Buy or sell: Sumeet Bagadia recommends three stocks to buy next week


Buy or sell stocks: Following weak global market sentiments on renewed fear of US Fed rate hike, Indian stock market ended lower on Friday. NSE Nifty lost 114 points and closed at 19,428 levels, BSE Sensex corrected 365 points and finished at 65,322 mark whereas Bank Nifty index went down 342 points and ended at 44,199 levels. Broad market indices fell less than the Nifty even as the advance decline ratio dipped to 0.65:1.

Stock market strategy for next week

Sumeet Bagadia, Executive Director at Choice Broking believes that Nifty today has support placed at 19,250 to 19,300 levels and breaching this support decisively would mean further downside trend. On the upper side, Sumeet Bagadia said that the index has hurdle placed at 19,650 levels whereas strong resistance for the index is placed at 19,800 levels. To hit a new high or touch 20,000 levels, Nifty needs to sustain above 19,800 on closing basis. On stocks to buy next week, Sumeet Bagadia recommended three shares — Bharti Airtel, Coal India and Grasim Industries.

Here we list out full details in regard to Sumeet Bagadia’s stock recommendations:

1] Bharti Airtel: Presently trading at 870, Bharti Airtel shares exhibit a notable market stance supported by a robust foundation. The stock has found itself positioned at a commendable support level of 865, a point that not only underpins its current valuation but also signifies a broader range of consolidation spanning from 865 to 900. Of particular significance is the stock’s reliance on the 865 level, which coincides with the 100-day Exponential Moving Average (EMA), further emphasizing its resilience within this price band.

As the stock navigates its current juncture, the prospect of a favorable accumulation phase becomes apparent. The consolidation zone between 865 and 900 could potentially serve as a launchpad for future upward movement. Bharti Airtel’s alignment with the 100 EMA at 865 lends credence to the notion of sustained support, providing investors with an opportunity for strategic accumulation.

In light of these factors, Bharti Airtel emerges as a candidate for prudent consideration, poised at a level that offers both support and potential accumulation opportunities.

2] Coal India: Shares of Cola India Ltd have formed a strong support near 230 levels which is also close to its 50 Day EMA. Currently, the stock is trading around 234.90 which are above its short term (20 Day) medium term (50 Day) and Long term (200 Day) exponential moving averages. A small hurdle is visible on charts near to 237 levels. Once the stock overcomes the previously mentioned resistance, it will be able to move closer to the higher levels of 248. The momentum indicator RSI is also trading comfortably at 54 levels indicating strength. The stock has bounced above the middle band of the Bollinger band. Once stock approaches the upper band the expansion of the Bollinger band will lead the stock move on the higher side.

Investors and traders can buy Coal India shares at the current market price of 234.90. It can also be added up to 231 with a proper stop loss of 227 for a target price of 248.

3] Grasim Industries: In the daily time frame, Grasim Industries share price is moving in Higher High –Higher Low formation suggesting bullish trend and may continue its ongoing trend. Gradual rise in volume confirms bullishness in the trend. Scrip has taken support of 50 and 20 Simple Moving Averages.

Indicators such as RSI and MACD confirm the positive trend. Scrip has given breakout of resistance zone of 1790 to 1800 and is sustaining above the said levels. In the hourly chart, Post reversal the stock has multiple supports in a falling channel.

Closing and sustaining above 1835 will lead towards 1890 to 1910 levels in coming days. However, on the safer side nearby 1805-1810 levels would be a better range to enter. SL can be kept as 1765.

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: 12 Aug 2023, 12:30 PM IST

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