought territory. Additionally, the Average Directional Index (ADX) registers a moderately strong reading of 21, indicating a trend in progress.
With a sideways to positive bias, Grasim share price exhibits characteristics of a potential uptrend. The stock recently concluded a consolidation phase and holds the promise of a substantial upside once the critical resistance level of ₹2000 to ₹2015 is breached. In consideration of these technical factors, the current market conditions present a favourable buying opportunity at the current level of ₹1972.
A prudent strategy for investors may involve initiating a long position with a stop-loss set at ₹1910 to manage potential downside risks. The suggested target for this trade is ₹2077, reflecting the anticipated upward movement based on the technical analysis.
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 decision.
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