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Business News/ Markets / Stock Markets/  Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — Feb 19
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Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — Feb 19

Buy or sell stocks: Sumeet Bagadia has recommended three stocks to buy on Monday — Dr. Reddy's Laboratories, LT, and Adani Ports

Stock market strategy: The Nifty 50 index has crucial support placed at 21,800 mark and the 50-stock index is set to touch 22,400 and 22,800 levels respectively, Sumeet Bagadia of Choice Broking believes. (MINT)Premium
Stock market strategy: The Nifty 50 index has crucial support placed at 21,800 mark and the 50-stock index is set to touch 22,400 and 22,800 levels respectively, Sumeet Bagadia of Choice Broking believes. (MINT)

Buy or sell stocks: Following strong global market sentiments, the Indian stock market ended higher for the fourth day in a row on Friday. The Nifty 50 index shot up 129 points and finished at 22,040 level, the BSE Sensex surged 376 points and closed at 72,426 mark while the Bank Nifty index ended 165 points up at 46,384 level. 

In the broad market, both small-cap and mid-cap indices outperformed the key benchmark indices even as the advance-decline ratio remained firm at 1.56:1. Large activity was seen in bank, auto, pharma, PSU, and FMCG stocks.

Stock market strategy for next week

Sumeet Bagadia, Executive Director at Choice Broking believes that overall Indian stock market managed to maintain its positive bias after sustaining above the 22,000 level. 

The Choice Broking expert said that Nifty today has crucial support placed at the 21,800 mark and the 50-stock index is now looking ahead to touch 22,400 and 22,800 levels in the short-term time horizon.

Also Read: Gold price dips for second straight week on higher US Fed rate buzz

Stocks to buy: Sumeet Bagadia's stock recommendations

On stocks to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday — Dr. Reddy's Laboratories, LT, and Adani Ports. Here we list out full details regarding Sumeet Bagadia's stock picks:

1] Dr. Reddy's Laboratories: Buy at 6317.15, target 6780, stop loss 6145.

Dr Reddy's share is currently trading near its all-time high at 6317.15, exhibiting a pattern of making fresh higher highs and higher lows on weekly charts, accompanied by substantial trading activity. This pattern indicates that the stock has tremendous momentum. DRREDDY could reach a target price of 6780 soon, making it a good time to buy on dips, especially around 6145.

Furthermore, DRREDDY is trading above major exponential moving averages (EMAs), such as the 20-day, 50-day, and 200-day EMAs. This alignment above these key EMAs strengthens the bullish picture, implying the probability of a protracted upward price rise. To efficiently control risk, set a stop-loss (SL) at 5950. This preventive strategy is critical for protecting your money in the case of an unforeseen market downturn.

In summary, considering the technical analysis and current market conditions, Dr Reddy share price appears to present an appealing purchasing opportunity for investors looking for a price goal of 6780, providing reasonable risk management measures are in place.

2] LT: Buy at 3384, target 3800, stop loss 3240.

LT share price is currently trading at 3384, exhibiting a strong reversal from the bottom level. The price action has formed a bullish engulfing pattern with substantial volume, signaling a bullish reversal following a correction from the top. There is potential for LT to achieve a target price of 3800 in the near term, making it advisable to consider purchasing on dips, particularly around 3300.

Additionally, LT is positioned above key Exponential Moving Averages (EMAs), including the 100-day, and 200-day EMAs. This alignment above these crucial EMAs enhances the bullish outlook, suggesting the possibility of a sustained upward price movement. To effectively manage risk, it is recommended to implement a stop-loss (SL) at 3240. This precautionary measure is crucial to safeguard your investment in the event of an unexpected market reversal.

In summary, considering the technical analysis and current market conditions, LT appears to present an attractive buying opportunity for those aiming for a 3800 price target, provided that prudent risk management measures are in place.

3] Adani Ports: Buy at 1310, target 1520, stop loss 1260.

Adani Ports share is currently trading near its all-time high at 1309.85, showcasing a pattern of establishing new higher highs and higher lows, accompanied by robust trading volume. This trend signals strong momentum in the stock. There is potential for Adani Ports share to attain a target price of 1520 in the near term, making it advisable to consider purchasing on dips, particularly around 1280.

Furthermore, Adani Ports share is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This alignment above these crucial EMAs enhances the bullish outlook, suggesting the possibility of a sustained upward price movement.

To effectively manage risk, it is recommended to implement a stop-loss (SL) at 1260. This precautionary measure is crucial to safeguard your investment in the event of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, Adani Ports share appears to present an attractive buying opportunity for those aiming for a 1520 price target, provided that prudent risk management measures are in place.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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ABOUT THE AUTHOR
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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Published: 17 Feb 2024, 10:37 AM IST
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