Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — 1st April

Buy or sell stocks: After moving into a narrow range movement in the last few sessions, the Indian stock market witnessed a decisive intraday upside breakout on Thursday. The Nifty 50 index gained 203 points and closed at the 22,326 level, the BSE Sensex surged 655 points and closed at the 73,651 mark whereas the Bank Nifty index shot up 338 points and ended at the 47,124 level. In the broad market, the small-cap index gained 0.33 percent while the mid-cap index scaled 0.62 percent north on the last trade session of FY24.

Stock market strategy for next week

Sumeet Bagadia, Executive Director at Choice Broking believes that fresh buying was witnessed in frontline stocks of the key benchmark indices. The Choice Broking expert maintained that the Nifty 50 index has gained strength and the frontline index is looking set to climb a new peak in the near term. Bagadia said that Nifty today looks set to enter the 22,700 to 23,200 zone.

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Stocks to buy on Monday

On stocks to buy next week, Sumeet Bagadia recommended three buy or sell stocks — Bajaj Finserv, Power Grid Corporation, and Divi’s Lab. Here we list out full details regarding stock recommendations by Sumeet Bagadia for next week:

1] Bajaj Finserv: Buy at ₹1644, target ₹1740, stop loss ₹1580.

Bajaj Finserv share is currently trading at ₹1643.85 levels. Bajaj Finserv share price weekly chart analysis offers a favorable view for the coming days ahead, indicating a sustainable upside bounce over the last two weeks. The stock price was moving in a larger consolidation pattern in the last couple of months. And is currently attempting to break above the range of ₹1640 to ₹1666 levels.

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A sustainable move above the hurdle could be considered as a decisive upside breakout and that could have a sharp positive impact on the stock price ahead towards ₹1740 levels.

Furthermore, Bajaj Finserv share is currently trading above its crucial 20-day, 50-day, and 200-day Exponential Moving Average (EMA) levels, reinforcing the bullish trend. The increase in trading volume further supports a bullish scenario. Investors, especially those who entered at lower levels, could consider a prudent approach trailing stop-loss orders near 1580 levels which is also close to its 200-day EMA levels can safeguard profits and manage risks effectively.

For fresh investments, one can purchase the stock at CMP and it can also be added on dips near ₹1620. Implementing a strict stop-loss at ₹1580 levels offers a risk management mechanism, ensuring protection against adverse market movements.

Based on the above analysis the stock can be purchased at CMP of ₹1643.85 and it can also be added on dips near ₹1620 with a strict stop loss at ₹1580 for the target of ₹1740 levels and higher.

2] Power Grid Corporation: Buy at ₹277, target ₹298, stop loss ₹258.

Power Grid share, currently trading at ₹276.90 levels, has demonstrated robust technical performance. The stock exhibited a notable rebound from the support zone around 258 levels, consolidating within the range of ₹268 to ₹258 levels. Importantly, the Power Grid share price is trading above its short-term (20-day), medium-term (50-day), and long-term (200-day) Exponential Moving Average (EMA) levels, underscoring its strength.

Investors should view any potential dips in the stock, particularly around the ₹267 level, as favorable buying opportunities. Furthermore, there is a minor resistance observed near ₹283 levels. A decisive breakthrough of this resistance level could trigger a significant upward movement towards the target of ₹298 and beyond.

Additionally, the momentum indicator has exhibited positive momentum, with the Relative Strength Index (RSI) currently at 52.45 levels, further affirming the stock’s strength.

Based on the above analysis we recommend buying Power Grid shares at CMP of ₹276.90, It can also be added on dips near to ₹267 levels with a stop loss of ₹258 for the target of ₹298 and above.

3] Divi’s Laboratories: Buy at ₹3437, target ₹3650, stop loss ₹3330.

Divis Lab share has demonstrated a notable resurgence, rebounding convincingly from the support levels around ₹3330 to its current trading level of ₹3436.75. This rebound was characterized by substantial trading volumes, indicative of underlying strength in the stock. Moreover, the momentum indicator, Relative Strength Index (RSI), has exhibited a reversal from its lower level of 32, now trading at 41.76, further corroborating the bullish sentiment.

Additionally, the weekly charts reveal the formation of a dragonfly doji candlestick pattern, signaling a potential reversal in the prevailing trend from the support levels. However, on the upside, minor resistance is observed around 3540 levels, in proximity to the 50-day Exponential Moving Average (EMA). Once the stock decisively surpasses this resistance level, it could pave the way for a robust upward movement towards the target price of ₹3650 and beyond.

Based on the above analysis we recommend purchasing Divis Lab shares at CMP of ₹3436.75 with a strict stop loss of ₹3330 for the target of ₹3650 and above.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.