Buy or sell: Sumeet Bagadia recommends three stocks to buy next week
On December 1, the Sensex ended 492.75 points, or 0.74%, higher at 67,481.19, while the Nifty 50 rose 134.75 points, or 0.67%, to settle at 20,267.90. The Nifty Midcap 100 index closed 1.10% higher at 43,382.40 and the Nifty Smallcap 100 index closed 0.48% higher at 14,239.30.
Stock market strategy for next week
Analysts believe the stock market next week will be driven by economic data releases from the US, India, and China, while the focus will be on the Reserve Bank of India (RBI) monetary policy meeting. The RBI is widely expected to maintain the status quo on interest rates. Moreover, the trajectory of foreign capital flows will also be key.
On stocks to buy on Monday, Sumeet Bagadia, Executive Director at Choice Broking recommended three shares to buy next week and those three stocks are Asian Paints, State Bank of India (SBI) and Tata Steel.
Also Read: Nifty hits a new record, F&O rollovers signal momentum
Stocks to buy on Monday
As mentioned above, Sumeet Bagadia has recommended three stocks to buy on Monday, here we list out full details in regard to Sumeet Bagadia’s stock recommendations:
1] Asian Paints | Buy at ₹3,173.40 | Target: ₹3,335 | Stop Loss: ₹3,080
Asian Paints has exhibited a recent correction from the resistance at ₹3,230. However, the stock has demonstrated resilience by experiencing a sharp bounce from the initial support around ₹3,110, which also aligns with the 20-Day Exponential Moving Average (EMA). The formation of a bullish candle on daily charts further reinforces positive momentum.
The stock’s potential to move upwards is contingent on it surpassing the resistance at ₹3,230. If this level is breached, it may pave the way for an advance towards the further resistance at ₹3,335. This potential upward movement provides an opportunity for traders and investors to consider.
The Relative Strength Index (RSI) indicator is comfortably trading at 60 levels, indicating strength in the stock and supporting the potential for upward movement.
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Asian Paints is presently trading above all important moving averages, affirming the overall strength of its trend.
We recommend buying Asian Paints at CMP of ₹3,173.40; it can be added on dips up to ₹3,110, with a medium-term target price of ₹3,335. Our analysis will be deemed invalid if the price closes below ₹3,080 levels.
2] SBI | Buy at ₹571.75 | Target: ₹618 | Stop Loss: ₹550
State Bank of India (SBI) is presently trading at ₹571.75. On the daily chart, the price has recently concluded above the 200-day Exponential Moving Average (EMA), indicating a sustained bullish momentum. Furthermore, the stock has consistently found support around the ₹554 level on four occasions, solidifying it as a reliable support zone. The projected trading range for the stock is expected to be between ₹554 and ₹588, with the likelihood of sideways movement within this range.
The Relative Strength Index (RSI) for SBI stands at 51.17, suggesting potential upside. Moreover, the Stochastic RSI exhibits a positive crossover, further reinforcing the bullish sentiment. Notably, the stock is trading above all significant moving averages, underscoring its overall strength.
Considering these technical indicators and prevailing market conditions, it appears to be an opportune moment to consider buying SBI at the current market price of ₹571.75. A reasonable target for this trade could be set at ₹618, with a recommended stop-loss at ₹550 to manage potential risks.
Also Read: Nifty 50 at record high; time to increase exposure to equities or turn cautious?
3] Tata Steel | Buy at ₹130 | Target: ₹138 | Stop Loss: ₹125
Tata Steel share price is currently trading at ₹130.00, which serves as a breakout point. If the price sustains above this level, it may likely experience further upside momentum, targeting levels around ₹135 and ₹138 in the short term. It’s worth noting that ₹125 is an important support level for the stock which is also close to its 20 Day EMA levels.
This breakout is a positive signal for investors, suggesting that the stock has room for further upward movement. Furthermore, the stock’s ability to trade above key moving averages highlights its current strength and positive momentum.
However, it’s essential to consider the Relative Strength Index (RSI), a widely followed momentum indicator, which is currently at 70.
We recommend buying Tata Steel at CMP of ₹130; it can be added on dips up to ₹126.5 with a medium-term target price of ₹138. Our analysis will be deemed invalid if the price closes below 125 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 decisions.
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Updated: 02 Dec 2023, 08:25 AM IST
