Buy or sell stocks: Following strong global market sentiments, the Indian stock market snapped a five-day losing streak on Friday. The Nifty 50 index finished 428 points higher after climbing to a new peak of 24,861. The BSE Sensex skyrocketed 1,292 points and closed at 81,332, whereas the Bank Nifty index ended 407 points higher at 51,295. In the broad market, the small-cap index gained one percent, while the mid-cap index registered an impressive 2.12 percent growth on the last session of the previous week.
Sumeet Bagadia's stock recommendations today
Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market sentiment has improved as the Nifty 50 index has closed above the 24,850 hurdle. The Choice Broking expert said that the 50-stock index is facing a hurdle at 25,000, and the immediate support for the frontline index is now placed at 24,650 to 24,700. Bagadia predicted a 25,400 target for the key benchmark index once it breaches above 25,000 on a closing basis.
Regarding stocks to buy on Monday, Sumeet Bagadia recommended these three buy or sell stocks: Cipla, Wipro, and Coal India.
Stocks to buy on Monday
1] Cipla: Buy at ₹1575, target ₹1720, stop loss ₹1495.
Cipla share price is currently trading at ₹1575, and has reached a new all-time high. The daily chart shows a double bottom pattern, characterized by a bullish engulfing candle and high trading volumes, signalling strong bullish momentum. If the stock maintains its position above ₹1580, it will likely advance towards a target of ₹1720. The overall trend appears positive, and accumulating shares on any dips could provide a favourable entry point for potential gains.
The RSI is at 68.26 and trending upward, indicating increasing buying momentum. Additionally, CIPLA has bounced back from its short-term (20-day) EMA and medium-term (50-day) EMA, indicating a bullish outlook.
Based on this analysis, a recommendation would be to buy Cipla share in cash at ₹1575 with a stop loss (SL) at ₹1495 and a target (TGT) at ₹1720. This trade setup aligns with the bullish technical indicators observed in the stock.
2] Wipro: Buy at ₹524.80, target ₹580, stop loss ₹499.
Wipro share price is in a long-term uptrend, with the recent correction finding support near the 0.618 Fibonacci retracement level, suggesting a continuation of the overall uptrend. The stock is trading at ₹524.80, forming a bullish candle on the daily chart and closing above its short-term (20-day) EMA, underscoring strength in the prevailing trend. If Wipro share price maintains its position above these levels, it can move towards an upside target of ₹580.
The RSI is at 52.02 levels and shows a moderate recovery, suggesting that the stock is gaining strength. Moreover, WIPRO has bounced back from its medium-term (50-day) EMA and is trading above its short-term (20-day) EMA, reinforcing the bullish outlook.
The stock is in an uptrend, holding above key moving averages and Fibonacci support. The RSI also indicates strength. I recommend buying Wipro shares at ₹524.80 with a stop loss of ₹499 and a target of ₹580.
3] Coal India: Buy at ₹509.85, target ₹560, stop loss ₹483.
Coal India share price is currently trading at ₹509.85, showing signs of a potential breakout from its consolidation range. Robust trading volumes support the stock and demonstrate strength in its bullish movement. A breakout above ₹512 would confirm the uptrend and validate the expected target of ₹560. It is advisable to accumulate shares on dips for an optimal entry point.
The RSI is at 61.38 levels, with a positive crossover, indicating an increase in buying momentum. However, the Coal India share price has found support near 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 this analysis, a recommendation would be to buy Coal India share in cash at ₹509.85 with a stop loss (SL) at ₹483 and a target (TGT) at ₹560. This trade setup aligns with the bullish technical indicators observed in the stock.
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.
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First Published:
29 Jul 2024, 06:26 AM IST
