Buy or sell: Sumeet Bagadia recommends three stocks to buy next week
Buy or sell stocks: Following weakness in global market cues due to sell off in technology stocks, Indian stock market snapped its six days winning streak and ended in red zone on Friday. NSE Nifty lost 234 points and closed at 19,745 levels while BSE Sensex nosedived 887 points and closed at 66,684 mark. Bank Nifty index descended 111 points and closed at 46,075 mark. Broad market indices did better than the Nifty and Small-cap index ended 0.13 per cent in the positive even as the advance-decline ratio came in lower at 0.82:1.
Stock market strategy for next week
Sumeet Bagadia, Executive Director at Choice Broking believes that market trend has become cautious after the profit booking trigger and hence immediate support for Nifty today has shifted towards 19,600 and 19,500 levels. Amid Q1 results 2023 season, Sumeet Bagadia advised investors to maintain stock specific trade as stock market is trading at record highs as well. On stocks to buy next week, Sumeet Bagadia recommended three shares for near term.
Here we list out full details in regard to those Sumeet Bagadia’s stock recommendations:
1] Hero MotoCorp: Buy at ₹3102, target ₹3250, stop loss ₹3030.
Hero MotoCorp share price has rebounded from a solid support of ₹3049 levels which is close to 20 Day EMA levels. The stock is currently trading above all the important moving averages, indicating strength. Moreover, it is trading above the middle Bollinger band, and there are positive crossovers in both the RSI and MACD, suggesting a continued bullish trend in the near future. The sustained high trading volume indicates buying interest among short-term traders.
Based on this technical analysis, one could consider entering a long position at the current market price (CMP) of ₹3102.05, for a potential upward movement towards ₹3250 levels in the coming days. To manage risk, a stop-loss (SL) level can be set at ₹3030 levels.
2] ONGC: Buy at ₹170.55, target ₹180, stop loss ₹165.
ONGC share price has consolidated since last 4 days on lower levels and has formed a base near ₹166 levels. The stock has strong base near to ₹166 levels which is also. Currently ONGC is trading at ₹170.55 levels. The stock has given a breakout of a cup and handle pattern on daily charts. The RSI has bounced from lower levels and currently trading around 67 levels which indicates strength. A small resistance is witnessed near ₹172 levels. Once stock crosses the mentioned level it can move towards ₹180 levels and above.
Based on the above analysis we recommend to buy ONGC at CMP of ₹170.55 levels it can also be added near to ₹168 levels for the target of ₹180. If stock closes below ₹165 levels, then our analysis will be deemed invalid.
3] LT: Buy at ₹2586, target ₹2725 to ₹2815, stop loss ₹2515.
LT share price is currently quoting at ₹2586.25. In the daily time frame, the stock is exhibiting a Higher High – Higher Low pattern, indicating a bullish trend that is likely to continue. This observation is supported by the gradual increase in trading volume and the upward movement of prices. Additionally, the stock is currently trading above its 20-day Simple Moving Average, further bolstering the bullish sentiment. Furthermore, RSI and MACD validate the positive trend. These indicators provide additional confirmation of the stock’s upward momentum. On the hourly charts, the stock is following a gradual upward trajectory within a rising parallel channel pattern and has given a breakout. This pattern suggests a sustained bullish outlook in the short term.
Closing and sustaining above ₹2600 will lead prices in the following days towards ₹2725 to ₹2815 levels. SL may remain as ₹2515.
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.
Know your inner investor
Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Download The Mint News App to get Daily Market Updates.
Updated: 22 Jul 2023, 09:28 AM IST
