Buy or sell stocks: Indian stock market finishes lower for second day in a row following weak global market sentiments on hawkish US Fed. BSe Sensex climbed to record high on two successive sessions on Wednesday and Thursday sessions whereas NSE Nifty missed to scale new peak by just one point on three out of five sessions. Bank Nifty ended below 44,000 levels.
Stock market strategy for next week:
– Sumeet Bagadia, executive Director at Choice Broking, believes that NSE Nifty may scale to a new peak till it is trading above 18,650 levels. However, he maintained that Bank Nifty is facing hurdle at 44,000 levels and fresh momentum in the banking index can be expected only when the index breaches this hurdle on a closing basis.
– Sumeet Bagadia recommended three stocks to buy next week: Bharti Airtel, Asian Paints, and Sun Pharma.
Stock recommendations:
1. Bharti Airtel: Buy at ₹854.80, target ₹882, stop loss ₹832.
– Strong bullish signals based on its price action.
– Stock is trading above 20 Simple DMA, ratifying the current support.
– The price has traded above Ichimoku Cloud & positive crossover is indicated in RSI and MACD in momentum indicator as well that suggests continuity in the bullish trend in the near term.
– Breadth indicator suggests rise in On Balance volume, confirms positive volume flow in scrip.
– Long position can be initiated at CMP ₹854.80. Nearby ₹847 to ₹850 levels would be a better range to enter.
– Closing and sustaining above ₹860 will lead towards ₹878 to ₹882 levels in coming days. SL can be kept as ₹832.
2. Asian Paints: Buy at ₹3297.70, target ₹3460, stop loss ₹3200.
– Currently trading at ₹3297.7 levels.
– The stock has corrected from the resistance of ₹3345 levels but has shown a sharp bounce from the initial support of ₹3240 which is also 20 day EMA levels.
– The stock has also formed a bullish candle on daily charts.
– Once stock crosses its resistance of ₹3345 which is also the above mentioned resistance, the stock shall move towards the further resistance of ₹3460 levels.
– The RSI indicator is also comfortably trading at 64 levels, which show the strength for the stock to move upwards.
– Buying at CMP of ₹3297.70 and it can be also added up to ₹3230 with a medium-term target price of ₹3460.
– Analysis will be deemed invalid if the price closes below ₹3200 levels.
3. Sun Pharma: Buy at ₹991, target ₹1023, stop loss ₹975.
– Presently trading at ₹991, having recently broken out from its previous range of ₹981 to ₹995 that persisted for a week and again consolidated above ₹980 levels.
– This breakout and retest signifies a good buying opportunity.
– The Relative Strength Index (RSI) is trending upward and appears to be on the verge of a positive crossover, indicating a potential increase in buying pressure.
– Sun Pharma’s price is currently positioned above its 20-50-100-200 Exponential Moving Averages (EMA), suggesting underlying strength in the stock.
– The Bollinger Band is also displaying expansion, indicating an increase in volatility and potential upward momentum.
– Favourable buying opportunity at the current price of ₹991, with a target price of ₹1023.
– Views would be invalidated if the stock were to fall below the ₹975 level.
Disclaimer: The views and recommendations given in this article are those of individual analysts and do not represent the views of Mint. Investors are advised to check with certified experts before taking any investment decisions.
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