Buy or sell shares for the next week: Indian stock market closed on a flat note on Friday, following weak global cues on concerns of economic slowdown. The Nifty 50 index recovered morning losses and closed 0.40 points lower at 17,624, while the BSE Sensex gained 22 points to close at 59,655. However, Bank Nifty failed to regain its lost ground and closed at 42,118, down 151 points.
Sumeet Bagadia, Executive Director, Choice Broking believes smelly There is a strong support near 17,500 to 17,550 levels while the 50-stock index is facing strong resistance near 17,800 levels. The technical analyst further added that a bullish or bearish trend can be predicted if the Nifty index breaks on either side. Suggesting stock specific strategies to stay safe in this sideways markets, Sumeet Bagadia recommends three stocks to buy on Monday and they are trading stocks ITC, Asian Paints and Bata India.
Here we give complete details regarding to buy or sell stocks for Monday:
1]ITC: The share price of this leading Indian conglomerate has been in an uptrend for the past one month and successfully broke through an important resistance level 392. This breakout is a positive sign for the stock, indicating the potential for further gains. Additionally, the application of Fibonacci Extension from swing low to high shows that the stock has the potential to reach levels of approx. from 425 430, which is a 78.6 percent expansion.
The Relative Strength Index (RSI) is currently at 73, which is considered in the overbought zone. However, it has remained at this level for the past few weeks, which suggests that the stock has strong momentum and could potentially continue to rise in the near term.
Furthermore, after a period of contraction, the Bollinger Bands are expanding, indicating an increase in volatility and the potential for further price action. Overall, investors can consider buying ITC at current prices 408, with a stop loss at 394 to manage the potential downside risk.
2]Asian Paints: After a good consolidation, Asian Paints share price has formed a strong base near 2800 zone in the daily chart, indicating strength in the price action. Asian Paints stock is trading above 20 and 50 day moving averages. The price has rebounded from the lower Bollinger band, the RSI is also indicating a positive crossover and the MACD suggests buying interest in the near term.
as soon as the price crosses the top 2900 which is 0.23 percent Fibonacci retracement, it could move higher. Hence, based on the above technical structure one can initiate a long position on CMP 2885. However, 2870-2865 levels would be a better range to enter on the safe side. close up and maintain will head towards 2905 3060-3100 levels in coming days. can be kept as SL 2800.
3]Bata India: Bata India The stock is currently quoting Have seen a consolidation breakout on the weekly chart from the area of 1481 and since 1380 1400.
The stock has finally managed to move above the 20 and 50 short term moving averages, suggesting a change in momentum.
The RSI is currently residing in the 35-40 range which is in the highly oversold zone on the weekly time frame and we expect the price to witness a gradual rise from the current levels.
On the daily chart, Bata has managed to break out of the downward sloping channel which was acting as an important resistance since December last year.
We can initiate a buy target in BATA at this level with a stop loss of 1550 1440.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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