Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — April 29
Buy or sell stocks: Despite gold prices snapping its five-week rally in the week gone by, the Indian stock market ended higher last week. Among the frontline indices, the Nifty 50 and the BSE Sensex logged ascended nearly 0.60 percent and 0.75 percent respectively in the week gone by whereas the Bank Nifty index ascended to the tune of nearly 0.95 percent. The broad market indices outperformed the frontline indices. The small-cap index scaled more than 2.75 percent northward in the week gone by while the mid-cap index shot up over 3.25 percent in this period.
Stock market strategy for next week
Sumeet Bagadia, Executive Director at Choice Broking believes that the Nifty 50 index is facing a hurdle at the ₹2,600 level and the 50-stock index succumbed to this hurdle on Friday last week. The Choice Broking expert said that the 50-stock index has strong support placed at 22,100 to 22,150 zone and one should maintain the buy-on-dips strategy on every big dip till the Nifty 50 index is above this support zone. On stocks to buy on Monday, Sumeet Bagadia recommended three buy or sell stocks — ITC, Cipla, and UltraTech Cement.
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Stocks to buy on Monday — April 29
1] ITC: Buy at ₹440, target ₹475, stop loss ₹422.
ITC share price demonstrates a robust technical setup, with formidable support levels between ₹422 to ₹428 providing a solid foundation for its current trading range. Despite trading at approximately ₹440 levels, the stock faces a minor resistance of around ₹448. A successful breach of this resistance could propel it towards the target of 475 and beyond, marking a potential uptrend continuation.
The bullish sentiment is reinforced by the stock’s consistent formation of higher highs and higher lows over the past six days, indicating sustained buying interest. Furthermore, the momentum indicator Relative Strength Index (RSI) is trending upwards at 63.35, suggesting increasing buying pressure and positive momentum.
Trading above all significant moving averages adds credence to the bullish outlook, supporting the likelihood of the stock reaching its target price of ₹475. Investors may find confidence in this setup, considering potential entry points above the resistance level while monitoring price action for confirmation. Overall, the technical analysis underscores a favourable risk-reward scenario for investors eyeing further upside potential in ITC.
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Based on the above technical analysis, we recommend purchasing ITC at the current market price of ₹440, it can also be added up to ₹430 for a target price of ₹475. If the stock closes below ₹422, our analysis will be invalid.
2] Cipla: Buy at ₹1409, target ₹1520, stop loss ₹1340.
Cipla share price is presently trading at ₹1409.15 levels. On the weekly chart, the stock has formed a strong bullish candle, signifying a resurgence of strength in its price action. A robust support level is situated at ₹1340 levels. These support factors enhance the stock’s stability and resilience. Furthermore, CIPLA share is trading above its important long-term (200 Day) EMA levels.
The Relative Strength Index (RSI), a momentum indicator, is hovering around 48.09 levels after bouncing from the lower levels. This RSI reading suggests that the stock possesses considerable strength without being excessively overbought. It signifies a healthy and sustainable uptrend.
A minor resistance level is noticeable in the vicinity of ₹1420…
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