Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday

In the broad market, both small-cap and mid-cap indices touched a new high on Friday. the small-cap index ended 0.49 percent higher after touching a new lifetime high of 46,469 while the mid-cap index finished 0.80 percent northward after touching a new peak of 39,140.

Stock market strategy for next week

Sumeet Bagadia, Executive director at Choice Broking believes that the important support zone for the Nifty 50 index has remained sacrosanct. However, the Choice Broking expert maintained that further rally on Dalal Street can be expected only when the 50-stock index closed above the 22,000 level. Sumeet Bagadia said that Nifty today can be assumed in the 21,700 to 22,000 zone.

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Stocks to buy next week

On stocks to buy today, Sumeet Bagadia recommended three intraday stocks for Monda — Tata Steel, Tech Mahindra, and NTPC.

Here we list out full details regarding Sumeet Bagadia’s stock recommendations:

1] Tata Steel: Buy at ₹138.70, target ₹147, stop loss ₹134.50/

Tata Steel share, presently trading at ₹138.70 levels, exhibits compelling technical dynamics that warrant a closer examination for investors. The stock has successfully established a robust support level at ₹134.5, closely aligned with its 20 Day Exponential Moving Average (EMA). This convergence reinforces the significance of the support zone, indicating a strong foundation for the stock.

Furthermore, Tata Steel share’s position above essential moving averages emphasizes its bullish sentiment, reflecting positive investor confidence in the stock’s potential. The alignment with the 20-day EMA adds a layer of technical support, affirming the stock’s upward trajectory.

The Relative Strength Index (RSI) is a key indicator, currently standing at a comfortable 59.31 level. This implies the stock’s underlying strength and its ability to sustain its present course. The RSI reading reinforces the positive sentiment and suggests that TATASTEEL may have the momentum to continue its upward movement.

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Based on the aforementioned technical analysis, investors holding Tata Steel shares may consider implementing trailing stop losses to protect gains, as the stock has the potential to move toward the ₹147 level. This proactive risk management approach allows investors to secure profits while remaining positioned to capitalize on potential further gains.

Based on the above analysis we recommend buying Tata Steel shares at CMP of ₹138.70, It can also be added on dips up to 136 with a stop loss of ₹134.5 for the target of ₹147.

2] Tech Mahindra: Buy at ₹1338.10, target ₹1400, stop loss ₹1280.

Tech Mahindra share is currently trading at ₹1338.10 levels and appears to be in a consolidation phase within the range of ₹1300 to ₹1350. This range aligns with a robust support zone at ₹1280, encompassing the 50-day Exponential Moving Averages (EMA). The convergence of these factors suggests a significant level of stability and a potential opportunity for traders and investors.

The consolidation within this range reflects a delicate equilibrium between buying and selling pressures, indicating a period of price discovery and market participants reassessing their positions. It is noteworthy that the support zone includes the 50-day EMA, further reinforcing its significance.

A potential breakout above the upper boundary of this consolidation range, specifically above ₹1355 levels, could act as a catalyst for a bullish move. In such a scenario, traders might look to capitalize on the upward momentum, with a target set at ₹1400 and possibly beyond.

The Momentum indicator, Relative Strength Index (RSI), currently stands at 60.76 levels, signaling a neutral stance.

Traders and investors are advised to closely monitor the price action and be vigilant for a potential breakout. The support range, particularly around ₹1280 levels, could serve as a strategic entry or exit point. Overall, the analysis points towards a cautiously optimistic outlook for TECHM, contingent on a decisive breakout above the upper boundary of the consolidation range.

3] NTPC: Buy at ₹332.50, target ₹347, stop loss ₹325.50.

NTPC share price is trading at ₹332.5 levels and has recently exhibited a robust breakout above the key resistance level of ₹325.50. This breakout is supported by strong trading volumes, suggesting a substantial influx of market participants and indicating underlying strength in the stock’s movement. One notable aspect is that NTPC is trading above all significant moving averages, emphasizing the overall positive trend in the stock. This alignment reinforces the bullish sentiment and provides additional confirmation of the stock’s upward trajectory.

The breakout level at ₹325.5, having been surpassed, is now expected to serve as a formidable support level. This adds a layer of resilience to the stock, as it suggests that the previous resistance has now transformed into a strong support zone.

The momentum indicator, Relative Strength Index (RSI), is currently at 65.76 levels, indicating an upward movement in momentum. This further supports the bullish outlook, suggesting that there might be more room for the stock to climb before potentially reaching overbought conditions.

Based on the above analysis we recommend buying NTPC at CMP ₹332.5 it can also be added on dips near ₹330 for the target of ₹347 with a stop loss of ₹325.5.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 03 Feb 2024, 09:51 AM IST