Buy or sell stocks: Following fears of a slowdown in the US labour market and US inflation, the Indian stock market ended lower for the third straight session on Friday. The Nifty 50 index lost 292 points and closed at 24,852, the BSE Sensex lost 1,017 points and closed at 81,183, whereas Nifty Bank corrected 896 points and closed at 50,576.
Cash market volumes on the NSE rose 7.4% compared to the previous session. The Mid-cap index fell more than the Nifty 50 index even as the advance-decline ratio fell sharply to 0.35:1.
Sumeet Bagadia, Executive Director at Choice Broking, believes that the Indian stock market bias has turned weak. The Nifty 50 index has lost its crucial support at 24,900. The Choice Broking expert said the near-term support for the Nifty today is in the 24,750 to 24,800 zone.
Regarding stocks to buy, Sumeet Bagadia recommended buying these three shares on Monday: Hero MotoCorp, Marico Industries, and Bajaj Finance.
1] Hero MotoCorp: Buy at ₹5743.75, target ₹6205, stop loss ₹5520.
Hero MotoCorp's share price currently trades at ₹5,743.75, exhibiting a robust long-term uptrend. The stock has consistently formed higher highs and higher lows over the past few months, indicating a bullish pattern. It recently experienced a V-shaped recovery from its demand zones, supported by a significant increase in trading volumes. If Hero MotoCorp's share can sustain its position above ₹5,800, it will likely continue its upward momentum toward a target of ₹6,205.
The Relative Strength Index (RSI) is at 70.08 and trending upward, signalling increased buying momentum. Hero MotoCorp share has bounced from its key moving averages, including the 20-day and 50-day EMAs, further reinforcing a bullish outlook.
Given these technical indicators, we recommend taking a long position in Hero MotoCorp share at ₹5,743.75, with a stop loss set at ₹5,520 to manage risk and a target price of ₹6,205, in line with the favourable market sentiment.
2] Marico: Buy at ₹665.25, target ₹725, stop loss ₹636.
Marico's share price is currently ₹665.25 and in an upward trend, forming higher highs and lows on the daily chart. The stock trades within a rising parallel channel and consolidates near historical peaks. Signs of a reversal from demand zones, backed by notable trading volumes, suggest strength. If Marico's share surpasses the ₹675 mark, it could potentially advance towards a target range of ₹710 to ₹725.
The Relative Strength Index (RSI) is at 52.95, with a positive crossover, suggesting increased buying momentum. Additionally, Marico's share price has found support near its key moving averages, including the short-term (20-day) EMA and medium-term (50-day) EMA levels, reinforcing its bullish trajectory.
Based on the technical setup and indicators (RSI and moving averages), buying Marico shares at ₹665.25 with a stop loss of ₹636 and a target price of ₹725 offers a compelling opportunity for potential gains.
3] Bajaj Finance: Buy at ₹7317.15, target ₹7905, stop loss ₹7020.
Bajaj Finance share is currently trading at ₹7,317.15 and shows signs of a potential breakout from a consolidation range. The stock has rebounded from its support zones and has moved above key moving averages, including the short-term (20-day) EMA, medium-term (50-day) EMA and long-term (200-day) EMA levels, indicating a possible trend reversal. If Bajaj Finance's share holds above the ₹7,420 level, it could continue its upward trajectory toward a target range of ₹7,850 to ₹7,905.
The Relative Strength Index (RSI) is at 67.20 and trending upward, suggesting increasing buying momentum. The stock's movement above its key moving averages reinforces a bullish outlook, indicating that it may continue its upward momentum.
Based on these technical indicators, we recommend taking a long position in Bajaj Finance share at ₹7,317.15, with a stop loss at ₹7,020 to manage risk and a target price of ₹7,905, in line with the current favourable market sentiment.
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.
