Contents
A Sturdy Closure for Indian Stocks
In a surprisingly volatile session, the Indian stock market wrapped up on a positive note this past Friday. Notably, the Nifty 50 index surged with finesse, breaking out from its consolidation phase and securing a commendable 219-point ascent, closing at 24,768. This captivating climb wasn’t limited to the Nifty alone; the BSE Sensex leapt an impressive 860 points, closing its session firmly at 82,150.
The Nifty Bank index mirrored this optimism with a 414-point gain, closing at 53,630. Sector gains were led by Nifty FMCG, Consumer Durables, and Private Bank indices, though Nifty Metal, Media, and Reality dragged their feet this time around. Interestingly, despite this upward trend, NSE cash market volumes noticeably declined by 6% compared to the previous day. The Nifty Mid-cap and Small-cap indices didn’t share the same fortune, slipping by 0.05% and 0.30%, respectively, compared to the Nifty’s broader rise of 0.89%. Meanwhile, the advance-decline ratio took a downturn as declining shares surpassed advancing ones for the second successive day on BSE, with the ratio standing at 0.85.
Sumeet Bagadia’s Insights Post-Market Rally
A Fresh Breakout for Nifty 50
Sumeet Bagadia from Choice Broking brings some optimism to the table, observing that the upward closure above 24,700 marks fresh technical territory for the Nifty 50. He anticipates the index could feasibly touch 25,200 in the not-so-distant future. Bagadia’s analysis also notes that the Nifty has sturdy support pegged at 24,300.
Stock Recommendations for the Week
Bagadia’s savvy insights aren’t just limited to the indices. For those inclined towards individual stocks, he posits three promising picks for the forthcoming week: Bharti Airtel, DLF, and Kotak Mahindra Bank. His specific recommendations are detailed as follows:
1. Bharti Airtel
- Entry Price: ₹1681.75
- Target Price: ₹1780
- Stop Loss: ₹1620
Bharti Airtel commands attention as it trades upwards from its supportive base levels revolving around ₹1600. Its bullish stride is bolstered by its favourable position above the 20-day, 50-day, and 200-day EMAs. Traders would do well to note the breakthrough resistance at ₹1700, reinforced by substantial trading volumes.
Remarkably, this touches its all-time high, indicating ripe ground for further rallying to the ₹1780 target. A prudent stop-loss at ₹1620 is advisable. Currently, the Relative Strength Index (RSI) sits comfortably at 63.85, reflecting positive market sentiments.
2. DLF
- Entry Price: ₹870.85
- Target Price: ₹930
- Stop Loss: ₹840
Scope abounds in DLF as well, trading at ₹870.85 thanks to a resurgence in buyer interest. Bouyed by robust volumes, its technical outlook is nothing short of resilient, marching past its EMA barricades. This past Friday, DLF inched up by 0.43%, hinting at market consolidation prospects courtesy of its higher high and low trend.
Circumspect investors may find its recent resistance near ₹880 as indicative of the stock’s bullish springboard, nudging closer to the ₹930 target while securing positions with a stop loss at ₹840.
3. Kotak Mahindra Bank
- Entry Price: ₹1805.65
- Target Price: ₹1900
- Stop Loss: ₹1740
Kotak Mahindra Bank appears robust, gaining traction amidst its recent high-volume sessions. Amidst its consolidative range of ₹1750 to ₹1800, it’s flashing a promising bullish pattern in recent candlestick formations. Notably, it maintains confidence above critical EMAs— a telltale sign of enduring strength.
The RSI, a crucial momentum gauge, is on an upward path, currently at 59. Investors entering the arena would do well to aim for the ₹1900 target, ensuring their risk with a trailing stop near ₹1740.
Concluding Thoughts
In summary, Bagadia’s astute observations and analyses shed some illuminating light on these promising equities amidst fluctuations. Do note the indispensable disclaimer: these reflections belong solely to the analysts or broking firms; investing proceeds smoother when you consult certified experts first.
Catch the latest on Business News, Market Updates, and Breaking News on Live Mint and consider downloading the Mint News App for up-to-the-minute market updates.
