Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday
Stock market strategy next week
Sumeet Bagadia, Executive Director at Choice Broking believes that the market is trading range-bound in the 21,100 to 21,500 range. Bullish or bearish trends can be assumed on the breakage of either side of this range.
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The Choice Broking expert went on to add that frontline banking stocks may see a fresh bull trend on breakage of the upper hurdle placed at the 46,300 zone by the Bank Nifty index.
Stocks to buy on Monday
On stocks to buy next week, Sumeet Bagadia recommended three shares to buy on Monday — Mahindra & Mahindra (M&M), Grasim Industries and Adani Ports.
1] M&M: Buy at ₹1635.50, target ₹1735, stop loss ₹1575.
M&M share price is currently trading at ₹1635.50 levels, exhibiting a robust support base around ₹1575 levels. The stock’s recent accomplishment in surpassing the initial resistance at ₹1633, aligned with its 20-day Exponential Moving Average (EMA), signifies underlying strength in its current trend. An additional minor resistance is anticipated near ₹1675 levels, and a successful breach beyond this point could propel the stock towards the target of ₹1735 levels.
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Furthermore, M&M share maintains a favorable position by trading above its short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMA levels, validating its sustained positive momentum. The momentum indicator, the Relative Strength Index (RSI), is also on an upward trajectory, presently trading at 50 levels, reinforcing the bullish sentiment.
Investors and traders alike may find this opportune moment to monitor M&M closely, considering its strong technical setup and potential for an upward trajectory. A break above the resistance at ₹1675 could trigger further buying interest, potentially realizing the target of ₹1735 levels. Based on the above analysis we recommend buying M&M shares at a CMP of ₹1635.50, It can also be added up to ₹1605 with a strict stop loss of ₹1575 for the target of ₹1735.
2] Grasim Industries: Buy at ₹2076, target ₹2250, stop loss ₹2016.
Grasim share price is presently trading at ₹2076, showcasing a sturdy demand zone within the range of ₹2025 to ₹2035, which serves as a critical support level. The formation of new higher highs and higher lows indicates a potential upward movement, with projected targets at ₹2200 and ₹2250. Importantly, significant support is discernible around ₹2016.
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Additionally, the Grasim share price is trading above key Exponential Moving Averages (EMAs), encompassing the 20-day, 50-day, 100-day, and 200-day EMAs, indicating a strong bullish momentum. The Relative Strength Index (RSI) stands at 51, affirming an upward trajectory and confirming increased buying momentum.
To effectively manage risk, it is advisable to set a stop-loss (SL) at ₹2016, safeguarding investments against unexpected market reversals. A prudent strategy involves considering buying opportunities during market dips at levels around ₹2040.
In summary, based on technical analysis and prevailing market conditions, Grasim share appears to offer a promising buying opportunity for those targeting price objectives of ₹2200 and ₹2250, contingent upon the implementation of prudent risk management measures.
3] Adani Ports: Buy at ₹1146.30, target ₹1210, stop loss ₹1110.
Adani Port share is currently trading at ₹1146.30, showcasing a robust performance by surpassing the critical 20 Day Exponential Moving Average (EMA) levels situated around ₹1135. The stock’s ability to trade comfortably above this level indicates inherent strength in its current trend. Moreover, Adani Port share is positioned favorably, trading above its short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMA levels, underscoring its sustained positive momentum.
Adani Port share maintains a solid support base at ₹1110 levels, offering a buffer against potential downturns. While a minor resistance is evident around the ₹1170 level, a successful breach beyond this point could propel the stock higher towards the ₹1210 level.
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The Relative Strength Index (RSI), a momentum indicator, is presently at a comfortable level of 55.96, reinforcing the stock’s strength. This suggests that Adani Port share is well-positioned for potential upward movements. Investors and traders may find this setup promising, with the stock showcasing technical strength and the potential for a positive trajectory, particularly if it overcomes the resistance at ₹1170 levels.
With a medium-term target price of 1210, we advise purchasing Adani Port at the CMP of ₹1146.30. It can also be accumulated close to ₹1135 levels. If the price closes below ₹1110, our analysis will be regarded as being invalid.
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 making any investment decisions.
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Published: 27 Jan 2024, 10:17 AM IST
