Buy or sell: Sumeet Bagadia of Choice Broking recommends three stocks to buy on Monday — May 22
Buy or sell stocks: As global shares hit one month high, Indian stock market finished higher on Friday, snapping it losing streak for three straight sessions.
NSE Nifty gained 73 points and closed at 18,203 levels, BSE Sensex shot up 297 points and closed at 61,729 mark whereas Bank Nifty index ascended 217 points and finished at 43,969 levels.
In broad market, both small-cap and mid-cap index ended lower on Friday.
After remaining net buyers for fourteen straight sessions, FIIs finally turned net sellers on the weekend session.
Stock market strategy
Sumeet Bagadia, Executive Director at Choice Broking believes that Nifty today has strong support placed at 18,000 to 17,900 levels and till the 50-stock index is sustaining above this level, every dip should be seen as buying opportunity.
Choice Broking expert maintained that all three benchmark indices are in uptrend signaling more rise in upcoming sessions.
On stocks to buy on Monday, Sumeet Bagadia recommended the following three stocks to buy on Monday as it may give higher return next week.
Here we list out full details in regard to those day trading stocks or intraday stocks:
1] Mahindra & Mahindra (M&M): M&M share price is currently trading near ₹1260.
M&M share has formed a hammer pattern on daily chart, which indicates the reversal of bearish trend in stock.
The Strength is shown by the RSI indicator’s current trading range of 58 levels.
The stock is currently trading above all of the key moving averages.
The Bollinger band continues to expand on the daily chart, with the price trading above the band’s centre line, indicating the stock’s strength.
A small resistance is placed near ₹1285 levels; if the stock surpasses this level, it may move towards ₹1325 levels and higher.
With a medium-term target price of ₹1325, we advise purchasing M&M at the CMP of ₹1260. It can also be accumulated close to ₹1240 levels.
If the price closes below ₹1220, our analysis will be regarded as being invalid.
2] Kotak Mahindra Bank: Share price of this bank stock is consolidating and building a firm base in the ₹1910 to ₹1920 zone on the weekly chart.
The short-term support is further confirmed by the stock’s current price, which is above 21 Simple Moving Averages. On the hourly chart, it is also moving in a higher high-higher low pattern.
The daily period RSI plot is still at a level of 60. On the daily period, the Bollinger Band has begun to widen.
Therefore, one can start a long position at CMP 1941 based on the technical framework described above. To be on the safe side, it would be better to enter the ₹1920 to ₹1925 level range.
Closing and sustaining above ₹1960 will lead prices in the following days towards ₹2040 to ₹2050 levels. SL may remain as ₹1895.
3] Tata Consultancy Services or TCS: TCS share price is currently trading at ₹3222.
After experiencing a month-long rally from its lows of ₹3071.50 to the highs of ₹3309.70, TCS share has recently retraced and settled at ₹3222.
Chart suggests that TCS has established a strong support level in the range of ₹3180 to ₹3200. This indicates that the stock has found considerable buying interest around these levels, providing a potential foundation for further upward movement.
The Relative Strength Index (RSI) for TCS is currently at 49, indicating that there is still room for potential upside.
Considering the technical factors and market conditions, it appears to be a favourable opportunity to buy TCS shares at dips until it reaches the ₹3000 level.
The target for this trade would be ₹3340, with a recommended stop loss set at ₹3150.
Bylivemint
