Buy or sell: Sumeet Bagadia recommends three stocks to buy next week

Buy or sell stocks for next week: Key benchmark indices of the Indian stock market gave up its five days winning streak and ended the last trade session of 2023 on a flattish note amid profit booking in select heavyweights. 

Nifty 50 index remained in negative territory throughout the session and closed with minor loss of 22 points at 21,731 levels. BSE Sensex finished 0.23 per cent lowe at 72,240 levels whereas Nifty Bank index lost 0.45 per cent and ended at 48,292 levels. However, broader market outperformed with Nifty Mid-cap 100 and Nifty Small-cap 100 up 0.8 per cent and 0.6 per cent respectively.

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Stock market strategy for next week

Sumeet Bagadia, Executive Director at Choice Broking believes that Nifty 50 index is facing hurdle at 21,800 to 21,850 zone whereas the 50-stock index has immediate support placed at 21,550 to 21,600 zone. Choice Broking expert maintained that overall Indian stock market bias is still positive and advised investors to maintain 'buy on dips' strategy when market opens next year.

On stocks to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday and those shares are Hindustan Unilever Ltd (HUL), GMR Infra and UltraTech Cement.

Stocks to buy next week

1] HUL: Buy at ₹2664, target ₹2840, stop loss ₹2580.

HUL share price is currently trading at ₹2664. The stock has forming new higher high higher low & rounding bottom breakout, accompanied by significant volume. There are expectations of further upward movement, potentially reaching ₹2840 levels. On the downside, substantial support is evident near ₹2580.

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Furthermore, HUL share price is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 75.45, signaling an upward trajectory and confirming an increase in buying momentum.

Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively support the notion that HUL share price may have the potential to achieve a target price of ₹2840 in the near term. To manage risk effectively, it is advisable to set a stop-loss (SL) at ₹2580 to protect the investment in case of an unexpected market reversal. A prudent strategy involves considering buying opportunities on market dips at levels of ₹2600.

In summary, considering the technical analysis and prevailing market conditions, HUL share price appears to present a promising buying opportunity for those targeting a ₹2840 price objective, contingent upon the implementation of prudent risk management measures.

2] GMR Infra: Buy at ₹80.55, target ₹86, stop loss ₹76.

GMR Infra share price is currently positioned at ₹80.55 levels, demonstrating a resilient technical setup. The stock has recently experienced a bounce from a robust support level, marked by a breakout above 79 levels. Notably, the stock is trading comfortably above its critical moving averages, including the short-term (20-Day), medium-term (50-Day), and long-term (200-Day) EMAs.

An encouraging sign is the RSI (Relative Strength Index) indicator, which, after a retreat from the overbought zone at ₹84, is currently positioned at a comfortable ₹72. This suggests a healthy equilibrium between buying and selling pressures. Any potential dip in the stock towards the ₹79 levels presents a compelling buying opportunity, reinforcing the positive technical outlook.

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In conclusion, GMR Infrastructure exhibits strength in its technical chart patterns, moving averages, and RSI dynamics, offering investors a favorable risk-reward profile and suggesting potential upward movements in the stock.

Based on the above analysis we recommend buying GMR Infra share price at CMP of ₹80.55, It can also be accumulated up to ₹79 levels for the target of ₹86 with a stop loss of ₹76.

3] UltraTech Cement: Buy at ₹10530, target ₹11560, stop loss ₹10,000.

UltraTech Cement share is currently trading at ₹10503. The stock has forming new higher high higher low, accompanied by significant volume. There are expectations of further upward movement, potentially reaching s 11560 levels. On the downside, substantial support is evident near ₹10000.

Furthermore, UltraTech Cement share is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a strong bullish momentum, indicating the potential for continued upward price action. The Relative Strength Index (RSI) stands at 80, signaling an upward trajectory and confirming an increase in buying momentum.

Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively support the notion that UltraTech Cement shares may have the potential to achieve a target price of ₹11560 in the near term. To manage risk effectively, it is advisable to set a stop-loss (SL) at ₹10000 to protect the investment in case of an unexpected market reversal. A prudent strategy involves considering buying opportunities on market dips at levels of ₹10250.

In summary, considering the technical analysis and prevailing market conditions, UltraTech Cement share appears to present a promising buying opportunity for those targeting a ₹11560 price objective, contingent upon the implementation of prudent risk management measures.

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.