Buy or sell stocks: Indian stock markets saw some buying momentum in Friday trading after three consecutive losing sessions. The Nifty 50 index ended 104 points higher at 24,854. The BSE Sensex rose 218 points to end at 81,224, while the Bank Nifty index rose 805 points to end at 52,094. The NSE spot market volume increased by 4.2% compared to the previous session. The broad market index underperformed compared to the Nifty 50 index even as the advance/decrease ratio fell to 0.90:1.
Sumeet Bagadia Stocks to Buy Today
Sumeet Bagadia, executive director, Choice Broking, believes Friday’s rally could bring some relief until the Nifty 50 index decisively breaches the psychological level of 25,000. Choice Broking experts said the Indian stock market trend remains negative and could retest recent lows. Therefore, it is wise to take a stock-specific approach during Q2 2024 earnings. He suggested focusing on stocks that look strong on technical charts.
When asked about stocks to buy or sell on Monday, Sumeet Bagadia recommended buying ICICI Bank, JSW Steel and HDFC Life.
Sumeet Bagadia’s Stock Recommendations of the Day
1) ICICI Bank: Buy at ₹1264.50, target ₹1333, stop loss ₹1212.
ICICI Bank stock is currently trading around ₹1264.50, indicating some consolidation after the recent decline. The stock is trading in a range, looking for stability before making the next move.
The stock has strong support at ₹1212 (near the 100-day exponential moving average or EMA) and resistance near ₹1280. If the price crosses ₹1280, it could lead to a new uptrend and push the stock price towards ₹1333.
The stock’s volume has been steady, but it will need to break through resistance on more solid volume to confirm a sustained uptrend. If the price remains above the Volume Weighted Average Price (VWAP) of around ₹1250, we can expect a recovery in the coming sessions. ICICI Bank is showing signs of recovery in the short term, especially if it can cross the ₹1280 level. Investors can look for buying opportunities on the push, keeping an eye on the stop loss at ₹1212 and further move target at ₹1333.
2) JSW Steel: Buy at ₹992.60, target ₹1050, stop loss ₹960.
JSW Steel stock price is currently trading around ₹992.60, showing a gradual recovery after hitting a low of ₹969.75. The stock price has shown some level of consolidation and is trying to stabilize itself for the next move. The stock is facing immediate resistance at ₹995 (near the 20-day exponential moving average (EMA)). A break above this level could push the stock towards the next key resistance level at ₹1050. On the downside, the stock has strong support around ₹960, which coincides with the 50-day EMA. If it breaks below this, we may see further correction towards ₹940.
The stock price is currently between the 20-day EMA and 50-day EMA (₹995 and ₹960 respectively), indicating an undecided or consolidation stage. For current investors, it is advisable to hold stocks above ₹990. To protect against downside risk, you can place a stop-loss order around ₹960. If the stock price closes above ₹1000, it could be a sign of further uptrend.
New investors may set a stop loss at ₹960 and look for buying opportunities around ₹990. A break above ₹1000 would strengthen the case for short-term profits and ₹1050 could be the target for future trading.
3) HDFC Life: Buy at ₹742.45, Target ₹790, Stop Loss ₹715.
HDFC Life stock price is currently trading at ₹742.45, showing a notable uptrend from the support level near ₹715, which is close to the 20-day Exponential Moving Average (EMA). The stock’s positive momentum is further supported by its above short-term (20 days), medium-term (50 days) and long-term (200 days) EMA levels, reinforcing its technical resilience.
Underscoring the stock’s strength was the strong break above the ₹760 resistance, supported by solid volume, which also marks a 52-week high. A break above this key resistance could set the stage for a rally towards the ₹790 target in the near term. Traders and investors who entered at lower levels are advised to protect their positions by pulling off the stop loss near ₹715 and aim for a target above ₹790.
The Relative Strength Index (RSI), a momentum indicator, is currently at the 60 level, indicating positive momentum in the stock price. For those considering new investments, the current market price (CMP) with a target of ₹790, with a tight stop loss set at ₹715 level to effectively manage risk. Purchasing becomes a viable option.
Disclaimer: The views and recommendations provided in this analysis are those of the individual analysts or brokerage firms and not of Mint. Because market conditions can change rapidly and individual circumstances may vary, investors are strongly encouraged to consult a certified professional before making any investment decisions.
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