Buy or sell stocks: After falling for three straight session on weak global market sentiments, Indian stock market ended higher on Friday. NSE Nifty added 135 points and closed at 19,517 levels, BSE Sensex went up 480 points and finished at 65,721 mark whereas Bank Nifty index shot up 366 points and ended at 44,879 levels. In broad market, small-cap index went up 0.66 per cent while mid-cap index surged 0.65 per cent respectively.
Stock market strategy for next week
Sumeet Bagadia, Executive Director at Choice Broking believes that Nity today has strong support at 19,250 levels and it is facing resistance at 19,600 to 19,650 levels. Choice Broking expert maintained that bullish or bearish trend can be assumed on breakage of either side of the range. Till then one should maintain ‘buy on dips’ strategy and maintain strict stop loss while taking any position. He advised stock market investors to maintain stock specific strategy in case of any strong cue as Q1 results 2023 are underway.
Stocks to buy next week
On stocks to buy next week, Sumeet Bagadia listed out three shares to buy next week and those three stocks are BEL, HDFC Bank and Wipro.
Here we list out full details in regard to those Sumeet Bagadia’s stock recommendations:
1] BEL: Buy at ₹127.60, target ₹133.25, stop loss ₹123.65.
BEL share price has corrected from the new all-time high level of ₹133.25 but has shown a bounce from the initial support itself. BEL share price has formed a strong support at ₹123.65 levels. Currently, the stock is trading around ₹127.60 levels. A smaller resistance is visible on the charts near ₹129 levels. Once the stock overcomes the previously mentioned resistance, it will be able to move closer to the target price of ₹133 and higher. The stock is trading above all important moving averages. RSI is also trading comfortably at 55 levels indicating strength.
Based on the above analysis we recommend buying BEL at CMP of ₹127.60 it can also be added near ₹125.5 levels with a medium term target price of ₹133.25. Our analysis will be deemed void if price closes below ₹123.65 levels.
2] HDFC Bank: Buy at ₹1652, target ₹1705, stop loss ₹1620.
HDFC Bank share price has bounced from the strong support of ₹1625 levels, which is also close to 20 Day EMA. The stock is currently trading at ₹1652, which is also above the all the important moving averages. The stock has demonstrated strength as evidenced by the on-going volumes and upward movement of the stock. The RSI indicator is also comfortably trading at 48 levels, which will support the upward movement of the stock. The stock has a smaller resistance level around ₹1675, which is also the recent top. Once stock surpasses the above mentioned level the stock can move towards ₹1705 levels and above.
We recommend buying HDFC Bank shares at CMP of ₹1652 with a medium-term target price of ₹1705. Our analysis will be deemed invalid if the price closes below ₹1620.
3] Wipro: Buy at around ₹408, target ₹421 to ₹425, stop loss ₹398.
Wipro share price is holding above ₹402 critical levels, and significant traction is expected, strengthening the stock bullishness. Stock is trading above 20 and 50 EMA, indicates strength in price action. Wipro share price is trading above the middle Bollinger band and positive crossover is indicated in RSI and MACD suggests continuity in the bullish trend in the near term. Moreover it is also forming Higher High Higher Low formation in the Daily chart.
Hence, based on the above technical structure one can initiate a long position at CMP ₹408.85. However, on the safer side nearby ₹405 to ₹404 levels would be a better range to enter. Closing and sustaining above ₹412 will lead towards ₹421 to ₹425 levels in coming days. SL can be kept as ₹398.
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: 05 Aug 2023, 10:47 AM IST