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

Buy or sell stocks for Monday: On account of heavy selling after HDFC twins rebalancing by MSCI, Indian stock market ended lower on Friday as all three key benchmark indices of the Dalal Street finished in red zone on the weekend session. NSE Nifty lost 186 points and closed at 18,069 levels, BSE Sensex dipped 695 points and closed at 61,054 mark whereas Bank Nifty index nosedived over 1000 points and finished at 42,661 levels. In broad markets, mid-cap index lost 0.50 per cent while small-cap index went off 0.39 per cent on last session of the week gone by.

Buy or sell stock

Sumeet Bagadia, Executive Director at Choice Broking believes that results season are underway and hence one should stick to stock specific approach while trading. He recommended following three stocks to buy when Indian stock market opens on Monday:

1] UltraTech Cement: After decent consolidation, UltraTech Cement share price has formed double bottom pattern in daily chart, indicates short term bounce from recent lows. Stock is trading higher than 20 and 50 daily moving averages. The price is trading above the middle Bollinger band also positive crossover is indicated in RSI and MACD suggests continuity in the bullish trend in the near term. Sustaining high volume, points out buying interest among the short term traders.

Additionally, cement sector is also gaining momentum. Hence, based on the above technical structure one can initiate a long position at CMP ₹7628. However, on the safer side nearby ₹7560-7580 levels would be a better range to enter. Closing and sustaining above ₹7700 will lead towards ₹7940-8000 levels in coming days. SL can be kept as ₹7420.

2] Adani Ports: Since six weeks, the Adani Ports share price has been forming higher highs and higher lows on weekly charts. The stock is currently trading at ₹683. Since the last 15 days, the stock has been consolidating in a range of ₹656-693 levels, with today's close at the highest levels above ₹680. The stock has surpassed the 20 and 50 Day EMA levels and is trading comfortably above those levels, signalling strength. We can see some minor resistance about ₹695 levels. Once the stock breaks through the resistance, it may move higher towards the ₹725 level, which is also the 200 Day EMA.

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. The Bollinger band will widen once the stock reclaims the 695 levels, further assisting the stock's upward movement. With a medium-term target price of 725, we advise purchasing Adani Pots shares at the CMP of ₹683. It can also be accumulated close to ₹670 levels. If the price closes below ₹655, our analysis will be regarded as being invalid.

3] Maruti Suzuki: Maruti Suzuki India Limited is currently trading at ₹8948, and based on technical analysis, it appears to be in an uptrend. One positive indication is that Maruti is trading above its key moving averages of 20, 50, 100, and 200, indicating that the stock has been consistently trending upwards over the different time periods. The Relative Strength Index (RSI) is currently at 69, indicating that buying pressure is stronger than selling pressure. However, traders should keep an eye on the RSI levels, as an RSI reading above 70 can be a sign that the stock is overbought and may be due for a correction. Bollinger Bands are showing expansion, which indicates that Maruti is experiencing high volatility, with wider price swings.

This can be an advantage for traders who use volatility to identify potential trading opportunities. There is mild resistance at ₹8900, and if these levels are respected, Maruti's stock price could potentially reach ₹9365-9500. However, traders should be aware that a close below ₹8775 could negate this bullish view.

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 taking any investment decisions.