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 stock market sentiments have turned more cautious. However, Choice Broking expert maintained that Nifty 50 index has managed to maintain its crucial support placed at 19,500 levels. He advised stock market investors to maintain stock specific approach as Q2 results 2023 season is underway.

On stocks to buy on Monday, Sumeet Bagadia recommended three stocks to buy next week — NTPC, Kotak Mahindra Bank and Tata Consumer Products.

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

1] NTPC: Buy at ₹241, target ₹250, stop loss ₹230.

NTPC share price is presently trading at ₹241. On the daily chart, the price exhibits a pattern of trading within a rising channel, consistently finding support along the lower boundary of this channel. Moreover, a bullish engulfing candlestick pattern has recently emerged, signifying the potential for upward momentum. In the event that the price surpasses the ₹242.5 level, it could suggest a target aligned with the upper boundary of the channel, currently situated at ₹250.5. Additionally, it’s worth noting that the price has been engaged in a sideways price action, confined within the range of ₹230 to ₹247.

Furthermore, NTPC is currently trading above significant Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This positioning underscores its bullish momentum and implies the potential for further upward price movement. The Relative Strength Index (RSI) currently stands at 55 and is trending upward, indicating growing buying momentum. This convergence of technical indicators suggests that NTPC may hold the potential to reach a target price of ₹250 in the near term.

2] Kotak Mahindra Bank: Buy at ₹1770, target ₹1900, stop loss ₹1700.

Kotak Mahindra Bank share is currently trading at ₹1770. On the daily chart, the price has shown a strong reversal from the bottom with significant volume. Additionally, the price is consolidating at a resistance level, indicating a bullish reversal from the bottom. If the price breaks the ₹1780 level, it may encounter resistance at ₹1845 and ₹1900 in the short run, while 1700 is an important support level for the stock.

Furthermore, Kotak Mahindra Bank share is currently trading above key Exponential Moving Averages (EMAs), including the 20-day EMA. This reinforces its bullish momentum and suggests the potential for further upward price movement. The Relative Strength Index (RSI) is currently at 52 and trending upwards, indicating increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has recently shown a positive crossover from the oversold region. This combination of technical indicators suggests that Kotak Mahindra Bank shares may have the potential to reach a target price of ₹1880 and ₹1900 in the near term.

To prudently manage risk, it is advisable to implement a stop-loss (SL) at ₹1700 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, Kotak Mahindra Bank share appears to present an attractive buying opportunity for those aiming for a ₹1900 price target, provided that sound risk management strategies are in place.

3] Tata Consumer Products: Buy at ₹899, target ₹960, stop loss ₹865.

Tata Consumer share price is is currently trading at 898.95 and its daily price chart showcases a consistent pattern of forming higher highs and higher lows, a strong indicator of an ongoing uptrend. Maintaining a price level above 920 could pave the way for a short-term target of 960, underscoring the potential for further upward movement.

Furthermore, Tata Consumer share has been consolidating within a range of ₹880 to ₹920, indicating a period of sideways trading. Any breakout beyond the ₹920 mark is likely to face initial resistance at ₹960. Conversely, substantial support is observable around the ₹880 level, serving as a crucial reference point for potential price reversals or developments.

In addition to its impressive price action, Tata Consumer share is currently trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This alignment further strengthens the bullish momentum and suggests the potential for continued upward price movement. The Relative Strength Index (RSI) is currently at 58 and is showing an upward trend, indicating a growing momentum in buying. Moreover, the Stochastic Relative Strength Index (Stoch RSI) has recently displayed a positive crossover after being in the oversold region. These combined technical indicators reinforce the notion that Tata Consumer shares may have the potential to reach a target price of ₹960 in the near term.

To prudently manage risk, it is advisable to set a stop-loss (SL) at ₹865 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, Tata Consumer share appears to offer an appealing buying opportunity for those aiming for a ₹960 price target, provided that sound risk management strategies are in place.

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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Updated: 21 Oct 2023, 11:23 AM IST