Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday
Buy or sell stocks: Following strong global market sentiments, Indian stock market finished higher on Friday. In fact, NSE Nifty and BSE Sensex closed at record highs respectively. Nifty ended 137 points higher at 18,826 levels whereas BSE Sensex gained 466 points and closed at 63,384 mark. Bank Nifty index finished 494 points higher at 43,938 levels. Broad market indices rose in tandem with the Nifty even as the advance decline ratio rose to 1.74:1.
Stock market strategy for next week
Sumeet Bagadia, Executive Director at Choice Broking believes that Nifty today has strong support placed at 18,650 whereas it is facing resistance at 18,900 levels. The Choice Broking expert went on to add that Nifty today is just 61 points away from its life-time high of 18,887 levels and it may soon climb to a new peak. Bagadia said that Nifty has closed above 18,800 levels, which has negated the negative pattern of bearish engulfing of Thursday.
On stocks to buy next week, Sumeet Bagadia recommended three stocks that may give whopping returns in upcoming week and those three stocks are Mahindra and Mahindra Financial Services (M&MFIN), ITC and Cipla.
Here we list out full details in regard to those three stocks picks for next week:
1] M&MFIN: M&M Finance share is currently trading at ₹305 levels. The stock was facing resistance near ₹299 levels, which was the upper range of the consolidation. The stock has strongly moved on higher side and hence we can witness a breakout on charts. Now any dip in the stock around 300 levels will be a buying opportunity. The stock is trading above all important moving averages indicating strength. The investors holding from lower levels should keep trailing stop loss.
According to the aforementioned technical analysis, we advise buying M_MFIN at CMP of ₹305 levels and should add the stock on dips till ₹300 levels for the target of ₹317. If the stock closes below ₹298, our analysis will be invalid.
2] ITC: ITC share price currently trading at ₹453, has experienced a breakout at ₹450 following a brief consolidation phase. Technical indicators suggest a bullish outlook, with the stock finding support at the mean of the Bollinger band and the band expanding, indicating increased volatility and potential upward movement. The positive crossover in the DMI at 30 signifies strength, while the RSI reading of 67 with a positive crossover indicates growing momentum.
A buy position is recommended at the current level with a target of ₹479, while a drop below ₹439 would invalidate the bullish view. Investors should exercise caution and conduct thorough analysis.
3] Cipla: Cipla share price has strong support zone around the ₹970 zone after rising from lower levels. Additionally, the stock has surpassed resilient levels of ₹1000. On weekly charts, the stock displayed a bullish candle, indicating strength. The RSI indicator is also maintaining above 65 levels, showing that there is much room available for the stock to inch higher. The stock is maintaining the 20 EMA on the daily chart, indicating further solid traction.
Therefore, one can start a long position at CMP ₹1006 based on the technical framework. However it would be better to enter within the ₹990 to ₹995 level range. Closing and sustaining above ₹1018 will move prices in the following days towards ₹1040 to ₹1045 levels. SL may remain at ₹975.
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: 17 Jun 2023, 08:31 AM IST
