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Buy or sell shares: The Indian stock market joined the global market rally after the US Federal Reserve and the Bank of England kept the interest rate unchanged. The Nifty 50 index added 84 points and ended at the level of 22,096, the BSE Sensex gained 190 points and closed at the level of 72,831, while the Bank Nifty index soared by 178 points and ended at the level of 46,863. In the board market, the small cap index rose more than the Nifty 50 index even as the advance-decline ratio remained positive at 2.7:1.
Stock market strategy for next week
In a truncated week where stock market holidays fall on Monday and Friday for Holi 2024 and Good Friday 2024 respectively, Sumeet Bagadia, CEO, Choice Broking, believes the Nifty 50 index remains above 22,000 psychological is crucial. Choice Broking expert stated that the 50-share index has support at the 21,850 mark, while it is facing a hurdle at the 22,200 level. As for stocks to buy next week, Sumeet Bagadia recommended three stocks to buy or sell: ITC, IndusInd Bank and Mahindra & Mahindra (M&M).
Stocks to buy next week
Here we list all the details about Sumeet Bagadia’s stock recommendations for the coming week:
1) ICT: Buy in $428.60, target $455, stop loss $415.
ITC share price, which is currently trading on $428.60 levels, exhibits solid support in $415 levels, reinforced by its proximity to the 20-day EMA. A small resistance is observed near $438 levels, coinciding with recent highs. By breaking through this resistance, the stock may rise towards the target price of $455 and beyond.
The daily chart patterns reveal a consistent formation of higher highs and higher lows over the past three days with increasing volumes, indicating underlying strength. Aiding this bullish sentiment is the RSI Momentum Indicator, currently at 58.68 and rising. Furthermore, ITC maintains positions above its short-term (20-day) and medium-term (50-day) EMAs, underscoring its positive bias.
Taking these technical indicators into account, we recommend buying ITC shares at the current market price of $428.60, with additional buying opportunities available on near dips $422 levels. A decisive close ahead $415 would invalidate our analysis, warranting a reassessment of the stock’s prospects.
2) Industrial Bank: Buy in $1512, target $1610, stop loss $1440.
IndusInd Bank shares have shown remarkable resilience, decisively recovering from the substantial support level of $1440, aligning closely with its 200-day EMA. Currently listed on $1512.10, the stock’s positioning above the key short, medium and long-term EMAs underlines its positive momentum, indicating a bullish bias in market sentiment.
Sustained buying interest, evident through steady volumes and upward price movements, adds to the strength of IndusInd Bank stock. Furthermore, the RSI indicator, currently at 52.13, provides additional support to the bullish sentiment, suggesting favorable conditions for further bullish movement.
A modest resistance of around $1565, which reflects recent highs, presents a minor hurdle for the stock. By breaking this level, IndusInd Bank stock may aim for higher levels, with a potential upside target of $1610.
In light of these technical factors, we recommend initiating a long position in IndusInd Bank shares at the current market price of $1512.10. Additionally, investors may consider accumulating the stock on near dips. $1470 levels. Our medium-term target price is at $1610. However, it is imperative to note that a close below the critical support level of $1440 would invalidate our analysis, necessitating a reevaluation of the stock’s trajectory.
3) Mahindra and Mahindra (M&M): Buy in $1879, objective $2020, stop loss $1800.
M&M’s share price has shown notable resilience, making a solid recovery from the critical support level in $1800, coinciding with its crucial 50-day EMA. Current price in $1878.80, M&M stock price has convincingly broken through resistance in $1860, also its 20-day EMA, establishing a bullish trajectory above the key moving averages.
The sustained uptrend of M&M’s share price is further validated by the rally of the RSI momentum indicator, currently positioned at 53.54 after bouncing from lower levels. This bullish momentum suggests favorable conditions for further upside potential.
Entry opportunities present themselves in possible pullbacks near the $Level 1860, which provides positional traders with a strategic buying opportunity. The target price of $2020 representing a new all-time high based on Fib extensions underscores the stock’s potential for a significant upward move.
Considering the bullish outlook, we recommend buying M&M shares at the current market price of $1878.80. Additionally, investors may consider accumulating the stock on near dips. $1860, with a stop loss set at $1800 to mitigate downside risk and target maximum upside potential $2020.
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.
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