Buy or sell stocks: Despite strong global cues on rising optimism for the US Fed rate cut, the Indian stock market remained sideways on Friday last week. The Nifty 50 index finished marginally higher at 24,168, whereas the BSE Sensex went off 53 points and closed at 79,478. The Bank Nifty index crashed 443 points and ended at 52,290. However, the broad market outperformed the frontline indices of the Indian stock market. The small-cap index ended 0.70 percent higher while the mid-cap index went up 0.75 percent in the previous session.
Stocks to buy on Monday
Sumeet Bagadia, Executive Director at Choice Broking, believes that overall Indian stock market sentiment is positive as the Nifty 50 index is sustaining above 24,000. The Choice Broking expert said that the 50-stock index has gained over 300 points in the week gone by, and the frontline index is looking set to touch the near-term target of 24,500. Bagadia advised a buy-on-dips strategy until the Nifty 50 index is above 23,900.
Regarding stocks to buy next week, Sumeet Bagadia recommended buying these three buy-or-sell stocks on Monday: State Bank of India (SBI), Marico, and ONGC.
Stock market strategy for next week
On the outlook for the Indian stock market, Sumeet Bagadia said, “The Nifty 50 index has gained over 300 points last week, and the 50-stock index is sustaining above 24,000 despite a profit-booking trigger on Friday. The BSE Sensex also retraced from its upper hurdle range of 80,650 to 80,700. However, the 30-stock index looks bullish as it is sustaining above its crucial support, which is in the 78,500 to 79,000 range. As the Q1 results for the 2024 season have begun, I suggest that stock market investors and intraday traders maintain a buy-on-dips strategy and avoid taking any short position as the overall sentiment on Dalal Street is still positive.”
Buy or sell stocks for Monday
1] SBI: Buy at ₹859.75, target ₹940, stop loss ₹825.
SBI’s share price is currently positioned at a crucial juncture in its trading dynamics. With a robust support base at ₹825 levels, near its 50-day Exponential Moving Average (EMA), the stock is resilient. Trading at approximately ₹859.75 levels, SBI shares exhibit strength by maintaining levels above key moving averages.
The charts unveil a minor resistance barrier at ₹895 levels, a threshold the stock needs to surpass to pave the way for an upward trajectory. A successful breach of this resistance could propel SBIN towards its target price of ₹940 and beyond. The Relative Strength Index (RSI) at a comfortable 58.49 further bolsters the case for strength in the stock.
Investors and traders alike should closely monitor SBIN’s performance around the noted levels. A breakout from the resistance can signify a bullish phase, offering potential opportunities for those eyeing upward movements in the stock.
Based on the above technical analysis, we recommend buying SBI shares at a CMP of ₹859.75; it can also be added on dips near ₹835 with a SL of ₹825 for the target of ₹940.
2] Marico: Buy at ₹615.35, target ₹650, stop loss ₹600.
Marico share price is currently trading at ₹615.35 levels; the stock has demonstrated a strong rebound from the robust support level of ₹600, which lies just close to its 50-day Exponential Moving Average (EMA). This recovery indicates a bullish sentiment. The stock is now trading above all key moving averages, signalling strength and potential for further gains.
A strong green candle has formed on the daily charts, reinforcing the bullish outlook. This suggests that any dip around ₹610 levels presents a good buying opportunity for investors. While a small resistance can be observed near the ₹625 level, surpassing this resistance could propel the stock towards the ₹650 level and potentially higher.
Investors holding the stock from lower levels should consider maintaining their positions, employing a trailing stop loss strategy to lock in profits and mitigate risk. This approach allows investors to capitalize on the stock’s upward momentum while protecting against potential downturns.
According to the technical analysis, we advise buying MARICO at a CMP of ₹615.35. It can also be accumulated on dips near ₹610 for the target of ₹650. If the stock closes below ₹600, our analysis will be invalid.
3] ONGC: Buy at ₹288.20, target ₹315, stop loss ₹273.
ONGC share price is currently trading at ₹288.20 levels and has demonstrated a robust uptrend following a breakout above a falling trend line, supported by substantial trading volumes. This breakout signifies considerable strength in the stock, suggesting that any dip presents a buying opportunity for investors. The stock is currently trading above its short-term (20 Day), medium-term (50 Day), and long-term (200 Day) Exponential Moving Averages (EMAs), further indicating a bullish trend.
On the downside, ONGC has strong support around ₹273 levels, which is near its 20-day EMA. This level is expected to act as a solid foundation, providing stability and limiting potential downside risk. Conversely, on the upside, the stock faces minor resistance around ₹292 levels. A decisive move above this resistance could trigger significant upward momentum, pushing the stock towards the target of ₹315 levels.
Investors holding lower-level positions can consider maintaining their positions, capitalizing on the potential uptrend while utilizing the support level at ₹273 as a safety net. Overall, ONGC’s technical outlook is strong, surpassing the ₹292 resistance level, which could lead to notable gains.
Based on the aforementioned technical analysis, we advise buying ONGC at a CMP of ₹288.20. It can also be accumulated on dips near ₹279 for a target of ₹315. If the stock closes below ₹273, our analysis will be invalid.
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.
