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

Stock market strategy for Monday

Sumeet Bagadia, Executive Director at Choice Broking believes that Indian stock market is showing signs of improvement. The Choice Broking expert went on to add that Nifty 50 index has closed above 19,000 levels after participatory rally on Friday. But, he said that bullish trend can be assumed only after the 50-stock index breaches 19,200 hurdle on closing basis. On stocks to buy on Monday, Sumeet Bagadia recommended three stocks to buy next week — Tata Motors, HCL Technologies and Axis Bank.

Here we list out full details in regard to Sumeet Bagadia’s stock recommendations:

1] Tata Motors: Buy at ₹641, target ₹680, stop loss ₹624.

Tata Motors share is currently trading at ₹641.05. On the daily chart, the price is establishing new higher highs and higher lows, indicating a strong uptrend. If the price closes above ₹652, it is likely to experience further upward movement, with target levels at ₹680. At the moment, the stock is trading within a range bound by ₹609 and ₹652.

Furthermore, Tata Motors share price is trading above critical Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This confirms its bullish momentum and suggests the potential for sustained upward price movement. The Relative Strength Index (RSI) currently stands at 51.35 and is trending upwards, indicating an increase in buying momentum. Technical indicators suggest that Tata Motors shares may have the potential to reach a target price of ₹680 in the near term.

To effectively manage risk, it is advisable to set a stop-loss (SL) at ₹624 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, Tata Motors share appears to offer an attractive buying opportunity for those aiming for a ₹680 price target, provided that prudent risk management measures are in place.

2] HCL Technologies: Buy at ₹1268, target ₹1347, stop loss ₹1212.

HCL Technologies share price presently trading at ₹1268.70. On the daily chart, the price has formed a double bottom pattern with a strong reversal from the bottom and significant volume support. If the price closes above ₹1280, the stock is poised to gain momentum with a short-term target of ₹1347. On the flip side, key support levels are at ₹1200 and ₹1210, while immediate resistance levels are at ₹1300 and ₹1320.

Moreover, HCL Tech share is trading above crucial Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, affirming its bullish momentum and suggesting the potential for sustained upward price movement. The Relative Strength Index (RSI) currently stands at 56.5 and is trending upwards, indicating an increasing buying momentum. Technical indicators indicate that HCL Technologies share price may have the potential to reach a target price of ₹1347 in the near term. Additionally, the Stochastic Relative Strength Index (Stoch RSI) recently exhibited a positive crossover from the oversold region. This combination of technical indicators further supports the notion that HCLTECH may have the potential to reach a target price of ₹1347 in the near term.

To effectively manage risk, it is advisable to set a stop-loss (SL) at ₹1212 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, HCL Tech share appears to offer an attractive buying opportunity for those aiming for a ₹1347 price target, provided that prudent risk management measures are in place.

3] Axis Bank: Buy at ₹1002, target ₹1065, stop loss ₹985.

Axis Bank share price recent price movements and technical indicators suggest a positive outlook for the stock. The stock’s ability to rebound from a support level at ₹955 is a clear demonstration of investor interest at that price point, indicating underlying strength. Currently trading around ₹1002.75, it has managed to recover from the support level, which is an encouraging sign for potential upward momentum.

Furthermore, the fact that Axis Bank share price is trading above key moving averages is another bullish indicator. Moving averages are widely used in technical analysis to gauge a stock’s trend, and trading above them typically signals a positive sentiment in the market. While a minor hurdle is noted at the ₹1015 level, it’s seen as a relatively small resistance that the stock may easily overcome. If Axis Bank share price manages to surpass this level, it is expected to continue on an upward trajectory, potentially offering opportunities for investors and traders to benefit from the stock’s strength and positive market sentiment. However, as with all investments, it’s essential to conduct thorough research and consider potential risks before making any trading decisions.

We anticipate that Axis Bank share price will rise towards ₹1065 based on the research above, thus we advise purchasing it at the CMP of ₹1002.75. It can also be added up to 985 with a stop loss of ₹955.

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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Updated: 28 Oct 2023, 11:26 AM IST