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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 — Asian Paints, Dr Reddy's Laboratories and Grasim Industries

Stock market strategy: Nifty 50 index is facing resistance at 19,800 to 19,850 zone, Sumeet Bagadia believes. (MINT)Premium
Stock market strategy: Nifty 50 index is facing resistance at 19,800 to 19,850 zone, Sumeet Bagadia believes. (MINT)

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.

Also read: IREDA IPO: GMP, price, lot size, other details. Check experts' recommendations

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.

Also read: Tata Tech IPO: GMP jumps as issue opens next week. Date, price, other details

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.

Also read: Tata Technologies vs IREDA vs Gandhar Oil Refinery: Which is better?

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. 

Also read: Rakesh Bansal recommends HUL and Indiabulls Housing Finance shares to buy for short term

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.

Also read: Gold price retraces from life-time high. Buy or wait for more dip?

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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Asit Manohar
Chief Content Producer at Live Mint Digital Team
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Updated: 18 Nov 2023, 03:53 PM IST
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