Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday

Buy or sell stocks: Despite cautious sentiments in the global market, the Indian stock market ended higher for the second straight session on Friday. Nifty 50 index added 52 points and closed at the 21,710 level, and BSE Sensex regained the 72,000 mark by adding 178 points in the last session of the week gone by. However, the Bank Nifty index went off 36 points and finished at 48,159 level. The small-cap index rose more than the Nifty even as the advance-decline ratio remained high at 1.18:1.

Stock market strategy for next week

Sumeet Bagadia, Executive Director at Choice Broking believes that positive sentiments in the Indian stock market are still intact. The Choice Broking expert maintained that the Nifty 50 index has closed near to resistance zone of 21,750 to 21,800 level, which is a good sign. However, he maintained that the market is currently in the 21,500 to 21,800 range and a bullish or bearish trend can be assumed only on breakage of either side of the range.

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Stocks to buy next week

On stocks to buy next week, Sumeet Bagadia listed three shares for stock market investors — GAIL, TCS, and HUL. Here we list out full details regarding Sumeet Bagadia's stock picks for Monday:

1] GAIL: Buy at ₹164, target ₹185, stop loss ₹152.

GAIL share price is currently trading at an all-time high of ₹164, showing strength in price performance. The stock is holding the ₹158 level and consolidating at the resistance level, indicating price stability with good volume. The observed pattern suggests a short-term target price of ₹185. Buying on dips, especially in the ₹160 range, seems to be a favorable entry point, with ₹152 acting as a crucial support level for the stock.

Additionally, GAIL demonstrates a promising technical outlook, having closed above its short-term, mid-term, and long-term moving averages, including the 50-day, 100-day, and 200-day Exponential Moving Averages (EMA). This signifies the stock's strength across various timeframes. The Relative Strength Index (RSI) currently stands at 71, indicating strong momentum with potential for further price appreciation.

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To effectively manage risk, it is advisable to implement a stop-loss (SL) at ₹152 to protect your investment in case of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, GAIL appears to offer an attractive buying opportunity for those targeting a ₹185 price objective, provided prudent risk management measures are in place.

2] TCS: Buy at ₹3737, target ₹3900, stop loss ₹3650.

TCS share price is presently trading at ₹3737, indicating a reversal from the bottom with substantial volume, as evidenced by the formation of a morning star candlestick pattern on the daily chart. The identified pattern suggests a short-term target price of ₹3900. Buying on dips, particularly in the ₹3690 range, is considered a favorable entry point, with ₹3650 serving as a crucial support level for the stock.

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Furthermore, TCS exhibits a promising technical outlook, having closed above its short-term, mid-term, and long-term moving averages, including the 50-day, 100-day, and 200-day Exponential Moving Averages (EMA). This underscores the stock's strength across various timeframes. The Relative Strength Index (RSI) presently stands at 54, indicating strong momentum with the potential for further price appreciation.

To manage risk effectively, it is advisable to implement a stop-loss (SL) at ₹3650 to safeguard your investment in the event of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, TCS appears to present an appealing buying opportunity for those aiming for a ₹3900 price target, provided prudent risk management measures are in place.

3] HUL: Buy at ₹2620, target ₹2720, stop loss ₹2528.

HUL share price has demonstrated resilience as it rebounded convincingly from the support level of 2586, aligning closely with its 20-day Exponential Moving Average (EMA). At the current trading level of 2620, the stock showcases strength by maintaining positions above key moving averages, portraying a positive technical picture.

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The robust recovery is complemented by the Relative Strength Index (RSI) reading at 60 levels, indicating a balanced momentum in the stock. This RSI position, coupled with the stock's ability to trade above significant moving averages, points towards an optimistic scenario for HUL.

HUL share price faces a minor resistance at ₹2636 levels, surpassing this hurdle is likely to trigger a bullish trend, propelling HUL towards the target of ₹2720 and beyond. Investors can capitalize on potential buying opportunities, with a strategic entry on a breakout above the resistance level. The overall technical analysis underscores the positive trajectory for HUL, emphasizing a constructive outlook and setting the stage for potential upward movements in the coming sessions.

Based on the above analysis, we expect the HUL share price to move higher towards ₹2720 and hence we recommend buying HUL shares at CMP of ₹2620. It can also be added up to ₹2605 with a SL of ₹2586.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decision.