Buy or sell: Sumeet Bagadia recommends three stocks to buy next week

Stock market strategy for next week

Sumeet Bagadia, Executive Director at Choice Broking believes that Indian stock market sentiment has tuned positive after the massive gain registered on Friday. The Choice Broking expert went on to add that Dalal Street trend may go further upside once the Nifty index breaches its immediate hurdle placed at 19,550 to 19,600 zone. On stocks to buy next week, Sumeet Bagadia recommended three stocks for next week and those shares are Persistent Systems, Bajaj Finance and NTPC.

Here we list out full details in regard to Sumeet Bagadia’s stock picks:

1] Bajaj Finance: Buy at ₹7320, target ₹7575, stop loss ₹7150.

Bajaj Finance share has a strong support range between ₹7170 and ₹7190 which is also close to 50 and 20 Day EMA levels. The stock has recovered from its support levels and is now trading near ₹7320.60. The RSI indicator is also comfortably trading near 57 levels, indicating strength. The stock has taken support from the middle band and is approaching the upper band, which could be a small resistance near 7360. Once the stock exceeds the previously mentioned levels, it may move towards the ₹7575 level and above. Currently stock is trading above all the important moving averages indicating strength.

Based on the above mentioned technical analysis, we recommend purchasing Bajaj Finance shares at the current market price of ₹7320.60; it can also be added close to ₹7240 with a medium-term target price of ₹7575. If the price falls below ₹7150, our analysis will be deemed invalid.

2] Persistent Systems: Buy at ₹5543, target ₹5900, stop loss ₹5275.

Persistent Systems share is currently trading around ₹5543.30 levels. The stock has surpassed the strong resistance of ₹5275 levels and is trading now at all-time high levels. This breakout is supported by strong volumes. Momentum indicator RSI is inching higher and currently trading at 75 levels indicating strength. The stock is trading above all the important moving averages. Any dip in the stock will be a buying opportunity.

Based on the above technical analysis we recommend buying Persistent Systems shares at CMP of ₹5543.30 levels. It can be also added on dips up to ₹5430 with a stop loss of ₹5275 for the target of ₹5900 levels.

3] NTPC: Buy at ₹230 to ₹220, target ₹245 to ₹255, stop loss ₹210.

NTPC share price is currently trading at ₹230, has exhibited promising technical indicators that suggest a favorable investment opportunity. After a month-long consolidation within the range of ₹224 to ₹212, the stock recently experienced a range breakout, indicating renewed momentum. The Relative Strength Index (RSI) stands at 73 and is trending upward, reflecting strong buying interest.

Furthermore, NTPC is trading above all of its key Exponential Moving Averages (EMAs) – the 20-day, 50-day, 100-day, and 200-day EMAs. This confluence of positive technical factors suggests a robust bullish sentiment surrounding the stock.

Considering the technical analysis and the breakout pattern, NTPC appears to be a compelling buy at its current price range of ₹230 to ₹220. In the mid-term, it has the potential to reach price targets of ₹245 to ₹255.

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.

Updated: 02 Sep 2023, 11:33 AM IST