Buy or Sell Stock: After witnessing a sharp selloff on Thursday, the Indian stock market made a sustained bounce from the lows and closed with gains on Friday. The Nifty 50 index closed 64 points higher at 21,782, the BSE Sensex was up 167 points and closed at 71,595, while the Nifty Bank index closed 622 points higher at 45,634. However, broader market indices remain weak. The small-cap index declined by 1.36 per cent while the mid-cap index fell by 0.82 per cent.
stock market strategy for short term
Sumeet Bagadia, Executive Director, Choice Broking believes that the stock market sentiment has improved after Friday's comeback. Choice Broking expert further said that after making immediate base at 21,650 areas, Nifty 50 is now facing hurdles at 21,800 levels. Bagadia said Dalal Street trends could further improve once the 50-stock index gives a decisive breach above 21,800 points on a closing basis.
On stocks to buy on Monday, Sumeet Bagadia of Choice Broking recommended three stocks to buy on Monday – Sun Pharma, ICICI Bank and Ambuja Cements.
Stocks worth buying on Monday
1]Sun Pharma: buy at 1534, target 1575, stop loss 1499.
Sun Pharma's share price is trading at 1534 level and recently it displayed a strong breakout above the key resistance level 1500. This breakout is supported by strong trading volumes, indicating substantial inflow of market participants and underlying strength in the stock's movement.
A noteworthy aspect is that the share price of Sun Pharma is trading above all the important moving averages, which emphasizes the overall positive trend in the stock. This alignment reinforces bullish sentiment and provides additional confirmation of the stock's upward trajectory.
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The breakout level at 1500 has been surpassed, which is now expected to act as a strong support level. This adds a layer of resilience to the stock, as it suggests that previous resistance has now turned into a strong support zone.
The momentum indicator, Relative Strength Index (RSI), is currently at the level of 79.76, indicating an uptick in momentum. This further supports the bullish outlook, suggesting the stock may have more room to climb before potentially reaching overbought conditions.
Based on the above analysis we recommend buying Sun Pharma share price on CMP 1534 It can also be added to nearby dips Target Rs 1515 With stop loss of 1575 1499.
2]ICICI Bank: buy at 1010.70, target 1111, stop loss 960.
ICICI Bank share price is currently trading at Appears to be in a consolidation phase within the range of 1010.7 level and from 960 1050. This range is aligned with a strong support zone at 980, which includes the 100-day exponential moving average (EMA). The convergence of these factors suggests significant levels of stability and potential opportunity for traders and investors.
Consolidation within this range reflects a delicate balance between buying and selling pressure, indicating a period of price discovery and market participants reevaluating their positions. It is noteworthy that the support area includes the 100-day EMA, further strengthening its importance.
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A possible breakout above the upper limit of this consolidation range, especially above The 1050 level could act as a catalyst for a bullish move. In such a scenario, traders can consider taking advantage of the upward momentum by setting targets 1111 and possibly beyond. The momentum indicator, Relative Strength Index (RSI), is currently at the level of 51.5, indicating a neutral stance.
Traders and investors are advised to closely monitor price action and remain alert for potential breakouts. support range, especially around The 960 level can serve as a strategic entry or exit point. Overall, the analysis points to a cautiously optimistic outlook for ICICI Bank shares, contingent on a decisive breakout above the upper boundary of the consolidation range.
3]Ambuja Cements: buy at 576.20, target 600, stop loss 550.
Ambuja Cement shares are currently trading At the level of 576.2, the stock has successfully established a strong support level 552.5, closely associated with its 20-day exponential moving average (EMA). This convergence reinforces the importance of the support zone, indicating a strong base for the stock.
Furthermore, Ambuja Cements' stock price above its essential moving average emphasizes its bullish sentiment, which reflects positive investor confidence in the stock's potential. The alignment with the 20-day EMA adds a layer of technical support, confirming the stock's upward trajectory.
The Relative Strength Index (RSI) is a key indicator, which is currently at a comfortable 65 level. This refers to the underlying strength of the stock and its ability to maintain its current course. The RSI reading reinforces the positive sentiment and suggests that AMBUJACEM may have the momentum to continue its upward momentum.
Based on the above technical analysis, investors holding Ambuja Cements share price can consider applying trailing stop loss to protect profits, as the stock has the potential to rise further. 600 level. This active risk management approach allows investors to secure profits while remaining in a position to capitalize on potential further gains.
Based on the above analysis we recommend buying Ambuja Cement shares at CMP It can also be added on decline to 576.2 with stop loss of 565 Target Rs 550 600.
Disclaimer: The above views and recommendations are those of individual analysts, experts and broking companies and not of Mint. We recommend investors to check with certified experts before taking any investment decision.
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