Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday
Buy or sell stocks for next week: Following weak global cues on economic slowdown concerns, Indian stock market ended on a flat note on Friday. Nifty 50 index regained early morning losses and ended 0.40 points lower at 17,624 whereas BSE Sensex added 22 points and closed at 59,655 levels. However, Bank Nifty failed to regain its lost ground and finished 151 points lower at 42,118 levels.
Sumeet Bagadia, Executive Director at Choice Broking believes that Nifty has strong support placed at 17,500 to 17,550 levels whereas the 50-stock index is facing strong resistance at 17,800 levels. The technical analyst went on to add that bullish or bearish trend can be assumed on breakage of either side of Nifty index. Suggesting stock specific strategy to remain safe in this sideways markets, Sumeet Bagadia recommended three stocks to buy on Monday and those trading stocks are ITC, Asian Paints and Bata India.
Here we list out full details in regard to buy or sell stocks for Monday:
1] ITC: Share price of this leading Indian conglomerate, has been on an upward trajectory for the past month and has successfully broken through a crucial resistance level at ₹392. This breakout is a positive sign for the stock, indicating a potential for further gains. Additionally, the application of Fibonacci extensions from the swing low to high suggests that the stock has the potential to reach levels around ₹425 to ₹430, which is a 78.6 per cent extension.
The Relative Strength Index (RSI) is currently at 73, which is considered overbought territory. However, it has been sustaining at this level for the past couple of weeks, which suggests that the stock has strong momentum and could potentially continue to rise in the short term.
Furthermore, after a period of contraction, the Bollinger Bands are expanding, indicating an increase in volatility and potential for further price movements. Overall, investors could consider buying ITC at the current price of ₹408, with a stop loss at 394 to manage potential downside risk.
2] Asian Paints: After decent consolidation Asian Paints share price has formed a strong base around 2800 zone in the daily chart, indicating strength in price action. Asian Paints share is trading higher than 20 and 50 day moving averages. The price has rebounded from lower Bollinger band, also positive crossover is indicated in RSI and MACD suggests buying interest in the near term.
As the price crosses above ₹2900 which is 0.23 percent of Fibonacci retrenchment it may move higher further. Hence, based on the above technical structure one can initiate a long position at CMP 2885. However, on the safer side nearby 2870-2865 levels would be a better range to enter. Closing and sustaining above ₹2905 will lead towards ₹3060-3100 levels in coming days. SL can be kept as ₹2800.
3] Bata India: Bata India share is currently Quoting at ₹1481 and has seen a consolidation breakout on weekly charts, from zone of ₹1380 to ₹1400.
The stock has finally managed to break above its short term moving averages of 20 and 50, suggesting a change in momentum.
RSI currently remains at 35-40 range which is in highly oversold zone in weekly time frame and we expect that price would rise gradually from current levels.
On Daily Chart, BATA has managed to break out of downward sloping channel which was acting as crucial resistance since Dec last year.
We can initiate a buy in BATA at this level for a target of ₹1550 with a Stop loss of ₹1440.
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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