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

Stock market strategy for short-term

Sumeet Bagadia, Executive Director at Choice Broking believes that the stock market sentiment has improved after bouncing back on Friday. The Choice Broking expert went on to add that the Nifty 50 is now facing a hurdle at the 21,800 level after making an immediate base at 21,650 zones. Bagadia said that Dalal Street trends may further improve once the 50-stock index gives a decisive breach above the 21,800 mark on a closing basis.

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On stocks to buy on Monday, Sumeet Bagadia of Choice Broking recommended three stocks to buy on Monday — Sun Pharma, ICICI Bank, and Ambuja Cements.

Stocks to buy on Monday`

1] Sun Pharma: Buy at ₹1534, target ₹1575, stop loss ₹1499.

Sun Pharma share price is trading at ₹1534 levels and has recently exhibited a robust breakout above the key resistance level of ₹1500. 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 Sun Pharma share price 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.

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The breakout level at 1500, 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 79.76 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 Sun Pharma share price at CMP ₹1534 it can also be added on dips near ₹1515 for the target of ₹1575 with a stop loss of ₹1499.

2] ICICI Bank: Buy at ₹1010.70, target ₹1111, stop loss ₹960.

ICICI Bank share price is currently trading at ₹1010.7 levels and appears to be in a consolidation phase within the range of ₹960 to ₹1050. This range aligns with a robust support zone at 980, encompassing the 100-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 100-day EMA, further reinforcing its significance.

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A potential breakout above the upper boundary of this consolidation range, specifically above ₹1050 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 ₹1111 and possibly beyond. The Momentum indicator, Relative Strength Index (RSI), currently stands at 51.5 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 ₹960 levels, could serve as a strategic entry or exit point. Overall, the analysis points towards a cautiously optimistic outlook for ICICI Bank shares, contingent on a decisive breakout above the upper boundary of the consolidation range.

3] Ambuja Cements: Buy at ₹576.20, target ₹600, stop loss ₹550.

Ambuja Cement shares, presently trading at ₹576.2 levels, the stock has successfully established a robust support level at ₹552.5, 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, Ambuja Cements share price 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 65 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 AMBUJACEM may have the momentum to continue its upward movement.

Based on the aforementioned technical analysis, investors holding Ambuja Cements share price may consider implementing trailing stop losses to protect gains, as the stock has the potential to move toward the ₹600 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 Ambuja Cement shares at a CMP of ₹576.2, it can also be added on dips up to ₹565 with a stop loss of ₹550 for the target of ₹600.

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: 10 Feb 2024, 10:21 AM IST