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

Buy or sell stocks: On account of strong global market sentiments after better-than-expected Chinese economic data, Indian stock market ended in green terriroty for third straight session. NSE Nifty ended at record close of 20,192 levels after climbing to a new life-time high of 20,222 during Friday deals. BSE Sensex too had a record closing at 67,838 levels after climbing to a new peak of 67,927 mark. Nifty Bank index gained 230 points and closed at 46,231 levels.

Stock market strategy for next week

Sumeet Bagadia, Executive Director at Choice Broking believes that outlook for Indian stock market has further improved as mid-cap and small-cap indices stocks have once again started to participate in current rally. Choice Broking expert said that Nifty today looks poised for near term target of 20,350. On stocks to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday — Bharti Airtel, Mahindra & Mahindra (M&M) and Rainbow.

Here we list out full details in regard to Sumeet Bagadia's stock recommendations for next week:

1] Bharti Airtel: Buy at 936, target 980, stop loss 900.

Bharti Airtel share is currently trading at 936.15 levels suggests a healthy upward momentum. A notable aspect is the consistent formation of higher highs and higher lows on the daily charts, a classical indication of an uptrend. This pattern suggests that buyers are progressively willing to pay more for the stock, reflecting growing confidence in its potential.

Furthermore, the fact that a previous resistance level near 900 has now transformed into a strong support level is a positive development. This breakout indicates that the stock has overcome a significant hurdle, potentially opening the door for further price appreciation.

The stock's positioning above the 20, 50, and 200-day Exponential Moving Averages (EMA) underscores its bullish momentum. The successful closing above these EMA levels strengthens the case for a continued upward movement. Additionally, the volume analysis reveals that the stock has been advancing with strong trading volumes, implying substantial investor interest and confidence.

The stock's overall technical picture, including the uptrend, support-turned-resistance levels, and strong volume, suggests that any dips in the stock's price could represent buying opportunities for investors looking to participate in the ongoing bullish trend.

With a Medium term outlook one can buy Bharti Airtel shares at CMP of 936.15, it can be also added on dips near 920 levels with an SL of 900 for a target price of 980.

2] Mahindra & Mahindra (M&M): Buy at 1600, target 1780, stop loss 1535.

M&M share price presently trading at 1601.10, has formed a rounding bottom pattern, accompanied by robust technical indicators that enhance its appeal to investors. During the past week, the stock has demonstrated strong support at the 1535 level, signaling price stability. Additionally, M&M share is currently trading above critical Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, underlining its bullish momentum and the possibility of further upward price movement.

The Relative Strength Index (RSI) is currently at 60 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 1535 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.

3] Rainbow: Buy at 1025, target 1075, stop loss 985.

Rainbow share price is currently trading at 1025, exhibits promising indicators on the charts. The stock has established a robust support level between 1000 to 1016, from which it has recently demonstrated a substantial rebound. Furthermore, the Relative Strength Index (RSI) stands at 48, indicating positive momentum with a recent crossover.

Additionally, Rainbow is trading above its pivotal moving averages, including the 100, and 200 Exponential Moving Averages (EMAs), underscoring its bullish sentiment.

Given these encouraging signals, it is recommended to initiate a position in Rainbow at the current price of 1025. Investors may consider adding to their position on any pullbacks, particularly down to 1000, to enhance the potential return. The anticipated target for this trade is set at 1075, based on the current technical analysis, keep SL at 985.

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.

Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Updated: 17 Sep 2023, 06:39 AM IST
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