Buy or sell stocks: Following weak global market trends on rising US-China tension, the Indian stock market ended lower on Friday. The Nifty 50 index corrected 269 points and closed at 24,530, while the BSE Sensex lost 738 points and ended at 80,604. The Bank Nifty index nosedived 355 points and finished at 52,265. Tech outages down 8.8 percent hindered cash market volumes on the NSE. The broad market indices fell more than the Nifty 50 index even as the advance-decline ratio fell to 0.18:1, the lowest in 1.5 months.
Sumeet Bagadia, Executive Director at Choice Broking, believes that the Nifty 50 index has formed a bearish candle after sharp selling at the 24,850 level. The Choice Broking expert said that crucial support for the 50-stock index has now shifted to the 24,200 mark. Bagadia said that the Indian stock market sentiment would turn weak once the Nifty breaches below this crucial support of 24,200.
Regarding stocks to buy on Monday, Sumeet Bagadia recommended buying these three buy or sell stocks: Glenmark Pharmaceuticals, Colgate Palmolive, and Asian Paints.
1] Glenmark Pharmaceuticals: Buy at ₹1412.95, target ₹1525, stop loss ₹1350.
Glenmark Pharmaceuticals share price currently trades at ₹1412.95, showcasing a solid upward trend. The stock's position above all major moving averages highlights its strength and potential for further gains. The minor resistance at ₹1425, an all-time high, is a critical level to watch. If GLENMARK sustains a breakthrough above this resistance, it could accelerate towards the target price of ₹1525 and beyond. The robust volume and price movement suggest investor confidence and potential upside momentum.
We recommend buying Glenmark Pharmaceuticals shares at the current market price of ₹1412.95, leveraging the positive trend observed in the charts. The short—to medium-term target is set at ₹1525, contingent on the stock maintaining its upward trajectory. This recommendation is backed by strong technical indicators and market sentiment favouring continued growth.
However, our analysis and buy recommendation will be invalidated if the stock closes below ₹1350, as this would indicate a potential reversal or significant correction. Investors should maintain this level to stop loss and manage risk effectively.
2] Colgate Palmolive or COLPAL: Buy at ₹3120.95, target ₹3370, stop loss ₹2980.
The COLPAL share price has exhibited a noteworthy rebound from the support level of ₹2980, which is also close to its 20-day EMA levels, currently trading at approximately ₹3120.95. The stock's positioning above its 20-day, 50-day, and 200-day Exponential Moving Averages (EMA) signals a positive trend, reflecting strength in its current trajectory. The momentum indicator, Relative Strength Index (RSI), comfortably rising to 74.83 levels, underscores the stock's robust performance.
A minor resistance is observed at ₹3150 levels. A successful breach of this level could propel COLPAL share towards the target of ₹3370 and beyond, suggesting further potential upside.
Investors and traders may find this technical analysis valuable for assessing COLPAL's current strength and potential future movements. However, it's essential to consider broader market conditions and conduct thorough research before making investment decisions.
Based on the above analysis, we expect COLPAL to move higher towards ₹3370. Hence, we recommend buying COLPAL at a CMP of ₹3120.95 with an SL of ₹2980.
3] Asian Paints: Buy at ₹2946, target ₹3190, stop loss ₹2840.
Asian Paints share is currently trading at ₹2946.05 levels, above both the 20-day and 50-day EMA, indicating strength in the short term. A more minor resistance is placed at 3030 levels, representing a recent high. Once the stock sustains above this level, it has the potential to move further towards the ₹3190 level.
Additionally, the Bollinger Bands on the daily chart are squeezed, suggesting a potential for increased volatility. After testing the lower band, the price remains above the middle line of the Bollinger Band, indicating the stock's strength and potential for an upward move, breaking through the higher band.
Furthermore, the RSI indicator comfortably trades near 52.40 levels, indicating that the stock may continue to rise. This RSI level suggests that the stock is neither overbought nor oversold, providing room for upward movement. Overall, the technical indicators point to a positive outlook for the stock, with the potential for further gains if it surpasses the ₹3030 resistance level.
With a medium-term target price of 3190, we advise purchasing Asian Paints shares at the CMP of ₹2946.05. It can also be accumulated close to ₹2900 levels. Our analysis will be considered invalid if the price closes below ₹2840.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
