Buy or sell: Sumeet Bagadia recommends three stocks to buy next week

Intraday trading strategy for stock market next week

Sumeet Bagadia, Executive Director at Choice Broking believes that market trend has turned cautious after sell off on two days in a row. Choice Broking expert said that Nifty today has immediate support placed at 19,550 whereas it is facing hurdle at 19,750 levels. bullish or bearish trend can be assumed on breakage of either side of the range. On stocks to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday — NMDC, Adani Ports and Marico.

Sumeet Bagadia’s stocks to buy next week

1] NMDC: Buy at ₹112.55, target ₹117, stop loss ₹110.

NMDC share price has formed a strong support near ₹110.70 levels, which is also 20 Day EMA. Currently, the stock is trading around ₹112.55 which are above its short term (20 Day) and medium term (50 Day) and long term (200 Day) Exponential moving averages. A small hurdle is visible on charts near to ₹114.65 levels, which is also a recent top. Once the stock overcomes the previously mentioned resistance, it will be able to move closer to the higher levels of ₹117.

The momentum indicator RSI is also trading comfortably at 64 levels indicating strength. The stock has bounced above the middle band of the Bollinger band and we can also witness an expansion of the band. Once stock approaches the upper band which is close to ₹114.65 we can witness sharp upmove towards the target of 117 and above.

Investors and traders can buy NMDC at the current market price of ₹112.55. It can also be added up to ₹111 with a proper stop loss of ₹110 for a target price of 117.

2] Adani Ports: Buy at ₹755, target ₹800, stop loss ₹720.

Adani Ports share price, appears to have undergone a period of consolidation between the range of ₹714 to ₹760 over the last two months, which indicates stability in the stock’s price movement. The potential for an upward trend seems promising, especially if the stock manages to break out above the ₹760 level with substantial trading volumes. Moreover, the fact that it is currently trading above short-term, mid-term, and long-term Exponential Moving Averages (EMA) indicates positive momentum in the stock.

At the current market price (CMP) of ₹755, some investors may view Adani Ports as a potentially attractive investment opportunity. If the breakout occurs, the stock could witness further gains and reach the target levels of ₹792 to ₹800. However, investors should be cautious, and this view may no longer hold if the stock’s price falls below ₹720.

3] Marico: Buy at ₹565, target ₹600 to ₹608, stop loss ₹554.

On the Daily Chart, Marico share price stock is in uptrend and it has good volume participation along with the breakout of falling trendline. It has managed to make higher highs and higher lows in a larger time frame as well. Bollinger Band expansion is seen along with Price action suggesting that the volatility will take the price to higher levels. Stock is trading above all its short-term, medium-term and long-term moving averages. Positive crossover is indicated in RSI and MACD in momentum indicators.

Hence, based on the above technical structure one can initiate a long position at CMP ₹574.3. However, on the safer side nearby ₹565 levels would be a better range to enter. Closing and sustaining above ₹578 will lead towards ₹600 to ₹608 levels in coming days. SL can be kept as ₹554.

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.

Updated: 29 Jul 2023, 02:10 PM IST