Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday - May 29
2 min read 27 May 2023, 09:22 AM ISTBuy or sell stocks: Sumeet Bagadia has recommended three day trading stocks for Monday — IDFC First Bank, Hindustan Copper and Pidilite Industries.
PremiumThe performance of the domestic equity indices was influenced by external factors during the week, including as worries about the ongoing US debt ceiling negotiations, the German recession, and hawkish remarks from US Fed officials.
According to analysts, domestic investors were cautious in their trading throughout the week, but the positive growth outlook for the Indian economy led to a smart comeback in the market towards the end of the week.
On Friday, 30 BSE shares the Sensex increased by 629 points to 62,501.69, and the NSE Nifty 50 gained 178 points to 18,499.35. The biggest gainers on Friday were in the metal, pharmaceutical, and IT sectors.
The NSEdata shows domestic institutional investors bought with ₹338.44 crore while foreign institutional investorsbought ₹589.10 crore.
Analysts claim that markets made an upbeat start for the June expiry on Friday by edging up and gaining close to 1%. The buying was seen in all sectors, with real estate, IT, and FMCG among the biggest gainers.
Sumeet Bagadia, Executive Director at Choice Broking recommends three stocks to buy on Monday - IDFC First Bank, Hindustan Copper, and Pidilite Industries.
IDFC First Bank
According to Sumeet Bagadia, the stock is currently trading 69.85 levels. The stock is making higher high’s higher low’s since last three days. The stock is trading above all important moving averages. On weekly chart the stock has formed an inverted head and shoulder pattern, which indicates the strong bullish trend.
"Any dip in the stock can be a buying opportunity. We can witness a strong volume on daily charts which indicates strength in the stock. We expect stock to move on 76 levels and above. Based on above analysis one can initiate long position at current market price of ₹69.85 for the target price of ₹76 with the stop loss of ₹66.
Hindustan Copper
As per Bagadia analysis, Hindustan Copper is trading at 106 and is expected to break out around 108. It has surpassed the 20-day, 50-day, and 100-day EMAs, indicating positive momentum. Resistance levels at 107.5, coinciding with the 200-day EMA, need to be overcome for further upward movement. Once these levels are breached, a potential rise to 116-120 is possible.
However, a consolidation phase may occur until the stock breaks 107. The Relative Strength Index (RSI) at 60 and the stock's support along an upward trend line suggest a favourable outlook. Monitoring the price action is crucial, with a break below 101 invalidating the positive view.
Pidilite Industries
Pidilite Industries has been steadily trending upwards, finding strong support at the 200-day moving average around 2500 levels. The upward movement is backed by high trading volumes and a positive crossover in the RSI indicating growing buying interest and positive momentum. The stock is now approaching a potential breakout of a falling trendline on the daily chart, further enhancing its bullish prospects. Additionally, the stochastic oscillator has displayed a positive crossover as well.
Based on technical parameters, one can initiate long position at current market price of ₹2,586 for the targets price of ₹2,720 with stop loss of ₹2,520.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
