Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday

Sumeet Bagadia, Executive Director at Choice Broking believes that Indian stock market is in uptrend and ‘buy on dips’ would be an idea strategy. However, he advised positional and short term investors to remain vigilant about the Q4 results as it would help them maintain stock specific trade and investment strategy. Asked about stocks to buy when stock market opens after the weekend holidays, Sumeet Bagadia of Choice Broking recommended three stocks to buy on Monday — Hindustan Unilever Ltd (HUL), Polycab and Cipla.

Sumeet Bagadia listed out following details in regard to those buy or sell stocks:

1] Hindustan Unilever Ltd or HUL: HINDUNILVR or HUL share price is currently trading near ₹2623, indicating a higher high higher low formation on the daily chart. Strength is shown by the RSI indicator’s current trading range of 68.48 levels. The stock is currently trading above all of the key moving averages. The Bollinger band continues to expand on the weekly chart, with the price trading above the band’s center line, indicating the stock’s strength.

A small resistance is placed near ₹2650 levels; if the stock surpasses this level, it may move towards 2760 levels and higher. With a medium-term target price of 2760, Sumeet Bagadia advised purchasing HINDUNILVR at the CMP of ₹2620. It can also be accumulated close to ₹2570 levels. If the price closes below 2500, our analysis will be regarded as being invalid, said Sumeet Bagadia.

2] Polycab: Polycab share price is currently trading at all-time highs of ₹3389, with a daily breakout over ₹3360 signaling strength. The stock is currently trading above all of the important moving averages. The stock has a solid support foundation near ₹3200. Polycab can be bought on every drop because the breakout is being supported by massive volumes.

A weekly closing at all-time high levels always suggests that the stock is strong. After a squeeze, the Bollinger band continues to grow on the weekly chart, with the price trading near the band’s upper line. A break of the higher line on the band will bring the stock upward.

Sumeet Bagadia recommended purchasing Polycab shares at the current market price of ₹3389 with a medium-term target goal of ₹3620. It can also be accumulated near to ₹3320 levels. If the price closes below ₹3200, the analysis will be considered invalid, Bagadia said.

3] Cipla: Cipla share price is currently trading at ₹937, demonstrating a consistent upward trend within a positive rising channel. This bullish movement is further supported by its trading position above its short-term moving averages of 20 and 50, indicating a favorable short-term momentum.

Additionally, the Relative Strength Index (RSI) stands at 61 and is trending upward, suggesting increasing buying pressure and positive investor sentiment.

Furthermore, Cipla has recently surpassed a significant trendline resistance, which had been acting as a formidable supply zone since October of the previous year.

This breakout is a strong indication of a potential upward surge in the stock’s price. Considering the aforementioned technical indicators and breakout, it appears to be an opportune time to consider purchasing Cipla at its current market price for the target range of ₹980 to ₹1005. Our Views will be negated below ₹900, Choice Broking expert said.

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.