Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday

Buy or sell stocks: Amid weak US labour data spiked up speculations about US Fed rate pause in upcoming FOMC meeting scheduled next week, Indian stock market extended its losing streak for second straight session on Friday. NSE Nifty corrected 71 points and closed at 18,563 levels, BSE Sensex lost 223 points and closed at 62,625 mark whereas Bank Nifty index went off 6 points and finished at 73,989 levels. Broad market indices closed flat, outperforming the Nifty even as the advance decline ratio fell to 0.86:1.

Stock market strategy for next week

Sumeet Bagadia, Executive Director at Choice Broking believes that Nifty today has strong support placed at 18,450 whereas it is facing resistance at 18,800 levels and it may scale to new peak after breaching the current resistance on closing basis. However, Choice Broking expert maintained that stock market trend has turned cautious after Nifty's close below 18,600 on Friday session and trend may become further weak if it fails to sustain above 18,450 levels. On stocks to buy next week, Sumeet Bagadia recommended three stocks that may give whopping returns in upcoming week and those three stocks are Delta Corp. BEL and Samvardhana Motherson.

Here we list out full details in regard to those three stocks picks for next week:

1] Delta Corp: Delta Corp share price is displaying strength in the market, with the stock currently quoting at ₹245. Delta Corp share has a significant support level around ₹233, and a successful breach of this level could trigger a reversal in the stock's price movement. Moreover, Delta Corp is trading above key exponential moving averages (EMAs) of 20, 50, 100, and 200, indicating sustained strength in the stock.

The Relative Strength Index (RSI) is at 67, further supporting the positive momentum. A close above ₹250 has the potential to propel Delta Corp to a new 52-week high of ₹262.

2] BEL: BEL share price is currently trading near ₹120.35 apiece, which is the all–time high closing for the stock. The stock has formed a strong bullish candle on weekly charts. The stock is currently trading above all of the key moving averages. The Bollinger band continues to expand on the daily chart, with the price trading above the band's upper line, indicating the stock's strength.

With a medium-term target price of ₹129, we advise purchasing BEL at the CMP of ₹120.35. It can also be accumulated close to ₹116 levels. If the price closes below ₹113, our analysis will be regarded as being invalid.

3] Samvardhana Motherson: Samvardhan Motherson share is currently trading at ₹81.75 levels. A small resistance is witnessed near ₹82.55 levels. Once stock surpasses the above-mentioned resistance it can move further towards ₹90 levels and above. The stock has a strong support near ₹79 levels and it can be accumulated near the mentioned levels. The RSI indicator is comfortably trading near to 67 levels indicating strength. The Bollinger band has shown a squeeze on daily chart and price is trading above the middle band indicating strength.

Based on the above analysis we recommend buying MOTHERSON at CMP of ₹81.75 levels. It can be also accumulated at ₹79 levels for the target of ₹90 and above with a stop loss of ₹76.

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.