Stock market strategy for next week

Sumeet Bagadia, Executive Director at Choice Broking believes that after a brief consolidation Nifty has managed to reach 19,550 hurdle on closing basis, which hs improved market sentiment from ‘cautious’ to ‘bullish’. Choice broking expert went on to add that Nifty is now in 19,300 to 19,900 range and it may test 20,000 levels if it manages to remain above 19,500 levels in next one to two sessions next week. On stocks to buy next week, Sumeet Bagadia recommended three stocks and those three shares are Tata Consumer, Cipla and Larsen and Toubro (LT).

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

1] Tata Consumer: Buy at ₹851.50, target ₹900, stop loss ₹825.

Tata Consumer share price is currently trading near ₹851.50. The stock has formed a hammer pattern on daily chart along with a Bullish Engulfing pattern, which indicates the reversal of bearish trend in stock. The Strength is shown by the RSI indicator’s current trading range of 57 levels. The stock is currently trading above all of the key moving averages. The Bollinger band continues to expand on the daily chart, with the price trading above the band’s centre line, indicating the stock’s strength. A small resistance is placed near ₹860 levels; if the stock surpasses this level, it may move towards ₹900 levels and higher.

With a medium-term target price of ₹900, we advise purchasing Tata Consumer shares at the CMP of ₹851.5. It can also be accumulated close to ₹835 levels. If the price closes below ₹825, our analysis will be regarded as being invalid.

2] Cipla: Buy at ₹1030, target ₹1055 to ₹1065, stop loss ₹1010.

Cipla share price has strong support zone around the ₹1015-985 zone after rising from lower levels. Additionally, the stock has surpassed resilient levels of ₹1000. On weekly charts, the stock displayed a bullish candle, indicating strength. The RSI indicator is also maintaining above 64 levels, showing that there is much room available for the stock to inch higher. The stock is maintaining the 20 EMA on the daily chart, indicating further solid traction.

Therefore, one can start a long position at CMP of ₹1030 based on the technical framework. However it would be better to add more at ₹1030 to ₹1020 level range. Closing and sustaining above ₹1038 will move prices in the following days towards ₹1055 to ₹1065 levels. SL may remain at ₹1010.

3] LT: Buy above ₹2475, target ₹2570 to ₹2600, stop loss ₹2440.

In the daily time frame, the stock is exhibiting a Higher High – Higher Low pattern, indicating a bullish trend that is likely to continue. This observation is supported by the gradual increase in trading volume and the upward movement of prices. Additionally, the stock is currently trading above its 20-day Simple Moving Average, further bolstering the bullish sentiment.

Furthermore, RSI and MACD validate the positive trend. These indicators provide additional confirmation of the stock’s upward momentum. On the hourly charts, the stock is following a gradual upward trajectory within a rising parallel channel pattern. This pattern suggests a sustained bullish outlook in the short term.

Closing and sustaining above ₹2485 will lead prices in the following days towards ₹2570 to ₹2600 levels. SL may remain as ₹2440.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

Updated: 15 Jul 2023, 10:27 AM IST