Buy or sell stocks: The Indian stock market finished on a higher note despite trading sideways throughout the week. The Nifty 50 index finished at 24,823, logging a weekly gain of 283 points or 1.15 percent. The BSE Sensex ended with a weekly gain of 0.80 percent or 650 points at 81,086. The Bank Nifty index recorded a weekly gain of around 0.83 percent and closed at 50,933. In the broad market, the Small-cap and Mid-cap indices outperformed the frontline Indian indices. The Small-cap index recorded a weekly gain of around 3.40 percent, whereas the Mid-cap index registered a 1.95 percent rise last week.
Sumeet Bagadia, Executive Director at Choice Broking, believes that the Indian stock market may react positively after Jerome Powell reinforced the US Fed rate cut in the September US Fed meeting. The Choice Broking expert said that the Nifty 50 index may touch the 25,000 mark in the near term once it breaches the immediate hurdle placed in the 24,800 to 24,850 range.
Sumeet Bagadia recommended buying Tata Motors, Cola India, and Bharti Airtel on Monday.
1] Tata Motors: Buy at ₹1085.15, target ₹1175, stop loss ₹1040.
Tata Motors share is exhibiting bullish solid momentum, trading at ₹1085.15. The recent bounce back from the crucial support of ₹1070 is a significant technical development, supported by decent trading volumes, reinforcing the strength in the stock. This bounce back suggests a potential continuation of the upward trend, offering an optimistic outlook for investors.
Additionally, Tata Motors' share price is trading above key moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs, further affirming its bullish stance. The momentum indicator, the Relative Strength Index (RSI), is at 55.44 levels.
For traders, keeping an eye on the solid support near ₹1040 is advisable, as a breach of this level could signal a shift in sentiment. Overall, Tata Motors shares' current technical setup suggests a favourable environment for further upside potential, provided traders and investors remain vigilant to potential reversals and closely monitor critical support and resistance levels.
Based on the above analysis, we recommend buying Tata Motors shares at the CMP of ₹1085.15, with a stop loss of ₹1040 and a target of ₹1175.
2] Coal India: Buy at ₹538.85, target ₹575, stop loss ₹520.
Coal India's share price is currently trading at ₹538.85 and has shown a consistent pattern of higher highs and higher lows on the daily chart over the past six days, indicating a strong bullish trend. The stock is trading above all its significant moving averages, including the short-term (20-day EMA), medium-term (50-day EMA), and long-term (200-day EMA), underscoring its current strength and upward momentum. On the downside, Coal India's share price has a robust support level at ₹520, which aligns closely with its 20-day EMA, providing a safety net for investors.
If Coal India's share manages to sustain above the critical resistance level of ₹540, it could trigger a sharp upward movement, targeting the ₹575 mark. Given the current technical indicators and the prevailing bullish trend, we recommend buying Coal India shares at the current market price (CMP) of ₹538.85. To manage risk effectively, a stop-loss (SL) should be placed at ₹520, with a target (TGT) of ₹575.
3] Bharti Airtel: Buy at ₹1506.75, target ₹1575, stop loss ₹1445.
Bharti Airtel's share price is currently trading at ₹1506.75. The stock has formed a higher high and higher low formation after bouncing back from the intense support levels of ₹1445, indicating strength.
Bharti Airtel share price is also trading comfortably above its short-term (20-day), medium-term (50-day) and long-term (200-day) EMA levels. This positioning indicates strong momentum and potential for further gains. Additionally, the stock's volume activity suggests robust investor interest, further supporting a positive outlook.
On the higher side, the stock has a slight resistance near ₹1525 to ₹1540; once the stock surpasses this resistance zone, we can witness a strong up-move. The momentum indicator RSI is also trading comfortably at 59.28 levels, which shows bullish momentum and will help the stock move upward towards the target of ₹1625.
Based on the above analysis, we recommend buying the Bharti Airtel share price at the CMP of ₹1506.75 with a stop loss of ₹1445, with a target of ₹1175.
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.
