Buy or sell stocks: Following strong global market sentiments, the Indian stock market ended higher on Friday last week as ease in the US recession fear renewed the US Fed rate cut buzz. The Nifty 50 index finished 396 points north at the 24,540 mark, the BSE Sensex shot up 1,330 points and closed at 80,436, while the Bank Nifty index gained 788 points and ended at 50,515. In the broad market, the BSE Small-cap index skyrocketed 1.70 per cent, whereas the Mid-cap index shot up 1.80 per cent during Friday deals. All sectors ended in green, with IT and realty being the top gainers with over 2 per cent intraday gains.
Sumeet Bagadia, Executive Director at Choice Broking, believes that the Indian stock market trend is bullish. On Friday, the Nifty formed a bull candle and decisively breached the 24,450 hurdle. The Choice Broking expert said that the 50-stock index is now heading for the near-term targets of 24,800 and 25,000.
Regarding stocks to buy on Monday, Sumeet Bagadia recommended three for next week: Container Corporation of India (CONCOR), Adani Port, and Grasim Industries.
1] Container Corporation of India: Buy at ₹978, target ₹1080, stop loss ₹930.
CONCOR's share price is currently trading around ₹978, showing signs of recovery after a sharp sell-off from higher levels. The stock has demonstrated positive momentum, bouncing off from ₹942 levels, which are also close to its long-term (200-day) EMA levels. A sustained increase in volume, coupled with positive price action, could further strengthen the bullish outlook. A breakout above the ₹1,000 level could pave the way for a retest of higher levels around ₹1,080.
The Relative Strength Index (RSI) is currently at 41.43, in the lower range of the neutral zone, indicating that the stock is near an area where buyers might step in. However, traders should monitor resistance near the short-term (20-day) EMA and medium-term (50-day) EMA levels and ensure that the stock holds above key support levels to confirm the continuation of the uptrend.
Based on these technical indicators, we recommend taking a long position in CONCOR at ₹978. Set a stop loss at ₹930 to manage risk and aim for a target price of ₹1080, aligning with the current favourable market sentiment.
2] Adani Port: Buy at ₹1493.45, target ₹1640, stop loss ₹1420.
Adani Port share is in a long-term uptrend, forming higher highs and higher lows daily. The stock has recently entered a consolidation phase, finding support near its demand zones, indicating that the bullish trend will likely continue. If the stock holds above the ₹1,520 level on a closing basis, it is poised to move towards an upward target of ₹1,640.
The Relative Strength Index (RSI) is at 48.44 and is trending upward, signalling increased buying momentum. Adani Port share is also trading around its key moving averages, including its short-term (20-day) EMA and medium-term (50-day) EMA levels, indicating that it may continue its upward momentum.
Given the current technical indicators and price action, Adani Port share appears well-positioned for a potential upward move. Investors might consider buying on dips, with a stop loss set at ₹1420 to manage risk. The target price of ₹1640 aligns with resistance levels and offers a favourable risk-reward ratio, making this a promising trading opportunity.
3] Grasim Industries: Buy at ₹2600.35, target ₹2860, stop loss ₹2500.
Grasim's share price is currently trading at ₹2,600.35. It has recently reversed from a demand zone, forming both a double bottom pattern and a morning star pattern—indicating a potential reversal and a strong bullish trend. Notable trading volumes have supported this reversal. A breakout above ₹2,640 could propel the stock towards ₹2,860. On the flip side, ₹2,500 serves as a crucial support level.
The Relative Strength Index (RSI) is currently at 44.25 and moving upward, suggesting growing buying momentum. These technical indicators imply that Grasim's share price has the potential to reach the ₹2,860 target in the near term. A prudent strategy would be to consider buying opportunities on dips around the ₹2,560 level.
Based on technical analysis and prevailing market conditions, Grasim share price presents a promising buying opportunity for those targeting a ₹2,860 price objective. However, it is crucial to implement sound risk management strategies to navigate potential market fluctuations.
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.
