Buy or sell stocks: Following weak global market sentiments, the Indian stock market snapped its five-day winning steak on Friday. The Nifty 50 index crashed 311 points and closed at 24,699. The BSE Sensex tanked 885 points and ended at 80,981, whereas the Bank Nifty index corrected 226 points and finished at 51,337. The global market's bias has weakened further after the higher jobless claim data in the US followed the bloodbath on Wall Street on Friday.
According to Sumeet Bagadia, Executive Director at Choice Broking, global cues have further weakened after the US stock market bloodbath. The Choice Broking expert advised investors to remain vigilant about the important levels as the Indian stock market is expected to remain highly volatile when it opens on Monday. Bagadia said that the Nifty today has crucial support placed at 24,400, and one can expect a bounce back if this support remains sacrosanct. If the 50-stock index breaches below this support decisively, then Dalal Street sentiment may become weak.
Sumeet Bagadia recommended three stocks to buy or sell on Monday: Divi's Laboratories, Nestle India, and Naukri.
1] Divi's Laboratories: Buy a ₹4991.25, target ₹5370, stop loss ₹4780.
The daily chart of Divis Lab shares shows a positive trend with higher highs and higher lows, forming a solid bullish candle at the current price of ₹4991.25. This bullish sentiment is supported by notable trading volumes, indicating strong buying interest. If the stock stays above ₹4980, it will likely move towards a target of ₹5370, reflecting the continuation of the current uptrend.
The Relative Strength Index (RSI) currently stands at 75.18 and is trending upward, indicating increasing buying momentum. Moreover, Divis Lab's share price is trading above its key moving averages, including the short-term (20-day) EMA and medium-term (50-day) EMA, indicating strength in the bullish trend.
Based on positive trend indicators and strong technical signals, DIVISLAB is poised for further gains. It is recommended that you buy it at CMP at ₹4991.25. Additionally, consider buying the dips until ₹4880, with a strategic stop-loss of ₹4780. The potential upside target is ₹5370.
2] Nestle India: Buy at ₹2495.10, target ₹2650, stop loss ₹2410.
Nestle India's share price currently trades at ₹2495.10 and is in a consolidation phase. It is finding support near its long-term (200-day) EMA with decent trading volumes. This strong support level indicates that the stock will likely hold its ground and potentially rebound towards upside resistance. If Nestle India's share price maintains its position above this support, it is well-positioned to move towards an upward target of ₹2650.
The Relative Strength Index (RSI) is currently at 42.85, indicating a moderate recovery and suggesting that the stock is gaining strength. On the upside, a minor hurdle at ₹2530 is also close to its short-term (20-day) EMA and medium-term (50-day) EMA levels. Sustaining above these levels could pave the way for further upward movement.
Based on this analysis, we recommend buying Nestle India's share price in cash at ₹2495.1 with a stop loss (SL) at ₹2410 and a target (TGT) at ₹2650. This trade setup aligns with the bullish technical indicators observed in the stock.
3] Naukri: Buy at ₹7220.50, target ₹7800, stop loss ₹6925.
Naukri's share price has formed a bullish engulfing candle on the daily chart, signalling a continuation of the current uptrend. The stock has broken out above its recent high, with strong trading volumes reinforcing the bullish momentum. Naukri share has also bounced off its short-term (20-day) EMA, suggesting the uptrend will continue. If the price remains above ₹7250, it could advance towards an upside target of ₹7800.
The RSI is at 63.44 levels, with a positive crossover, indicating an increase in buying momentum. Additionally, Naukri's share has bounced back from its short-term (20-day) EMA and is trading above its medium-term (50-day) EMA, reinforcing the bullish outlook.
Given the current technical indicators and price action, Naukri share appears well-positioned for a potential upward move. Investors should consider buying at ₹7220.5, with a stop loss set at ₹6925 to manage risk. The target price of ₹7800 aligns with resistance levels and offers a favourable risk-reward ratio, making this a promising trade opportunity.
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.
