Buy or sell stocks: On account of strong global market cues, Indian stock market advanced for second straight session on Friday last week. Nifty 50 index gained 107 points and closed at 19,653 levels, BSE Sensex shot up 364 points and ended at 65,995 mark whereas Bank Nifty index finished 147 points higher at 44,360 levels. Broad market indices rose in line with the Nifty even as the advance decline ratio advanced further to 1.88:1.
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Stock market strategy for next week
Sumeet Bagadia, Executive Director at Choice Broking believes that Indian stock market sentiments have improved after the participation by broad market indices in Friday’s rally. Choice Broking expert maintained that for fresh bull trend on Dalal Street Nifty 50 index needs to breach 19,850 hurdle on closing basis.
Stocks to buy on Monday
As mentioned above, Sumeet Bagadia has recommended three stocks to buy on Monday, here we list out full details in regard to Sumeet Bagadia’s stock recommendations:
1] Titan Company: Buy at ₹3310, target ₹3500, stop loss ₹3140.
Titan share price is currently trading at ₹3309.75 levels, and over the past five days, it has been in a consolidation phase, primarily ranging between ₹3140 and ₹3210. This consolidation suggests that the stock has been trading within a relatively tight price range, which could be indicative of a potential breakout.
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A crucial observation is the strong support level at ₹3140, which aligns closely with the 50-day Exponential Moving Average (EMA). This confluence of support suggests that there is significant buying interest around this level, potentially acting as a strong foundation for the stock’s price.
On the upside, resistance is anticipated near the ₹3350 level. A breach and maintenance of levels above ₹3350 could signify bullish momentum, potentially propelling the stock towards the target price of ₹3500, which would mark a new all-time high.
Furthermore, the formation of a strong bullish candle on the daily chart and the Relative Strength Index (RSI) comfortably trading at 62 levels both indicate positive momentum and potential upward movement in the stock. These factors collectively suggest that TITAN may be poised for a bullish trend if it can surpass the resistance levels and sustain its upward momentum.
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We recommend buying Titan shares at CMP of ₹3309.75 it can also be added up to ₹3200 for a medium term outlook with a stop loss of ₹3140 for targets of Rs3500.
2] DLF: Buy at ₹548, target ₹581, stop loss ₹530.
DLF share price exhibits compelling technical indicators, suggesting a potential bullish trajectory. The stock recently experienced a breakout on the daily time frame, coupled with robust support at a significant trendline. Notably, DLF has successfully surpassed critical short, mid, and long-term moving averages, including the 20, 50, 100, and 200-day exponential moving averages (EMA), signifying a strong upward momentum.
Furthermore, the Relative Strength Index (RSI) stands at a healthy 64, indicating favorable buying strength. Additionally, the Average Directional Index (ADX) is currently registering a robust reading of 21, affirming the strength of the prevailing trend.
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Considering these indicators, it is prudent to consider a long position in DLF Ltd. at ₹548, with a well-placed stop-loss at ₹530 to mitigate potential downside risk. The anticipated target is set at ₹581, aligning with the current bullish sentiment and technical analysis.
3] Aditya Birla Capital or AB Capital: Buy at ₹185.50, target ₹196, stop loss ₹173.
Aditya Birla Capital share is currently trading at ₹185.50. On the daily chart, the price is trading within the support of a daily channel and has shown promising price action for a potential reversal. Furthermore, Aditya Birla Capital is currently trading above critical Exponential Moving Averages (EMAs), including the 20 day, 50-day, 100-day, and 200-day EMAs, which reinforces its bullish momentum and suggests the potential for further upward price movement.
The Relative Strength Index (RSI) is currently at 51.1 and trending upwards, indicating growing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has recently experienced a positive crossover from the oversold region. This combination of technical indicators suggests that Aditya Birla Capital shares may have the potential to reach a target price of ₹196 in the near term.
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To effectively manage risk, it is advisable to implement a stop-loss (SL) at ₹173 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, Aditya Birla Capital appears to present an attractive buying opportunity for those aiming for a ₹196 price target, provided that prudent risk management measures are in place.
