Buy or sell stocks: The Indian stock market joined the global market rally after the US Federal Reserve and Bank of England kept the interest rate unchanged. The Nifty 50 index added 84 points and finished at 22,096 level, the BSE Sensex gained 190 points and closed at 72,831 mark whereas the Bank Nifty index shot up 178 points and finished at 46,863 level. 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 in which, stock market holidays fall on Monday and Friday for Holi 2024 and Good Friday 2024 respectively, Sumeet Bagadia, Executive Director at Choice Broking believes that the Nifty 50 index maintaining above the psychological 22,000 is crucial. The Choice Broking expert said that the 50-stock index has support placed at the 21,850 mark whereas it is facing a hurdle at the 22,200 level. On stocks to buy next week, Sumeet Bagadia recommended three buy or sell stocks — ITC, IndusInd Bank, and Mahindra & Mahindra (M&M).
Stocks to buy next week
Here we list out full details regarding Sumeet Bagadia’s stock recommendations for next week:
1] ITC: Buy at ₹428.60, target ₹455, stop loss ₹415.
ITC share price, currently trading at ₹428.60 levels, exhibits robust support at ₹415 levels, reinforced by its proximity to the 20-day EMA. A minor resistance is noted near ₹438 levels, coinciding with recent highs. Upon breaching this resistance, the stock may ascend toward the target price of ₹455 and beyond.
Daily chart patterns reveal a consistent formation of higher highs and higher lows over the past three days with increasing volumes, signaling underlying strength. The momentum indicator RSI helps this bullish sentiment, 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.
Given these technical indicators, we recommend purchasing ITC shares at the current market price of ₹428.60, with additional buying opportunities available on dips near ₹422 levels. A decisive close below ₹415 would invalidate our analysis, warranting a reassessment of the stock’s outlook.
2] IndusInd Bank: Buy at ₹1512, target ₹1610, stop loss ₹1440.
IndusInd Bank share has demonstrated remarkable resilience, rebounding decisively from the substantial support level of ₹1440, aligning closely with its 200-day EMA. Currently trading at ₹1512.10, the stock’s positioning above key short-term, medium-term, and long-term EMAs underscore its positive momentum, indicating a bullish bias in the market sentiment.
The sustained buying interest, evident through consistent volumes and upward price movement, increases IndusInd Bank shares’ strength. Furthermore, the RSI indicator, presently at 52.13, lends additional support to the bullish sentiment, suggesting favourable conditions for further upward movement.
A modest resistance of around ₹1565, reflective of recent highs, presents a minor hurdle for the stock. Upon breaching this level, IndusInd Bank share may target higher levels, with a potential upside target of ₹1610.
In light of these technical factors, we recommend initiating a buy position on IndusInd Bank shares at the current market price of ₹1512.10. Additionally, investors may consider accumulating the stock at dips near ₹1470 levels. Our medium-term target price stands at ₹1610. However, it’s imperative to note that a close below the critical support level of ₹1440 would invalidate our analysis, necessitating a revaluation of the stock’s trajectory.
3] Mahindra & Mahindra (M&M): Buy at ₹1879, target ₹2020, stop loss ₹1800.
The M&M share price has exhibited notable resilience, staging a robust recovery from the critical support level at ₹1800, coinciding with its crucial 50-day EMA. Currently priced at ₹1878.80, M&M share price has convincingly breached the resistance at ₹1860, also its 20-day EMA, establishing a bullish trajectory above key moving averages.
M&M share price sustained uptrend is further validated by the rebound in the momentum indicator RSI, currently positioned at 53.54 after bouncing from lower levels. This bullish momentum suggests favourable conditions for further upside potential.
Opportunities for entry present themselves on potential pullbacks near the ₹1860 level, providing positional traders with a strategic buying opportunity. The target price of ₹2020, representing a fresh all-time high according to Fib extensions, underscores the stock’s potential for significant upward movement.
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 dips near ₹1860, with a stop loss set at ₹1800 to mitigate downside risk and target a potential high of ₹2020.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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