Stock market strategy for the coming week
In a truncated week in which, stock market holidays fall on Monday and Friday for Holi 2024 and Good Friday 2024 respectively, Sumeet Bagadia, Executive Director at Choice Broking believes that the Nifty 50 index maintaining above the psychological 22,000 is crucial. The Choice Broking expert said the 50-share index has support placed at the 21,850 mark while it faces a barrier at the 22,200 level. On stocks to buy next week, Sumeet Bagadia recommended three buy or sell stocks – ITC, IndusInd Bank and Mahindra & Mahindra (M&M).
Stocks to buy next week
Here we list full details of Sumeet Bagadia’s stock recommendations for the coming week:
1) ITC: Buy at ₹428.60, purpose ₹455, stop loss ₹415.
Share price of ITC, currently trading at ₹428.60 levels, exhibits robust support at ₹415 levels, strengthened by its proximity to the 20-day EMA. A small resistance is noted nearby ₹438 levels, coinciding with recent highs. After breaching this resistance, the stock may rise to the target price of ₹455 and beyond.
Daily chart patterns reveal a consistent formation of higher highs and higher lows over the past three days with increasing volumes, signaling underlying strength. The momentum indicator RSI is helping this bullish sentiment, currently at 58.68 and rising. Furthermore, ITC maintains positions above its short-term (20 Days) and medium-term (50 Days) EMAs, underscoring its positive bias.
Considering these technical indicators, we recommend buying ITC shares at the current market price of ₹428.60, with additional purchase options available at dips nearby ₹422 levels. A decisive close below ₹415 would invalidate our analysis, warranting a reassessment of the stock’s outlook.
2) IndusInd Bank: Buy at ₹1512, purpose ₹1610, stop loss ₹1440
The IndusInd Bank stock has shown remarkable resilience, decisively rebounding from the large support level of ₹1440, getting close with its 200-day EMA. Currently trading at ₹1512.10, the stock’s position above key short-term, medium-term and long-term EMAs underlines its positive momentum, indicating a bullish bias in the market sentiment.
The continued buying interest, evident through consistent volumes and upward price movement, adds to the strength of IndusInd Bank stock. Furthermore, the RSI indicator, currently at 52.13, lends further support to the bullish sentiment, suggesting favorable conditions for further upward movement.
Modest resistance from around ₹1565, reflecting recent highs, presents a minor hurdle for the stock. On the breach of this level, IndusInd Bank stock may target higher levels, with a possible further target of ₹1610.
In light of these technical factors, we recommend initiating a long position on shares of IndusInd Bank at the current market price of ₹1512.10. Additionally, investors may consider accumulating the stock on dips nearby ₹1470 levels. Our medium-term target price stands at ₹1610. However, it should be noted that closing below the critical support level of ₹1440 would invalidate our analysis, necessitating a revaluation of the stock’s trajectory.
3) Mahindra & Mahindra (M&M): Buy at ₹1879, purpose ₹2020, stop loss ₹1800
M&M’s share price has shown remarkable resilience, making a robust recovery from the critical support level at ₹1800, coinciding with its crucial 50-day EMA. Currently priced at ₹1878.80, M&M share price convincingly broke the resistance at ₹1860, also its 20-day EMA, establishing a bullish trajectory above key moving averages.
M&M share price continued uptrend is further validated by the rebound in the momentum indicator RSI, currently positioned at 53.54 after rebounding from lower levels. This bullish momentum suggests favorable conditions for further upside potential.
Opportunities for entry present themselves on possible retreats near the ₹1860 level, providing position traders with a strategic buying opportunity. The target price of ₹2020, representing a recent all-time high in terms of Fib extensions, underlines the stock’s potential for significant upward movement.
Given the bullish outlook, we recommend buying M&M shares at the current market price of ₹1878.80. Additionally, investors may consider accumulating the stock on dips nearby ₹1860, with a stop loss placed at ₹1800 to mitigate downside risk and target potential upside ₹2020
Disclaimer: The views and recommendations above are those of individual analysts, experts and trading companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
Unlock a world of Perks! From insightful newsletters to real-time stock tracking, breaking news and a personalized news feed – it’s all here, just a click away! Login Now!
Catch all Business News, Market News, News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More or less
Published: 23 Mar 2024, 13:12 IST