Buy or sell stocks: The Indian stock market indices witnessed healthy gains on Friday, with the benchmark Nifty 50 hitting its fresh record high intraday drove by all over buying amid upbeat domestic Q2 Gross domestic product data that surpassed expectations.
On December 1, the Sensex finished 492.75 points, or 0.74%, higher at 67,481.19, while the Nifty 50 rose 134.75 points, or 0.67%, to settle at 20,267.90. The Nifty Midcap 100 index closed 1.10% higher at 43,382.40 and the Nifty Smallcap 100 index closed 0.48% higher at 14,239.30.
Stock market strategy for the following week
Analysts believe the stock market one week from now will be driven by economic data releases from the US, India, and China, while the focus will be on the Reserve Bank of India (RBI) financial policy meeting. The RBI is widely expected to maintain the status quo on interest rates. In addition, the trajectory of foreign capital flows will also be critical.
On stocks to buy on Monday, Sumeet Bagadia, Executive Director at Choice Broking prescribed three shares to buy one week from now and those three stocks are Asian Paints, State Bank of India (SBI) and Tata Steel.
Stocks to buy on Monday
As mentioned above, Sumeet Bagadia has prescribed three stocks to buy on Monday, here we list out all relevant info as to Sumeet Bagadia’s stock recommendations:
1] Asian Paints | Buy at ₹3,173.40 | Target: ₹3,335 | Stop Loss: ₹3,080
Asian Paints has exhibited a new correction from the resistance at ₹3,230. Be that as it may, the stock has demonstrated resilience by experiencing a sharp bob from the initial support around ₹3,110, which also aligns with the 20-Day Exponential Moving Normal (EMA). The formation of a bullish candle on daily charts further reinforces positive force.
The stock’s potential to move upwards is contingent on it surpassing the resistance at ₹3,230. If this level is penetrated, it might make ready for a development towards the further resistance at ₹3,335. This potential vertical development provides an opportunity for traders and investors to consider.
The Relative Strength Index (RSI) indicator is easily trading at 60 levels, indicating strength in the stock and supporting the potential for up development.
Asian Paints is presently trading over immeasurably important moving averages, affirming the general strength of its pattern.
We suggest buying Asian Paints at CMP of ₹3,173.40; it can be added on dips up to ₹3,110, with a medium-term target price of ₹3,335. Our analysis will be considered invalid if the price closes underneath ₹3,080 levels.
2] SBI | Buy at ₹571.75 | Target: ₹618 | Stop Loss: ₹550
State Bank of India (SBI) is presently trading at ₹571.75. On the daily outline, the price has as of late finished up over the 200-day Exponential Moving Normal (EMA), indicating a sustained bullish energy. Moreover, the stock has consistently tracked down support around the ₹554 level on four occasions, solidifying it as a reliable support zone. The projected trading range for the stock is supposed to be somewhere in the range of ₹554 and ₹588, with the likelihood of sideways development within this reach.
The Relative Strength Index (RSI) for SBI stands at 51.17, suggesting potential upside. Besides, the Stochastic RSI exhibits a positive crossover, further reinforcing the bullish sentiment. Outstandingly, the stock is trading over all significant moving averages, underscoring its general strength.
Considering these technical indicators and prevailing economic situations, it appears to be an advantageous second to consider buying SBI at the ongoing business sector price of ₹571.75. A reasonable target for this exchange could be set at ₹618, with a prescribed stop-loss at ₹550 to oversee potential risks.
3] Tata Steel | Buy at ₹130 | Target: ₹138 | Stop Loss: ₹125
Tata Steel share price is right now trading at ₹130.00, which serves as a breakout point. If the price sustains over this level, it might likely experience further upside energy, targeting levels around ₹135 and ₹138 in the short term. It’s significant that ₹125 is an important support level for the stock which is also close to its 20 Day EMA levels.
This breakout is a positive signal for investors, suggesting that the stock has space for additional vertical development. Besides, the stock’s ability to exchange above key moving averages highlights its ongoing strength and positive energy.
Notwithstanding, it’s essential to consider the Relative Strength Index (RSI), a widely followed energy indicator, which is at present at 70.
We suggest buying Tata Steel at CMP of ₹130; it can be added on dips up to ₹126.5 with a medium-term target price of ₹138. Our analysis will be considered invalid if the price closes under 125 levels.
