Stock market strategy for next week
Sumeet Bagadia, Executive Director at Choice Broking believes that Nifty 50 index is facing resistance at 19,800 levels. Choice Broking expert went on to add that Nifty today has support placed at 19,600 levels and overall trend will remain cautions till Nifty breaks and sustains above 19,850 levels. On stocks to buy next week, Sumeet Bagadia recommended three shares to buy on Monday — Tata Consumer, Lupin and Nestle India.
Sumeet Bagadia’s stock recommendations
1] Tata Consumer: Buy at ₹913.35, target ₹975, stop loss ₹870.
Tata Consumer share price is currently trading at 913.35 levels. The stock is currently displaying several positive technical indicators in its trading pattern. The Relative Strength Index (RSI) at 66 suggests that the stock is in a balanced state, neither overbought nor oversold, indicating a stable trend.
Furthermore, the stock has crossed above its 20-day Exponential Moving Average (EMA) and closed above it, which is often considered a bullish sign. It’s also trading above other key moving averages, which further reinforces the bullish sentiment.
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The stock has crossed the all-time high levels and given a breakout with good volumes indicating strength. With a medium-term target price of ₹975, we advise purchasing TATACONSUM at the CMP of ₹913.35, it can also be added on dips near ₹885 If the price closes below ₹870, our analysis will be regarded as being invalid.
2] Lupin: Buy at ₹1188, target ₹1265, stop loss ₹1140.
Lupin share price is currently trading at ₹1187.90 levels. The technical analysis provided for LUPIN stock suggests a generally positive outlook. The stock has bounced from the support of 1140 which is also close to its 20 Day EMA levels.
Furthermore, the fact that the stock is trading above key moving averages, including the 20-day, 50-day, and 200-day EMAs, indicates that it has exhibited consistent upward momentum across various timeframes. This is often seen as a bullish sign.
The Relative Strength Index (RSI) at 67 suggests that there is strength in the stock. However, there is a smaller resistance level at ₹1220 that the stock needs to overcome. If it successfully surpasses this resistance, it could potentially target higher levels, specifically 1265 and beyond.
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According to the aforementioned technical analysis, we advise buying LUPIN at CMP of ₹1187.90, it can be also added near ₹1165 for the target of 1265 levels, if the stock closes below ₹1140, our analysis will be invalid.
3] Nestle India: Buy at ₹23,554.35, target ₹24,700, stop loss ₹22,800.
Nestle India is currently in a robust uptrend, hitting an all-time high at ₹23,554.35. This uptrend is further reinforced by the fact that the stock found support around ₹22,800, which coincides with the 20-day Exponential Moving Average (EMA). This confluence of technical factors indicates a strong foundation for the stock’s current price level.
On the weekly charts, a bullish candlestick pattern accompanied by higher trading volumes suggests increased buying interest and signifies overall market strength. Additionally, the stock is trading above all major moving averages, which is often interpreted as a positive sign by technical analysts.
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The Relative Strength Index (RSI) at around 67 is a useful momentum indicator. While not in overbought territory, it shows that the stock has room for potential upside movement. Considering these technical indicators, investors and traders might view any price dips as buying opportunities.
Based on the above analysis we recommend buying NESTLEIND at CMP of ₹23554.35. It can also be accumulated in dips around ₹23,100 for the target of ₹24,700 with a strict stop loss of ₹22,800.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 14 Oct 2023, 11:42 AM IST