[ad_1]
Buy or sell shares: After a strong recovery on Thursday, the Indian stock market fell back into the weak zone. However, bottom fishing was seen in mid-cap and small-cap stocks as the indices posted a strong recovery before the market close. The Nifty 50 index ended 123 points lower but above the 22,000 levels. The BSE Sensex ended down 453 points at 72,643 mark, while the Bank Nifty index fell 195 points south at 46,594 mark. In the broader market, the small-cap index ended up 0.25 percent, while the mid-cap index ended down 0.51 percent.
Stock market strategy for next week
Sumeet Bagadia, CEO, Choice Broking, believes that even though the Indian stock market closed lower on Friday, a strong recovery seen across all indices has set the momentum for the coming week. Choice Broking expert said the small-cap index that closed in the green after losing more than 1.50 per cent at one point during Friday’s trading may set the recovery momentum on Monday. Bagadia said the Nifty 50 index has remained in the range of 21,900 to 22,300 despite high volatility in the Indian market. As for stocks to buy on Monday, Sumeet Bagadia recommended three stocks to buy or sell: Bajaj Finance, Bharti Airtel and HDFC Life.
Stocks to buy next week
1) Bajaj Finance: Buy in $6514, target $7000, stop loss $6275.
Bajaj Finance shares are currently trading at $6514 and has recently consolidated at the bottom with good volume, indicating a possible reversal and a strong uptrend. A break up $6550 Could Drive Bajaj Finance Share Price Towards $7000 level, with immediate resistance at $6800. On the other hand, $6300 serves as a crucial support level. Furthermore, after a prolonged correction, the stock has reversed from the support level. The Relative Strength Index (RSI) is currently at 44, on an upward trajectory, suggesting growing buying momentum. Taken together, these technical indicators imply that the Bajaj Finance stock has the potential to hit the $Target of 7000 in the short term.
To manage risk effectively, it is advisable to set a stop-loss (SL) on $6275 to protect the investment in the event of an unexpected market reversal. A prudent strategy would involve considering buying opportunities on dips in levels around $6400. In summary, based on technical analysis and prevailing market conditions, Bajaj Finance stock seems to present a promising buying opportunity for those targeting a $Target price of 7000. It is essential to implement prudent risk management strategies to weather potential market fluctuations.
2) Bharti Airtel: Buy in $1220, target $1300, stop loss $1164.
Bharti Airtel share price is currently trading at an all-time high of $1220 and recently broke out of a rounded bottom pattern with substantial volume, suggesting a possible reversal and a solid uptrend. A break up $1220 could push the stock higher $Mark 1310, with immediate resistance in $1300. On the contrary, $1170 stands as a crucial support level. Furthermore, after a prolonged correction, the stock recovered from the support level. The Relative Strength Index (RSI) is currently at 67.5, trending up, indicating growing buying momentum. Taken together, these technical indicators suggest that the Bharti Airtel share price has the potential to achieve the $1300 target soon.
To manage risk effectively, it is prudent to set a stop loss (SL) on $1164 to safeguard the investment against unexpected market reversals. A sensible approach would involve considering buying opportunities on pullbacks around $1190. In summary, based on technical analysis and prevailing market conditions, Bharti Airtel share price seems to offer a promising buying opportunity for those looking for a $1310 price target. It is essential to implement sound risk management strategies to weather potential market fluctuations.
3) HDFC Life: Buy in $632.35, target $675, stop loss $605.
HDFC Life share price is currently trading at $632.35 levels, the stock has shown resistance by recovering from solid support in $605, closely aligned with its 20- and 50-day exponential moving average (EMA) levels. Significantly, it is trading above all key moving averages, indicating underlying strength. The Relative Strength Index (RSI), currently at 65, underlines the stock’s bullish momentum. A small resistance in $655 levels poses a modest hurdle. A breakout above this resistance could fuel a further bullish move, with a potential target of $675 and beyond.
Investors can be confident in the stock’s ability to maintain its bullish trajectory, supported by technical indicators. However, it is essential to remain alert to any changes in market dynamics or stock-specific developments that may affect stock performance. Prudent risk management, including establishing appropriate stop-loss levels, is advisable to weather potential market fluctuations and effectively capitalize on the stock’s upside potential.
Based on the above technical analysis, HDFC Life share price can be bought on the CMP of $632.35, you can also add up to $615 with a stop loss of $605 for the purpose of $675.
Disclaimer: The opinions and recommendations above are those of individual analysts, experts and brokerage firms, not those of Mint. We advise investors to consult certified experts before making any investment decisions.
Unlock a world of benefits! From informative newscasts to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Sign in now!