Buy or sell: Sumeet Bagadia recommends three stocks to buy next week
Buy or sell stocks: Indian stock market plunged, an all-round sell off on Friday tracking weak global cues. NSE Nifty lost 120 points and closed at 19,265, BSE Sensex shed 365 points and ended at 64,886 levels while Bank Nifty index corrected 264 points and finished at 44,231 mark. Nifty Mid-cap Index underperformed the Nifty with a large margin by falling 0.82 per cent in today’s session. Nifty Mid-cap 100 and Small cap 100 Index witnessed massive profit booking from highs, these indices fell by 0.82 per cent and 0.41 per cent respectively on the closing.
Stock market strategy for next week
Sumeet Bagadia, executive Director at Choice Broking believes that Nifty has breached crucial support placed at 19,270 and now it has immediate support placed at 19,100 to 19,050 levels. On the upper side, Nifty today has hurdle placed at 19,375 to 19,400 levels. On stocks to buy next week Sumeet Bagadia recommended three shares — Asian paints, Bajaj Finserv and Bharti Airtel.
Stocks to buy
1] Asian Paints: Buy at ₹3255, target ₹3390, stop loss ₹3170.
Based on a comprehensive technical analysis of Asian Paints share, it is suggested that a potential trading opportunity could be considered. The stock is currently trading at 3255, having established a sturdy support level around ₹3150. Notably, Asian Paints has exhibited a favourable breakthrough above its, 50-day, 100-day and 200-day Exponential Moving Averages (EMA), signifying a positive shift in its trend dynamics.
Furthermore, the Relative Strength Index (RSI) currently stands at 47 and has recently undergone a positive crossover, indicating an increasing momentum in favour of the stock’s upward movement. In the midst of a challenging market environment, Asian Paints has demonstrated notable resilience, underpinned by substantial trading volumes.
2] Bajaj Finserv: Buy at ₹1504, target ₹1600, stop loss ₹1450.
Bajaj Finserv share is currently trading at ₹1503.90 levels. The stock has bounced from the strong support of ₹1450 levels. The stock has formed the Bullish Engulfing pattern on weekly charts, indicating bullishness. On daily charts RSI is trading around 46 levels, indicating strength. After finding support in the lower band of the Bollinger band, the stock has bounced towards the middle band, and if it can retain above ₹1515, which is also the middle band of the Bollinger band and the 50 Day EMA, it can move towards the target price of ₹1600.
3] Bharti Airtel: Buy above ₹882, stop loss ₹875, target ₹920 to ₹930.
Bharti Airtel share price on a daily timeframe appears to be undergoing a consolidation phase, having rebounded from a previous support zone. This hints at a potential bullish trend continuation. The increasing volume further validates this uptrend. Additionally, the stock finds support from the 50-day Moving Average. Both RSI and MACD indicators support the positive trend. A minor resistance area at ₹880 to ₹882 could be breached, paving the way for substantial upward movement. On the hourly chart, post-reversal, the stock finds multiple supports within a descending channel, enhancing its bullish prospects.
Closing and sustaining above ₹882 will lead towards ₹920 to ₹930 levels in coming weeks. However, on the safer side nearby ₹875 to ₹870 levels would be a better range to enter. SL can be kept as ₹885.
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.
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Updated: 26 Aug 2023, 12:49 PM IST
