Buy or sell stocks: After a reasonable upside bounce from lows in the previous two sessions, the Indian stock market entered a consolidation phase on Saturday’s special trading session. The Nifty 50 index closed 49 points lower at 21,571, while the BSE Sensex fell 77 points to close at 71,423 points. However, the Bank Nifty index increased by 316 points and closed at 46,058.
This week’s stock market Strategy
The 50-stock index is confronting a barrier around the 21,750 zone, according to Choice Broking Executive Director Sumeet Bagadia, who thinks the Nifty 50 index has seen a respectable retreat from its recent lows around the 21,300 mark. But according to the Choice Broking expert, once the Nifty 50 index clearly breaks above 21,800, the Indian stock market might turn bullish.
Stocks to buy tomorrow
- Zomato: Buy at ₹135, target ₹143, stop loss ₹130.
On the daily chart, Zomato’s share price—which is presently trading at ₹135.05—formed a rounding bottom pattern breakout. Strong bullish momentum is currently being seen in the price, and this trend is anticipated to continue towards the ₹143 level. Conversely, there is substantial support in the vicinity of ₹130.
Furthermore, the price of Zomato shares is above important Exponential Moving Averages (EMAs), such as the 20-day, 50-day, and 200-day EMAs. This suggests that there may be more upward price movement in the future and indicates strong bullish momentum. With the current Relative Strength Index (RSI) of 58.51, the market is trending higher and there is more buying momentum. When taken as a whole, these technical indicators point to ZOMATO possibly hitting a target price of ₹143 in the near future.
With careful risk management in place, the Zomato share price, when combined with the technical analysis and the state of the market, offers a good opportunity for investors targeting a price target of ₹143. Setting a stop-loss (SL) at ₹130 will help you control risk and protect your investment in case the market takes a sudden turn for the worse. Purchasing at ₹132 would be a wise course of action if you were to buy on dips.
- Ambuja Cements: Buy at ₹537, target ₹570, stop loss ₹519.
The shares of Ambuja Cement are presently trading at around ₹537.10. The company maintains positions above important moving averages, namely the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) Exponential Moving Averages (EMAs). The company’s technical posture is strong. Significantly, the stock has formed a strong support zone around ₹519 levels, which is in line with its 20-day EMA. This support level has been reinforced by a strong close above it.
The rising trend of the stock indicates its fundamental strength, and the recent fluctuations in price suggest that a chart breakout may be imminent. A favorable environment for additional upward movement is suggested by the stock’s ability to close above the indicated support level, demonstrating its resilience. Any declines in the stock, especially around the 530 levels, are recommended to investors as opportunities to purchase. Setting a target of ₹570 levels and higher seems reasonable as the stock gets ready for any positive momentum. Trailing stop-loss procedures are advised for investors who entered positions at lower prices in order to safeguard gains and take full advantage of this continuous upward trend.
On dips, we recommend purchasing AMBUJACEM based on the technical analysis mentioned earlier. Stock should be added on dips up to ₹530 levels in order for traders buying at the CMP of ₹537.10 levels to reach ₹570. Our analysis will not hold up if the stock closes below ₹519.
- Bharti Airtel: Buy at ₹1125, target ₹1200, stop loss ₹1050.
As of right now, the share price of Bharti Airtel is ₹1125. It reached an all-time high on January 19, 2024, with a noteworthy 4% increase. The daily chart exhibits a steady pattern of higher highs and higher lows, coupled with a strong trading volume that reinforces this upward momentum. The stock has been moving higher as indicated by these patterns.
A notable increase in buying momentum is indicated by the Relative Strength Index (RSI), which is currently trending upward at 76.58. Positional traders may want to preserve their positions and use a trailing stop-loss, according to both RSI and Stochastic RSI in the overbought area.
Overall, BHARTIARTL is trending bullishly, and the positive outlook is supported by the convergence of multiple technical indicators. These signals suggest that the stock might reach ₹1200 as a target price in the near future. Buying on dips is a good idea, especially around ₹1100, so you can take advantage of any stock price retracements. It is advised to use a stop-loss (SL) at ₹1050 in order to manage risk sensibly. This is a critical preventive measure to protect investments in case of an unanticipated market reversal.
Who is Summet Bagadia?
He is an MBA in Finance by qualification and has an experience of a decade (15+ years) in Broking Industry. Sumeet is sought by print and wire services on a regular basis for his views and comments on Equities, Commodities as well as Currency markets.
He started his career with one of the leading broking firms in India, Sharekhan. Since then he is involved in markets and played a key role in setting up the desk at few brokerage houses. With the quality experience and sound knowledge, Sumeet has a good grip on markets.
Bottom Line
The Indian stock market is currently growing, with the Nifty 50 index facing resistance around 21,750. However, if the index rises above 21,800, the market outlook may shift bullish. Consider Zomato (target: ₹143), Ambuja Cements (target: ₹570), and Bharti Airtel (target: ₹1200) as stocks with strong momentum. Investors should exercise caution, set stop-loss levels, and consider buying on dips to find favorable entry points.
