Buy or sell: Sumeet Bagadia recommends three stocks to buy next week

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Buy or sell stocks: After remaining net buyers for two straight sessions, FII turned net sellers again on Friday. FIIs sold out Indian shares worth ₹477 crore on Friday that turned the tide in bears' favour on last session of the week gone by. Nifty 50 index lost 33 points and ended at 19,730 levels, BSE Sensex went down 187 points and closed at 65,794 mark while Nifty Bank index corrected 577 points and finished at 43,583 levels.

Broad market indices ended minorly in the positive even as the advance decline ratio, though positive at 1.16:1, dipped over the previous day. Also read: IREDA IPO: GMP, price, lot size, other details. Check experts' recommendations Sumeet Bagadia, Executive Director at Choice Broking believes that Nifty 50 index is facing resistance at 19,800 to 19,850 zone.

Choice Broking expert went on to add that overall bias of Indian stock market is positive till Nifty is trading above 19,650 levels. On stocks to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday — Asian Paints, Dr Dr Reddy's Laboratories and Grasim Industries. 1] Asian Paints: Buy at ₹3169, target ₹3330, stop loss ₹3085.

Asian Paints share is currently trading at ₹3168.90 levels. Asian Paints share price has shown a sharp bounce from the support of ₹3085 levels which is also close to its 20 Day EMA levels. The stock has also formed a two bullish candle on weekly charts after forming doji candle at the support levels.

We can witness a small resistance of ₹3230, once stock closes above its resistance, the stock shall move towards the further resistance of ₹3310 levels. Also read: Tata Tech IPO: GMP jumps as issue opens next week. Date, price, other details The RSI indicator is also comfortably trading at 62 levels