Buy or sell: Sumeet Bagadia recommends three stocks to buy next week

Stock market strategy next week

Sumeet Bagadia, Executive Director at Choice Broking believes that support for Nifty 50 index has shifted little upward at around 19,720 levels whereas the 50-stock index is facing hurdle at 19,850 levels. Choice Broking expert went on to add that Indian stock market would remain range-bound till Nifty 50 index trades in this range. Bullish or bearish trend can be assumed on breakage of either side of this range. 

On stocks to by next week, Sumeet Bagadia recommended three shares to buy on Tuesday when Indian stock market opens after an extended weekend as stock market holiday falls on Monday for Gurunanak Jayanti celebrations across nation. Those three stocks are Lal PathLabs, Tata Motorws and Dalmia Bharat.

Stocks to buy next week

1] Lal Pathlabs: Buy at ₹2595, target ₹2850, stop loss ₹2600.

The current trading price of Dr Lal Pathlab shares stands at ₹2594.65. The stock has recently formed a cup and handle breakout pattern on the weekly chart with significant trading volume, indicating strong momentum in the stock. If the price manages to close above the ₹2740 level, it may have the potential to reach near-term targets of ₹2750 and ₹2850. On the flip side, immediate support levels are situated at ₹2600 and ₹2500.

Also Read: Gandhar Oil IPO: What GMP, subscription signal as focus shifts on allotment date

The Relative Strength Index (RSI) is currently at 59.42 and is trending upward, signaling an increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has recently undergone a positive crossover, emerging from the oversold region. These technical indicators, when considered in conjunction, suggest that LALPATHLAB has the potential to reach a target price of ₹2850 in the near future.

To prudently manage risk, it is advisable to set a stop-loss (SL) at ₹2600. This precaution will help protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and the current market conditions, LALPATHLAB appears to offer an attractive buying opportunity for those targeting a ₹2850 price objective, provided that appropriate risk management measures are in place.

2] Tata Motors: Buy at ₹673, target ₹712, stop loss ₹649.

Tata Motors share price currently trading at ₹673, has recently formed a rounding bottom pattern with significant trading volumes, indicating a potential breakout and has tested the breakout again. Additionally, the auto sector is exhibiting outperformance. Furthermore, TATAMOTOR is presently trading above critical Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, underscoring its bullish momentum and suggesting the potential for further upward price movement.

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The Relative Strength Index (RSI) stands at 60 and is displaying an upward trajectory, signaling an increase in buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) is showing a positive crossover, providing additional support to the bullish outlook. The convergence of these technical indicators suggests that TATAMOTOR may have the potential to reach a target price of ₹712 in the near term.

To effectively manage risk, it is prudent to set a stop-loss (SL) at ₹649. This precautionary measure helps protect the investment in the event of unexpected market reversals or adverse developments. Overall, considering the technical analysis and current market conditions, Tata Motors share presents a promising buying opportunity for those targeting a ₹712 price level, provided that sound risk management measures, including the suggested stop-loss, are implemented.

3] Dalmia Bharat: Buy at ₹2231, target ₹2410, stop loss ₹2140.

The current trading price of Dalmia Bharat share is ₹2231.1. Dalmia Bharat share price has recently exhibited a rounding bottom breakout pattern on the daily chart, accompanied by significant trading volume, indicating robust momentum in the stock. If the price successfully closes above the ₹2250 level, it has the potential to achieve near-term targets of ₹2750 and ₹2850. On the downside, immediate support levels are located at ₹2390 and ₹2410.

Also Read: Tata Technologies IPO: GMP jumps after strong subscription status

The Relative Strength Index (RSI) is presently at 59.12 and is trending upward, signaling an increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has recently undergone a positive crossover, emerging from the oversold region. When considered together, these technical indicators suggest that Dalmia Bharat share could reach a target price of ₹2410 in the near future.

To prudently manage risk, it is advisable to set a stop-loss (SL) at ₹2140. This precautionary measure will help protect your investment in the event of an unexpected market reversal. In summary, given the technical analysis and prevailing market conditions, DALBHARAT appears to present an attractive buying opportunity for those targeting a ₹2410 price objective, provided that appropriate risk management measures are in place.

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 decision.

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Updated: 25 Nov 2023, 01:12 PM IST