Sumeet Bagadia, Executive Director at Choice Broking believes that the Nifty 50 index has witnessed a decent pull-back from its recent lows around the 21,300 mark the 50-stock index is facing a hurdle around the 21,750 zone. However, the Choice Broking expert maintained that the Indian stock market may become bullish once the Nifty 50 index breaches the 21,800 mark decisively.
On stocks to buy next week, Sumeet Bagadia recommended three shares to buy on Tuesday — Ambuja Cements, Bharti Airtel, and Zomato.
Here we list out full details of Sumeet Bagadia’s stock recommendations for Tuesday:
1] Ambuja Cements: Buy at ₹537, target ₹570, stop loss ₹519.
Ambuja Cement shares, currently trading at approximately ₹537.10 levels, exhibit a robust technical posture as it maintain positions above key moving averages—the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) Exponential Moving Averages (EMAs). Notably, the stock has established a firm support zone near ₹519 levels, closely aligned with its 20-day EMA, further fortified by a decisive close above this support level.
This upward trajectory is indicative of the stock’s underlying strength, and recent price movements hint at the potential for a breakout on the charts. The stock’s ability to close above the mentioned support level underscores its resilience, suggesting a favourable environment for further upward movement. Investors are advised to view any dips in the stock, particularly around 530 levels, as buying opportunities.
As the stock gears up for potential upward momentum, a target of ₹570 levels and beyond appears plausible. Investors who entered positions at lower levels are encouraged to implement trailing stop-loss measures to protect gains and maximize the potential of this ongoing positive trend.
According to the aforementioned technical analysis, we advise buying AMBUJACEM on dips. Traders buying at CMP of ₹537.10 levels should add the stock on dips till ₹530 levels for the target of ₹570. If the stock closes below ₹519, our analysis will be invalid.
2] Bharti Airtel: Buy at ₹1125, target ₹1200, stop loss ₹1050.
Bharti Airtel share is currently trading at ₹1125, showcasing a notable 4% surge on January 19, 2024, reaching an all-time high. This upward momentum is supported by a consistent pattern of higher highs and higher lows on the daily chart, accompanied by robust trading volume. These patterns underscore a strong upward trajectory in the stock.
The Relative Strength Index (RSI) stands at 76.58 and is on an upward trend, signifying 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.
The overall trend for BHARTIARTL is bullish, with confluence from various technical indicators reinforcing the optimistic outlook. Given these signals, there is potential for the stock to achieve a target price of ₹1200 in the near term. It is advisable to consider buying on dips, particularly around ₹1100, capitalizing on potential retracements in the stock price. To prudently manage risk, implementing a stop-loss (SL) at ₹1050 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal.
3] Zomato: Buy at ₹135, target ₹143, stop loss ₹130.
Zomato share price, currently trading at ₹135.05 levels, formed a rounding bottom pattern breakout on the daily chart. The current price is exhibiting strong bullish momentum, expected to continue towards the ₹143 level. On the flip side, there is strong support near ₹130.
Moreover, Zomato share price is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, and 200-day EMAs, indicating robust bullish momentum and suggesting potential for further upward price movement. The Relative Strength Index (RSI) is presently at 58.51, showing an upward trajectory and indicating increasing buying momentum. These technical indicators collectively suggest that ZOMATO may have the potential to reach a target price of ₹143 in the near term.
Overall, considering the technical analysis and current market conditions, Zomato share price presents a promising buying opportunity for those aiming for a ₹143 price target, provided that prudent risk management measures are in place. To manage risk effectively, it is advisable to set a stop-loss (SL) at ₹130 to safeguard the investment in the event of an unexpected market turn. A prudent strategy would be to consider buying on dips at levels of ₹132.
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: 22 Jan 2024, 10:20 AM IST