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

In the broad market, both small-cap and mid-cap indices outperformed the key benchmark indices even as the advance-decline ratio remained firm at 1.56:1. Large activity was seen in bank, auto, pharma, PSU, and FMCG stocks.

Stock market strategy for next week

Sumeet Bagadia, Executive Director at Choice Broking believes that overall Indian stock market managed to maintain its positive bias after sustaining above the 22,000 level. 

The Choice Broking expert said that Nifty today has crucial support placed at the 21,800 mark and the 50-stock index is now looking ahead to touch 22,400 and 22,800 levels in the short-term time horizon.

Also Read: Gold price dips for second straight week on higher US Fed rate buzz

Stocks to buy: Sumeet Bagadia’s stock recommendations

On stocks to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday — Dr. Reddy’s Laboratories, LT, and Adani Ports. Here we list out full details regarding Sumeet Bagadia’s stock picks:

1] Dr. Reddy’s Laboratories: Buy at ₹6317.15, target ₹6780, stop loss ₹6145.

Dr Reddy’s share is currently trading near its all-time high at ₹6317.15, exhibiting a pattern of making fresh higher highs and higher lows on weekly charts, accompanied by substantial trading activity. This pattern indicates that the stock has tremendous momentum. DRREDDY could reach a target price of ₹6780 soon, making it a good time to buy on dips, especially around ₹6145.

Furthermore, DRREDDY is trading above major exponential moving averages (EMAs), such as the 20-day, 50-day, and 200-day EMAs. This alignment above these key EMAs strengthens the bullish picture, implying the probability of a protracted upward price rise. To efficiently control risk, set a stop-loss (SL) at ₹5950. This preventive strategy is critical for protecting your money in the case of an unforeseen market downturn.

In summary, considering the technical analysis and current market conditions, Dr Reddy share price appears to present an appealing purchasing opportunity for investors looking for a price goal of ₹6780, providing reasonable risk management measures are in place.

2] LT: Buy at ₹3384, target ₹3800, stop loss ₹3240.

LT share price is currently trading at ₹3384, exhibiting a strong reversal from the bottom level. The price action has formed a bullish engulfing pattern with substantial volume, signaling a bullish reversal following a correction from the top. There is potential for LT to achieve a target price of ₹3800 in the near term, making it advisable to consider purchasing on dips, particularly around ₹3300.

Additionally, LT is positioned above key Exponential Moving Averages (EMAs), including the 100-day, and 200-day EMAs. This alignment above these crucial EMAs enhances the bullish outlook, suggesting the possibility of a sustained upward price movement. To effectively manage risk, it is recommended to implement a stop-loss (SL) at ₹3240. This precautionary measure is crucial to safeguard your investment in the event of an unexpected market reversal.

In summary, considering the technical analysis and current market conditions, LT appears to present an attractive buying opportunity for those aiming for a ₹3800 price target, provided that prudent risk management measures are in place.

3] Adani Ports: Buy at ₹1310, target ₹1520, stop loss ₹1260.

Adani Ports share is currently trading near its all-time high at ₹1309.85, showcasing a pattern of establishing new higher highs and higher lows, accompanied by robust trading volume. This trend signals strong momentum in the stock. There is potential for Adani Ports share to attain a target price of ₹1520 in the near term, making it advisable to consider purchasing on dips, particularly around ₹1280.

Furthermore, Adani Ports share is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This alignment above these crucial EMAs enhances the bullish outlook, suggesting the possibility of a sustained upward price movement.

To effectively manage risk, it is recommended to implement a stop-loss (SL) at ₹1260. This precautionary measure is crucial to safeguard your investment in the event of an unexpected market reversal. In summary, considering the technical analysis and current market conditions, Adani Ports share appears to present an attractive buying opportunity for those aiming for a ₹1520 price target, provided that prudent risk management measures are in place.

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.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!

Published: 17 Feb 2024, 10:37 AM IST