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 outlook for Indian stock market has further improved as mid-cap and small-cap indices stocks have once again started to participate in current rally. Choice Broking expert said that Nifty today looks poised for near term target of 20,350. On stocks to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday — Bharti Airtel, Mahindra & Mahindra (M&M) and Rainbow.

Here we list out full details in regard to Sumeet Bagadia’s stock recommendations for next week:

1] Bharti Airtel: Buy at ₹936, target ₹980, stop loss ₹900.

Bharti Airtel share is currently trading at ₹936.15 levels suggests a healthy upward momentum. A notable aspect is the consistent formation of higher highs and higher lows on the daily charts, a classical indication of an uptrend. This pattern suggests that buyers are progressively willing to pay more for the stock, reflecting growing confidence in its potential.

Furthermore, the fact that a previous resistance level near ₹900 has now transformed into a strong support level is a positive development. This breakout indicates that the stock has overcome a significant hurdle, potentially opening the door for further price appreciation.

The stock’s positioning above the 20, 50, and 200-day Exponential Moving Averages (EMA) underscores its bullish momentum. The successful closing above these EMA levels strengthens the case for a continued upward movement. Additionally, the volume analysis reveals that the stock has been advancing with strong trading volumes, implying substantial investor interest and confidence.

The stock’s overall technical picture, including the uptrend, support-turned-resistance levels, and strong volume, suggests that any dips in the stock’s price could represent buying opportunities for investors looking to participate in the ongoing bullish trend.

With a Medium term outlook one can buy Bharti Airtel shares at CMP of ₹936.15, it can be also added on dips near ₹920 levels with an SL of ₹900 for a target price of ₹980.

2] Mahindra & Mahindra (M&M): Buy at ₹1600, target ₹1780, stop loss ₹1535.

M&M share price presently trading at ₹1601.10, has formed a rounding bottom pattern, accompanied by robust technical indicators that enhance its appeal to investors. During the past week, the stock has demonstrated strong support at the ₹1535 level, signaling price stability. Additionally, M&M share is currently trading above critical Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, underlining its bullish momentum and the possibility of further upward price movement.

The Relative Strength Index (RSI) is currently at 60 and exhibits an upward trajectory, indicating an increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) is displaying a positive crossover. This combination of technical factors suggests that M&M may have the potential to achieve a target price of ₹1780 in the near term.

To manage risk, it is advisable to set a stop-loss (SL) at ₹1535 to protect your investment in case the market takes an unexpected turn. Overall, given the technical analysis and current market conditions, M&M appears to be a promising buy opportunity for those targeting a ₹1780 price level, with prudent risk management measures in place.

3] Rainbow: Buy at ₹1025, target ₹1075, stop loss ₹985.

Rainbow share price is currently trading at ₹1025, exhibits promising indicators on the charts. The stock has established a robust support level between ₹1000 to ₹1016, from which it has recently demonstrated a substantial rebound. Furthermore, the Relative Strength Index (RSI) stands at 48, indicating positive momentum with a recent crossover.

Additionally, Rainbow is trading above its pivotal moving averages, including the 100, and 200 Exponential Moving Averages (EMAs), underscoring its bullish sentiment.

Given these encouraging signals, it is recommended to initiate a position in Rainbow at the current price of ₹1025. Investors may consider adding to their position on any pullbacks, particularly down to ₹1000, to enhance the potential return. The anticipated target for this trade is set at ₹1075, based on the current technical analysis, keep SL at ₹985.

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: 16 Sep 2023, 12:38 PM IST