Sumeet Bagadia, Executive Director at Choice Broking, has identified three stocks that investors should consider buying on October 21, 2024. His recommendations come in the wake of a recent rally in the Indian stock market, which saw the Nifty 50 index closing at 24,854, marking a gain of 104 points. Despite this positive movement, Bagadia cautions that the market trend remains negative until the Nifty decisively breaches the psychological level of 25,000.
Market Insights
The Indian stock market experienced buying interest after three consecutive sessions of losses. The BSE Sensex also showed resilience, ending 218 points higher at 81,224. The Bank Nifty index gained significantly, closing at 52,094 after an increase of 805 points. However, Bagadia notes that while Friday’s rally may provide temporary relief, investors should remain cautious as the overall market sentiment is still bearish.
Recommended Stocks
Bagadia recommends the following stocks for purchase:
HDFC Life: Currently priced at ₹742.45, HDFC Life is recommended with a target of ₹790 and a stop loss at ₹715. The stock has demonstrated positive momentum and is positioned above key moving averages, indicating its technical strength. A significant breakout above the resistance level of ₹760 could propel the stock towards its target price.
Conclusion
Investors are encouraged to adopt a stock-specific approach as they navigate the current market landscape, particularly during the ongoing Q2 results season. While recent rallies provide some optimism, caution remains essential as the market may retest recent lows.
Disclaimer: The views and recommendations provided in this article are based on individual analysts’ opinions and should not be construed as investment advice. It is advisable for readers to consult with qualified financial advisors before making any investment decisions, as market conditions can change rapidly.
