Buy or sell: Sumeet Bagadia recommends three stocks to buy next week
Buy or sell stocks: After rallying for seven straight sessions, Indian stock market witnessed profit booking on Friday in the week gone by. NSE Nifty closed 165 points lower at 19,331 levels while BSE Sensex corrected 505 points and ended at 65,280 mark. Bank Nifty slipped below 45,000 levels and ended at 44,925 levels.
Trading strategy for stock market next week
Sumeet Bagadia, Executive Director at Choice Broking believes that Nifty is facing resistance at 19,500 and further upside in the 50-stock index can be expected only when it manages to breach this current hurdle. Choice Broking expert said that Nifty today has immediate support placed at 19,250 while Bank Nifty may witness some more sell off pressure as the index has lost crucial psychological 45,000 level.
Stocks to buy next week
On stocks to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday — Bank of Baroda, Tata Motors and CIPLA.
Here we list out full details in regard to those Sumeet Bagadia’s stock recommendations:
1] Bank of Baroda: Buy at ₹205 to ₹205, target ₹225 to ₹227, stop loss ₹202.
Bank of Baroda share has given breakout of cup and pattern in daily chart indicates strength in charts. The stock is trading above 21 DMA as well. We can see some minor resistance near ₹212 to ₹213 levels. Once the stock breaks through the resistance, it may move higher towards the ₹225 to ₹227 level. The RSI indicator is currently trading at a comfortable level of 60, signifying strength.
On daily charts, we can see a Bollinger band squeeze with the stock trading above the middle line, indicating strength. However, on the safer side nearby ₹205 to ₹206 levels would be a better range to enter. SL can be kept as ₹202.
2] Tata Motors: Buy at ₹619, target ₹650, stop loss ₹590.
Tata Motors share has forming higher high higher low formation on charts. Tata Motors share price is trading at all-time high levels. Currently stock is moving above all important moving averages. The stock has moved higher with strong volumes indicating strength. Any dip in the stock can be a buying opportunity. On a weekly time frame the stock has given a breakout of an inverted head and shoulder pattern indicating bullishness. With a Medium term outlook one can buy Tata Motors at CMP of ₹618.20 with an SL of ₹590 for a target price of ₹650.
3] Cipla: Buy at ₹1021, target ₹1060, stop loss ₹1000.
A crucial support level of 1000 which is 20 day EMA as well as initial support has been retested by CIPLA after it corrected from the level of 1030. The stock’s nearest point of resistance is at ₹1030 itself. The stock may continue to increase towards levels between ₹1060 after it passes the highlighted barrier. RSI indicator is now trading at 63, which supports the stock’s upward movement. Currently the stock is trading above all the important moving averages. The stock has also bounced from the middle band of the Bollinger band and headed towards the upper band. Once stock crosses the upper band which is near to ₹1030 levels the expansion will be witnessed in the Bollinger band which will lead stock higher towards the level of ₹1060 and above.
With a Medium term outlook one can buy CIPLA at CMP of ₹1020.65 it can also be accumulated near to ₹1010 levels, with an SL of ₹1000 for a target price of ₹1060.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 08 Jul 2023, 10:35 AM IST
