Buy or sell: Sumeet Bagadia recommends three stocks to buy next week. Should you buy?
Buy or sell stocks: After being pulled down by weak global market sentiments, Indian stock market ended lower for second straight session. NSE Nifty finished 13 points lower at 19,646 levels, BSE Sensex shed 106 points and closed at 66,160 mark while Bank Nifty index nosedived 211 points and ended at 45,468 levels. However, broad market indices outperformed key benchmark indices as small-ca index surged 0.49 per cent whereas mid-cap index went up 0.55 per cent.
Sumeet Bagadia, Executive Director at Choice Broking believes that market trend has turned cautious after sell off on two days in a row. Choice Broking expert said that Nifty today has immediate support placed at 19,550 whereas it is facing hurdle at 19,750 levels. bullish or bearish trend can be assumed on breakage of either side of the range.
On stocks to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday — NMDC, Adani Ports and Marico. 1] NMDC: Buy at ₹112.55, target ₹117, stop loss ₹110. NMDC share price has formed a strong support near ₹110.70 levels, which is also 20 Day EMA.
Currently, the stock is trading around ₹112.55 which are above its short term (20 Day) and medium term (50 Day) and long term (200 Day) Exponential moving averages. A small hurdle is visible on charts near to ₹114.65 levels, which is also a recent top. Once the stock overcomes the previously mentioned resistance, it will be able to move closer to the higher levels of ₹117.
The momentum indicator RSI is also trading comfortably at 64 levels indicating strength. The stock has bounced above the middle band of the Bollinger band and we can also witness an expansion of the band. Once stock approaches the upper band which is close to ₹114.65 we can witness sharp upmove
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