Stock market strategy for next week
Sumeet Bagadia, Executive Director at Choice Broking believes that the Nifty 50 index is standing at a crucial support of 222,500 mark. The Choice Broking expert maintained that the Indian stock market sentiments may turn weak upon breaching below this major support. On the other hand, the 50-stock index is facing a hurdle at 22,750 to 22,800 zone. On breaching above this resistance would mean another 500 points upside in the Nifty 50 index.
On stocks to buy next week, Sumeet Bagadia of Choice Broking recommended three buy or sell stocks for Monday — Bajaj Auto, Nestle India, and Divi’s Laboratories.
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Stocks to buy on Monday
1] Bajaj Auto: Buy at ₹9074, target ₹9900, stopo loss ₹8400.
Bajaj Auto share price is presently trading at ₹9074.15, consolidating above the ₹9000 level and retesting breakout levels with good volume. This upward momentum is supported by a consistent pattern of higher highs and higher lows on the daily chart, along with robust trading volume. These patterns underscore a resilient upward trajectory in the stock. The Relative Strength Index (RSI) stands at 60.74 and is trending upward, indicating a significant surge in buying momentum. Both RSI and Stochastic RSI in the overbought region suggest that positional traders may consider holding their positions and implementing a trailing stop-loss.
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The overall trend for Bajaj Auto share price is bullish, with confluence from various technical indicators reinforcing the optimistic outlook. Given these signals, there is potential for the stock to attain target prices of ₹9600 and ₹9900 in the near term. It is advisable to consider buying on dips, particularly around ₹8700, to capitalize on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at ₹8400 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal.
2] Nestle India: Buy at ₹2536, target ₹2650, stop loss ₹2465.
Nestle India share price, currently trading at ₹2536.20 levels, exhibits a robust support zone within the range of ₹2465 to ₹2490 levels, validating its resilience amidst market fluctuations. The stock has recently demonstrated a noteworthy bounce-back from these support levels, affirming investor confidence in its underlying strength. Further analysis reveals a potential resistance barrier near ₹2570 levels, coinciding with its 20-day Exponential Moving Average (EMA). A breakthrough above this resistance could catalyze a significant upward movement, with a target price projection extending to ₹2650 levels.
Investors are presented with an opportune moment to consider purchasing Nestle India share price at the current market price (CMP). Additionally, accumulation on price dips towards ₹2510 levels could enhance the overall position. However, to mitigate downside risks, it is prudent to implement a strict stop-loss order at ₹2465. The bullish outlook for Nestle India share price is supported by its technical indicators, emphasizing the potential for substantial gains in the near term. By capitalizing on the stock’s resilience and strategically managing risk, investors can position themselves to benefit from the anticipated upward trajectory in Nestle India share price action.
3] Divi’s Laboratories: Buy at ₹3780, target ₹4000, stop loss ₹3700.
Divi’s Lab share price, trading at ₹3779.70 levels, has demonstrated resilience by rebounding from the support levels at ₹3700, reflecting its underlying strength. Divi’s Lab share’s positive momentum is further underscored by its trading above key Exponential Moving Averages (EMAs) – the 20, 50, and 200 – indicating a sustained uptrend and reinforcing a bullish outlook. Moreover, the Relative Strength Index (RSI) stands at 64.27, signaling an upward trend in momentum. This aligns with the recent bullish sentiment observed in Divi’s Lab shares’ performance, suggesting a favourable environment for potential gains.
Considering these technical indicators, investors may view Divi’s Lab share price as a compelling buy opportunity at the current market price (CMP). Accumulation up to ₹3750 levels could also be prudent, allowing investors to enhance their position. With an optimistic outlook, the target price for Divi’s Lab share price is set at ₹4000. However, prudent risk management is essential. Setting a stop-loss order at 3700 will help mitigate potential downside risks, safeguarding investments in the event of adverse price movements.
In conclusion, Divis Lab shares present an attractive investment proposition, supported by its technical strength and positive momentum. Investors should consider capitalizing on the current opportunity while implementing effective risk management strategies.
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 making any investment decisions.
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Published: 13 Apr 2024, 11:37 AM IST