Buy or Sell Stocks: The Indian stock market has once again displayed a trend of trading within a narrow range, continuing this pattern into the end of last week. On Friday, the Nifty 50 index closed 34 points lower, finishing at the 24,964 mark, which is just below the psychologically significant level of 25,000. Meanwhile, the BSE Sensex dropped by 230 points to settle at 81,381, and the Nifty Bank index fell by 358 points to end at 51,172. In contrast, the small-cap index showed resilience, rising by 0.44%, while the mid-cap index mirrored this performance with a 0.44% increase during Friday’s transactions.
Stocks to Consider Buying on Monday
Sumeet Bagadia, the Executive Director at Choice Broking, has noted a cautious bias prevailing in the Indian stock market. This sentiment stems from the current trading range of the Nifty 50 stocks, which is confined between 24,900 and 25,300. Bagadia indicates that a decisive trend—either bullish or bearish—could become apparent with a breakout on either side of this range. Such a breakout could lead to a potential 200-point movement in the index.
For investors looking to act on Monday, Bagadia recommends three stocks: Divi’s Laboratories, HCL Technologies, and Hindalco Industries, each with specified entry points, targets, and stop-loss levels.
Sumeet Bagadia’s Stock Recommendations
1] Divi’s Laboratories: Buy at ₹6142.25, target ₹6555, stop loss ₹5925.
Analysis of Divi’s Laboratories’ daily share price chart indicates a favorable outlook in the upcoming days. The stock has recently broken out from a wider consolidation range of ₹5300 to ₹5450, signaling a sustainable upward movement. This breakout may pave the way for the stock to reach its next target of ₹6555, presenting a compelling opportunity for investors.
Additionally, Divi’s Laboratories is currently trading above its key 20-day, 50-day, and 100-day Exponential Moving Averages (EMA), further solidifying its bullish trend. The recent increase in trading volume and its position above the Volume Weighted Average Price (VWAP) of ₹6085 bolster the positive sentiment surrounding the stock. Investors who purchased shares at lower levels might consider taking partial profits while simultaneously employing trailing stop-loss orders at around ₹5925 to manage their risks effectively.
For those contemplating fresh investments in Divi’s Labs, a strategic approach would be to look for potential dips and establish entry points around ₹6060, accompanied by a strict stop-loss at ₹5925 to safeguard against market fluctuations.
HCL Technologies has exhibited impressive strength with a significant positive momentum reflected in recent high-volume trading sessions. Current trading stands at ₹1839.65, significantly supported by the stock’s recent consolidation around the ₹1775 to ₹1815 range, which positions it for a possible upward trajectory.
The technical foundation of HCL Technologies remains robust, as the share price has consistently stayed above the 20-day, 50-day, and 200-day EMAs, indicating a healthy trend. The Relative Strength Index (RSI), currently at 65, suggests continued upward momentum is possible.
As HCL Technologies approaches its target of ₹1950, its ability to maintain support during pullbacks is a positive sign. For investors, deploying trailing stop-loss orders near ₹1777 serves as a prudent risk management strategy, especially for those who acquired shares earlier.
Hindalco is currently trading at ₹747.35, reflecting a significant uptrend from support levels near ₹715. The stock exhibits strong positive momentum and is positioned above its 20-day, 50-day, and 200-day EMA, reinforcing its technical strength.
Recently, Hindalco broke through the resistance level at ₹750, a move supported by high trading volume. Sustaining above this level could propel the stock toward its next target of ₹800. Investors should implement trailing stop-loss strategies near ₹720 to secure potential profits.
The current momentum, indicated by an RSI of 65, suggests favorable bullish sentiment in Hindalco. For new investors, acquiring shares at the current market price with a target of ₹800 and a protective stop-loss at ₹720 is an advisable course of action.
Disclaimer: The recommendations and views expressed herein are those of individual analysts or brokerage firms and do not represent the views of the outlet. It is advisable for investors to seek counsel from certified financial experts before making any investment decisions, as conditions in the market can fluctuate rapidly and individual situations may differ. It is also worth noting that Hindalco Industries is affiliated with HT Media Ltd, and the selection of stocks ultimately rests in the hands of market experts.
