Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — March 18

Buy or sell stocks: After a sharp recovery on Thursday, the Indian stock market once again slipped into the weak zone. However, bottom fishing was witnessed in the mid-cap and small-cap stocks as the indices registered a sharp recovery ahead of the market close. The Nifty 50 index ended 123 points lower but above 22,000 levels. The BSE Sensex ended 453 points down at the 72,643 mark whereas the Bank Nifty index dipped 195 points south at the 46,594 mark. In the broad market, the small-cap index ended higher by 0.25 percent while the mid-cap index finished 0.51 percent down.

Stock market strategy for next week

Sumeet Bagadia, Executive Director at Choice Broking believes that despite the Indian stock market ending lower on Friday, a sharp recovery witnessed across indices has set the momentum for next week. The Choice Broking expert said that the small-cap index closing in green after losing over 1.50 percent at one point of time during Friday deals may set the recovery momentum on Monday. Bagadia said that the Nifty 50 index has remained in the 21,900 to 22,300 range despite high volatility in the Indian market. On stocks to buy on Monday, Sumeet Bagadia recommended three buy or sell stocks — Bajaj Finance, Bharti Airtel, and HDFC Life.

Stocks to buy next week

1] Bajaj Finance: Buy at ₹6514, target ₹7000, stop loss ₹6275.

Bajaj Finance share is currently trading at ₹6514 and has recently consolidated at the bottom with good volume, indicating a potential reversal and a strong bullish trend. A breakout above ₹6550 could propel Bajaj Finance share price towards the ₹7000 level, with immediate resistance at ₹6800. On the flip side, ₹6300 serves as a crucial support level. Furthermore, after a prolonged correction, the stock has reversed from the support level. The Relative Strength Index (RSI) is currently at 44, on an upward trajectory, suggesting growing buying momentum. Collectively, these technical indicators imply that Bajaj Finance share has the potential to reach the ₹7000 target in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at ₹6275 to protect the investment in case of an unexpected market reversal. A prudent strategy would involve considering buying opportunities on dips at levels around ₹6400. In summary, based on technical analysis and prevailing market conditions, Bajaj Finance share appears to present a promising buying opportunity for those targeting a ₹7000 price objective. It is crucial to implement prudent risk management strategies to navigate potential market fluctuations.

2] Bharti Airtel: Buy at ₹1220, target ₹1300, stop loss ₹1164.

Bharti Airtel share price is presently trading at an all-time high of ₹1220 and has recently broken out of a rounding bottom pattern with substantial volume, suggesting a potential reversal and a robust bullish trend. A breakout above ₹1220 could drive the stock towards the ₹1310 mark, with immediate resistance at ₹1300. Conversely, ₹1170 stands as a crucial support level. Moreover, following an extended correction, the stock has rebounded from the support level. The Relative Strength Index (RSI) is currently at 67.5, trending upwards, indicating increasing buying momentum. Taken together, these technical indicators suggest that Bharti Airtel share price has the potential to achieve the ₹1300 target shortly.

To manage risk effectively, it is prudent to set a stop-loss (SL) at ₹1164 to safeguard the investment against unexpected market reversals. A sensible approach would involve considering buying opportunities on pullbacks around ₹1190. In summary, based on technical analysis and prevailing market conditions, Bharti Airtel share price appears to offer a promising buying opportunity for those aiming for a ₹1310 price objective. It is essential to implement sound risk management strategies to navigate potential market fluctuations.

3] HDFC Life: Buy at ₹632.35, target ₹675, stop loss ₹605.

HDFC Life share price is currently trading at ₹632.35 levels, the stock has shown resilience by rebounding from robust support at ₹605, aligned closely with its 20-day and 50-day Exponential Moving Average (EMA) levels. Significantly, it trades above all key moving averages, indicating underlying strength. The Relative Strength Index (RSI), currently at 65, underscores the stock’s bullish momentum. A minor resistance at ₹655 levels poses a modest hurdle. A breakthrough above this resistance could fuel further upward movement, with a potential target of ₹675 and beyond.

Investors may find confidence in the stock’s ability to sustain its bullish trajectory, supported by technical indicators. However, it’s essential to remain vigilant for any shifts in market dynamics or stock-specific developments that may impact the stock’s performance. Prudent risk management, including setting appropriate stop-loss levels, is advisable to navigate potential market fluctuations and capitalize on the stock’s upward potential effectively.

Based on the above technical analysis we HDFC Life share price can be purchased at the CMP of ₹632.35, it can be also added up to ₹615 with a stop loss of ₹605 for the target of ₹675.

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.