Stock market strategy for next week

Sumeet Bagadia, Executive Director at Choice Broking believes that market is in uptrend and the rally may continue for near term on RBI’s move to pause interest rate. Sumeet Bagadia of Choice Broking said that Nifty today is in 17,300 to 18,00 range whereas Nifty Bank index is in 40,500 to 41,700 range. The technical expert advised investors to maintain buy on dips till the lower levels on both indices are maintained.

Stocks to buy on Monday

On buy or sell stocks that one can look at when Indian stock market opens on Monday, Sumeet Bagadia recommended three stocks to buy next week and those three buy or sell stocks are Sun Pharma, DLF and IGL.

Here we list out full details given by Sumeet Bagadia in regard to those by or sell stocks:

1] Sun Pharma: After decent consolidation, Sun Pharma share price has formed rounding bottom pattern in the daily chart, indicating strength in price action. Stock is trading higher than 20 and 50 day moving averages. The price has rebounded from lower Bollinger band, also positive crossover is indicated in RSI and MACD suggests buying interest in the near term.

Price is sustaining above ₹1000, which is 0.50 per cent of Fibonacci retrenchment. Hence, based on the above technical structure one can initiate a long position at CMP ₹1012. However, on the safer side nearby ₹1000-1005 levels would be a better range to enter. Closing and sustaining above ₹1020 will lead towards ₹1060-1070 levels in coming days. SL can be kept at ₹975.

2] DLF: In ₹365-360 range, DLF share price has multiple solid supports. The stock is currently trading around 381. On the charts, little resistance is apparent near the ₹383 level. After breaking through the previously mentioned resistance, the stock will be able to move closer to the target price of ₹410 and higher. The stock created a bullish candle on weekly charts, signaling strength. The RSI indicator is also approaching 54, indicating that the stock has room to rise further. On the daily chart, the stock has broken out above the 200-day EMA, which is a strong indication.

According to the aforementioned technical analysis, we advise buying DLF at the current market price of ₹382.90. Additionally, the stock could be accumulated near ₹375-377 levels with a target price of 410. If the stock closes below 368, our analysis will be invalid.

3] IGL: The stock is currently trading at 52 week high. IGL share price was facing multiple resistances in the range of ₹445-455 levels since September 2022. The stock has strongly moved on higher side and hence we can witness a breakout on charts. This breakout is supported with good volumes which indicate strength. Now any dip in the stock around ₹450 levels will be a buying opportunity. The investors holding from lower levels should keep trailing stop loss.

According to the aforementioned technical analysis, we advise buying IGL on dips. Traders buying at CMP of ₹462.4 levels should add the stock on dips till ₹450 levels. The stock can now further move towards ₹490 levels and higher. If the stock closes below ₹440, our analysis will be invalid.

Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.