Buy or sell stocks: Despite mixed trends in the global markets, the Indian stock market ended higher on Friday. The Nifty 50 index finished 186 points higher at 24,502. The BSE Sensex shot up 622 points and closed at 80,519, whereas the Bank Nifty index ended marginally higher at 52,278. The rally in the Indian stock market was fueled by strong buying of Indian IT stocks after strong TCS Q1 results in 2024.
Sumeet Bagadia, Executive Director at Choice Broking, believes that the Nifty 50 index has come out of the consolidation zone, and the 50-stock index is now heading for the next target of 24,800 to 24,900. The Choice Broking expert said that the outlook for the Indian stock market has turned bullish after the nifty 50 index gave a fresh breakout on Friday. Bagadia said that a rally in the IT stocks after strong TCS results could be the reason for a rally on Dalal Street. he expected this rally in the Indian IT stocks to continue on Monday after better-than-expected HCL Tech results on Friday.
Regarding stocks to buy on Monday, Sumeet Bagadia of Choice Broking recommends buying these three buy-or-sell stocks: HCL Tech, Dr Reddy's Laboratories, and Tata Consumer Products.
1] HCL Technologies: Buy at ₹1560, target ₹1680, stop loss ₹1488.
HCL Tech share, a prominent technology firm, has been on an upward trajectory, currently trading at a market price (CMP) of ₹1560.20. This suggests a strong bullish sentiment surrounding the stock. What's particularly encouraging is that HCL Tech share price is trading above its 20-day, 50-day, and 200-day moving averages. This alignment of the stock's price with multiple moving averages is a positive sign for investors, indicating a consistent and sustained uptrend.
Additionally, there's a minor resistance level at ₹1575, which, if broken, could trigger further upward movement. This implies that the stock has the potential to push higher.
The Relative Strength Index (RSI), at 75.29 and on an upward trajectory, suggests increasing buying activity. However, investors should exercise care and watch the stock if it falls below ₹1488, which might negate the favourable outlook.
Based on the above analysis, we recommend buying HCLTECH at the CMP of ₹1560.20 levels. It can also be added on dips near ₹1530 with a stop loss of ₹1488 for the target of ₹1680.
2] Dr Reddy's Laboratories: Buy at ₹6719.45, target ₹7200, stop loss ₹6435.
Dr Reddy's Laboratories share price is currently trading at ₹6719.45 levels, exhibiting a robust technical setup. The stock has consistently formed higher highs and higher lows on the daily charts, a pattern indicative of sustained bullish momentum. This trend signals buyers are in control, pushing the stock to higher levels with each trading session.
One of the critical technical highlights for Dr Reddy's share price is the strong support at ₹6435 levels, which was a significant breakout level previously. This support level is crucial as it can act as a buffer against any potential downside, providing stability and confidence to investors.
Moreover, the stock is trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) Exponential Moving Averages (EMA). Trading above these important moving averages is a positive signal, suggesting that the stock's current uptrend is well-supported across different time frames.
The recent increase in trading volumes further corroborates the strength in Dr Reddy's Laboratories shares. Higher volumes accompanying the upward price movement often indicate strong buying interest and conviction among investors. This can be seen as a bullish sign, reinforcing the stock's positive outlook.
Given these technical indicators, Dr Reddy's Laboratories share appears well-positioned for continued upward movement. Investors holding the stock from lower levels can consider maintaining their positions, with a stop loss set around the ₹6435 support level to protect gains.
Based on the above analysis, we recommend buying Dr Reddy's Laboratories shares at a CMP of ₹6719.45. It can also be added on dips near ₹6570 with a stop loss of ₹6435 for a target of ₹7200.
3] Tata Consumer Products: Buy at ₹1152.25, target ₹1220, stop loss ₹1115.
Tata Consumer share is currently exhibiting positive technical signals in its trading pattern. The stock is trading at ₹1152.25. Also, we have witnessed a close above 1150, which was its prior resistance.
The Relative Strength Index (RSI) at 59.46 indicates a balanced state, suggesting that the stock is neither overbought nor oversold. This equilibrium points towards a stable trend, offering investors a favourable outlook.
In addition, Tata Consumer's share is trading above key moving averages, including the 20-day, 50-day, and 200-day Exponential Moving Averages (EMA). This alignment with multiple EMAs is commonly interpreted as a bullish signal, reinforcing the stock's positive sentiment.
Given these encouraging technical indicators, investors may find Tata Consumer's share an interesting prospect for further analysis and consideration within their portfolios.
With a short to medium-term target price of ₹1220, we advise purchasing Tata Consumer shares at the CMP of ₹1152.25. Our analysis will be considered invalid if the price closes below ₹1115.
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 making any investment decisions.
