The 30-share BSE Sensex closed 282.88 points, or 0.44%, higher at 64,363.78, while the broader NSE Nifty 50 gained 97.35 points, 0.51%, to settle at 19,230.60, on Friday.
Gains in broader markets also supported the rally. The Nifty Midcap 100 index rose 0.70%, while the Nifty Smallcap 100 index surged 1.21%.
Read here: Nifty 50, Sensex rise for second consecutive session; investors’ wealth rise by about ₹2 lakh crore
Stock market strategy for Monday
Sumeet Bagadia, Executive Director at Choice Broking is bullish on three stocks for the next week. These three stocks are ICICI Bank, Tech Mahindra and Oil & Natural Gas Corporation (ONGC).
Based on the technical analysis, Bagadia believes these three stocks have the potential for further upside. Here are key recommendations by Sumeet Bagadia:
ICICI Bank
ICICI Bank’s technical analysis presents a promising picture for traders and investors. The stock has exhibited several positive signs. ICICI Bank shares have managed to surpass the initial resistance at ₹925 levels, which is also the 200-day Exponential Moving Average (EMA). This is a significant achievement as breaking through this resistance suggests a strong bullish sentiment.
ICICI Bank share price is currently trading around ₹933.80 levels, indicating a breakout above the mentioned resistance level. It is also trading above the 20 and 200-day EMAs, reinforcing the notion of strength and an established uptrend.
There is a smaller resistance level at ₹945, which coincides with the 50-day EMA. If the stock manages to breach this level, it could potentially advance towards a target of ₹975 and beyond.
Based on the above analysis we expect ICICI Bank to move higher towards ₹975 and hence we recommend buying ICICI Bank at CMP of ₹933.80, it can also be accumulated on dips near ₹915 with a Stop Loss of ₹900, Bahadia said.
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Tech Mahindra
Tech Mahindra is currently priced at ₹1,133. After a correction, the stock has shown a reversal pattern, forming new higher lows on the daily chart. This reversal is supported by significant trading volume. The immediate support levels for Tech Mahindra are at ₹1,100 and ₹1,080, while resistance levels are at ₹1165 and ₹1210.
The Relative Strength Index (RSI) is currently at 36.6 and is trending upwards. This indicates a growing buying momentum. Furthermore, the Stochastic Relative Strength Index (Stoch RSI) has recently had a positive crossover from the oversold region. These technical indicators combined suggest that Tech Mahindra has the potential to reach a target price of ₹1,210 in the near term.
To effectively manage risk, it is advisable to implement a stop-loss (SL) at ₹1,095. This will protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and the current market conditions, TECHM seems to offer an attractive buying opportunity for those targeting a ₹1,210 price target, as long as prudent risk management measures are in place.
ONGC
ONGC is currently trading at ₹190, demonstrating a positive trend. The stock has successfully surpassed its short, mid, and long-term moving averages of 50, 100, and 200 EMA, indicating strength in its upward momentum.
The Relative Strength Index (RSI) stands at 61, suggesting a healthy balance between buying and selling pressure. Additionally, the Average Directional Index (ADX) is moderately strong at 22, further affirming the stock’s positive trajectory.
With a sideways to positive bias, ONGC recently broke out of its resistance level around ₹189 after a period of consolidation. This breakout signifies a potential upward movement in the stock’s value. Considering these factors, it appears to be an opportune time for investors to consider a position in ONGC at its current price of ₹190. Setting a stop loss at ₹180 would provide a reasonable buffer for potential downside risk, while targeting a price of ₹205 presents a favourable upside potential.
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: 04 Nov 2023, 09:05 AM IST