The domestic equity market has been underperforming its major global peers amid sharp selling by foreign portfolio investors (FPIs), the delay in a US interest rate cut, cautiousness ahead of the Lok Sabha election outcome, muted Q4 results and a substantial increase in the India VIX.
Over the past few months, the benchmark Nifty 50 index has been trading within a broad range of 21,750 to 22,800, and is currently approaching the lower end of this range. The Bank Nifty index is nearing its next immediate support level at 47,200, analysts said.
Stocks to buy on Monday
Sumeet Bagadia, Executive Director at Choice Broking has recommended three stocks to buy on Monday which he believes are technically placed to see a decent upmove. This list of stocks to buy include Eicher Motors, Zomato and Bharti Airtel.
Eicher Motors | Buy | Target Price: ₹4,930
Eicher Motors, presently trading at ₹4,657.85 levels, displays a favourable technical setup on the daily charts. The stock recently formed a bullish candle after establishing a supportive base near ₹4,485, a level in proximity to its 20-Day Exponential Moving Averages (EMA). This convergence underlines the significance of the support zone, indicating a strong foundation for potential upward movement. The Relative Strength Index (RSI) stands at a comfortable 72.90 levels, suggesting underlying strength in the stock.
A minor resistance at ₹4,708 levels could serve as a hurdle, but once surpassed, the stock has the potential to move towards the target of ₹4,930 and beyond as per the Fib Extension. This projection is supported by the bullish candle formation, the strategic positioning above key EMAs, and the RSI indicating ample strength for upward momentum.
Also Read: Best midcap IT stock: Tata Elxsi vs KPIT Technologies
Based on the above analysis, we recommend purchasing Eicher Motors at the CMP of ₹4,657.85; it can also be added on dips near ₹4,575 with a short to medium term target price of ₹4,930; if the price closes below ₹4,485; our analysis will be considered invalid.
Zomato | Buy | Target Price: ₹215
Zomato has demonstrated notable strength in its recent price action, marked by a significant breakout above the resistance level at ₹201. This breakout indicates a bullish sentiment and suggests potential for further upward movement. Moreover, the stock is currently trading at all-time high levels, highlighting its positive momentum and investor interest.
Supporting its bullish outlook, Zomato is trading above key moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) exponential moving averages (EMA). Additionally, the stock has found robust support around the ₹192 level, near its 20-day EMA, further reinforcing its bullish bias. The momentum indicator, Relative Strength Index (RSI), is also displaying strength, with a reading of 65.55, indicating bullish momentum in the stock.
Given these technical factors, Zomato appears well-positioned for further upside potential. Based on the above analysis, we recommend purchasing Zomato at the CMP of ₹201.30; it can also be added on dips near ₹196 with a medium term target price of ₹215. If the price closes below ₹192, our analysis will be considered invalid.
Also Read: Zomato share price: Emkay Global raises target driven by Blinkit; sees 17% more upside
Bharti Airtel | Buy | TP: ₹1,350 | Stop Loss: ₹1,270
Bharti Airtel has displayed resilience in its recent price action, rebounding from the support level around ₹1,270, which coincides with its 20-Day Exponential Moving Average (EMA). This bounce suggests renewed buying interest at lower levels and reinforces the stock’s bullish momentum.
Furthermore, Bharti Airtel is currently trading above all key moving averages, including the short-term (20-day), medium-term (50-day), and long-term (200-day) EMAs. This indicates a strong underlying trend and reinforces the positive sentiment surrounding the stock. The momentum indicator, Relative Strength Index (RSI), has also rebounded, currently standing at 58.47. This suggests an improvement in bullish momentum and supports the bullish outlook for the stock.
Looking ahead, Bharti Airtel has the potential to move towards the target of ₹1,350 levels, representing further upside potential. Investors may view any pullbacks towards ₹1,280 as potential buying opportunities, considering the stock’s strong technical setup and positive momentum. Based on the above analysis we recommend buying Bharti Airtel at CMP of ₹1301.15, it can also be added on dips at ₹1,280 with a stop loss of ₹1,270 for the target price of ₹1,350 and above.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 11 May 2024, 12:37 PM IST
