Buy or sell: Sumeet Bagadia recommends three stocks to buy next week
Among sectors, FMCG, oil & gas and pharma index gained over 1 per cent whereas profit booking were seen in PSU banks, private banks and media indices. PSU Bank index lost the most shed over 3 per cent.
Stock market strategy next week
Sumeet Bagadia, Executive Director at Choice Broking believes that Nifty 50 index has taken support at 21,100 levels and the 50-stock index is trying to pull back after recent profit booking trigger. The Choice Broking expert went on to add that Nifty is facing hurdle at 21,500 to 21,550 zone and bullish or bearish trend can be assumed on breakage of either side of the range only.
On stocks to buy next week, Sumeet Bagadia recommended three stocks for next week and those stocks are DLF, Infosys and Sterling and Wilson Renewable Energy or SWSOLAR.
Stocks to buy next week
Here we list out full details of Sumeet Bagadia’s stock picks for next week:
1] DLF: Buy at ₹716, target ₹765, stop loss ₹672.
DLF share price is currently trading at ₹715.95 levels, having demonstrated a robust rebound from its support at ₹672, which closely aligns with its 20-day Exponential Moving Average (EMA). Furthermore, the stock is trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels, reflecting overall strength in its trend. An encouraging development is the successful breach of a prior resistance zone between ₹705 to ₹710 levels. This breakout has propelled DLF to trade at all-time high levels, showcasing the stock’s bullish momentum. The Relative Strength Index (RSI), currently at 72 levels, has moved higher, providing additional confirmation of the stock’s strength in the current phase.
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In essence, DLF’s price action, combined with its position relative to key moving averages and the successful breakout, presents a positive technical scenario. Traders and investors may find this development noteworthy, potentially prompting further interest in the stock, though prudent risk management practices are advised in navigating market fluctuations. Based on the above analysis we recommend buying DLF at CMP of ₹715.95, It can also be added up to ₹690 levels for the target of ₹765. Our analysis will be deemed invalid if stock moves below ₹672 levels.
2] Infosys: Buy at ₹1564, target ₹1665, stop loss ₹1510.
Infosys shares, currently trading at ₹1564, has recently witnessed a breakout of a rounding bottom pattern accompanied by significant trading volume. The current price indicates strong bullish momentum, with anticipations of a sustained upward movement towards the ₹1665 level. Conversely, substantial support is observed near ₹1510.
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Moreover, Infosys share is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating robust bullish momentum and suggesting potential for further upward price movement. The Relative Strength Index (RSI) is presently at 65.4, showing an upward trajectory and indicating increasing buying momentum.
Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively suggest that Infosys shares may have the potential to reach a target price of ₹1665 in the near term.
To manage risk effectively, it is advisable to set a stop-loss (SL) at ₹1510 to safeguard the investment in the event of an unexpected market turn. A prudent strategy would be to consider buying on dips at levels of ₹1524. Overall, considering the technical analysis and current market conditions, INFY presents a promising buying opportunity for those aiming for a ₹1665 price target, provided that prudent risk management measures are in place.
3] SWSOLAR: Buy at ₹440.15, target ₹475, stop loss ₹420.
SWSOLAR share is presently trading at ₹440.15 levels, having recently provided a compelling technical signal with a strong breakout above the crucial ₹420 levels. This breakout serves as a robust indicator of the stock’s underlying strength. Additionally, SWSOLAR share is currently positioned above its short-term (20-day), medium-term (50-day), and long-term (200-day) Exponential Moving Average (EMA) levels, reaffirming the positive sentiment.
The Momentum indicator, as measured by the Relative Strength Index (RSI), has exhibited a notable characteristic by cooling off from the overbought zone and is presently trading at 70 levels. This RSI movement underscores the stock’s strength while avoiding excessive overbought conditions. Looking ahead, any potential dips in the stock’s price could be viewed as buying opportunities, given the overall positive technical setup. Notably, on the daily chart, a modest resistance zone near ₹452 levels may be encountered. A successful breach of this level would likely pave the way for further upward movement, setting a target around ₹475 levels.
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Investors and traders might find this technical analysis insightful for potential entry or exit points, but it’s essential to exercise prudence and consider other relevant factors in making informed decisions in the dynamic stock market environment. Based on the above analysis we recommend buying SWSOLAR sharess at CMP of ₹440.15, it can also be added up to ₹430 levels for the target of ₹475. Our analysis will be deemed invalid if stock moves below ₹420 levels.
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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Published: 23 Dec 2023, 11:48 AM IST
