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

livemint.com:

Buy or sell stocks: After rallying for seven straight sessions, Indian stock market witnessed profit booking on Friday in the week gone by. NSE Nifty closed 165 points lower at 19,331 levels while BSE Sensex corrected 505 points and ended at 65,280 mark. Bank Nifty slipped below 45,000 levels and ended at 44,925 levels.

Sumeet Bagadia, Executive Director at Choice Broking believes that Nifty is facing resistance at 19,500 and further upside in the 50-stock index can be expected only when it manages to breach this current hurdle. Choice Broking expert said that Nifty today has immediate support placed at 19,250 while Bank Nifty may witness some more sell off pressure as the index has lost crucial psychological 45,000 level. On stocks to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday — Bank of Baroda, Tata Motors and CIPLA.

Here we list out full details in regard to those Sumeet Bagadia's stock recommendations: 1] Bank of Baroda: Buy at ₹205 to ₹205, target ₹225 to ₹227, stop loss ₹202. Bank of Baroda share has given breakout of cup and pattern in daily chart indicates strength in charts. The stock is trading above 21 DMA as well.

We can see some minor resistance near ₹212 to ₹213 levels. Once the stock breaks through the resistance, it may move higher towards the ₹225 to ₹227 level. The RSI indicator is currently trading at a comfortable level of 60, signifying strength.

On daily charts, we can see a Bollinger band squeeze with the stock trading above the middle line, indicating strength. However, on the safer side nearby ₹205 to ₹206 levels would be a better range to enter. SL can be kept as ₹202.