Buy or sell stocks: After showing an excellent upside recovery from the lows on Thursday, the Indian stock market shifted into a range-bound action for the whole session on Friday and closed in the red territory. The Nifty 50 index went off 4 points and closed at the 22,212 level, the BSE Sensex slipped 15 points and ended at the 73,142 mark while the Bank Nifty index lost 108 points and finished at 46,811 level.
After opening on a positive note, the Nifty 50 index was not able to sustain the opening gains and slipped into minor weakness amidst a range movement in the early part and later this sideways movement continued for the whole session. A new all-time high was formed at 22,297 levels and the 50 stock index closed near the lows.
Stock market strategy for next week
Sumeet Bagadia, Executive Director at Choice Broking believes that the Nifty 50 index went past the crucial 22,000 level decisively in the week gone by. The Choice Broking expert went on to add that overall Indian stock market sentiment is positive. Bagadia advised a ‘buy on dips’ strategy till the 50-stock index is above the 21,800 mark.
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Stocks to buy on Monday — February 26
On stocks to buy on Monday, Sumeet Bagadia recommended three shares to buy on Monday — Dr. Reddy’s Laboratories, Mahindra & Mahindra (M&M), and Reliance Industries Limited or RIL.
1] Dr Reddy’s Laboratories: Buy at ₹6442, target ₹6810, stop loss ₹6210.
Dr Reddy share price, currently trading at ₹6442.15 levels, demonstrates a robust technical outlook. The stock has a strong support zone near ₹6210, in close alignment with its 20 Day Exponential Moving Average (DEMA), signifying a solid foundation for potential upward movement. Trading above the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs further reinforces the positive trend, highlighting the stock’s sustained bullish momentum.
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A compelling development is the recent strong breakout above ₹6400 levels, indicating heightened strength and potential for further price appreciation. On weekly charts, DRREDDY has consistently formed higher highs and higher lows for the past five weeks, emphasizing a strong and consistent uptrend.
The momentum indicator, Relative Strength Index (RSI), currently at 70.22 levels, is in the overbought territory, underlining the stock’s strong upward momentum. On the higher side, the stock has the potential to move towards ₹6810 levels, presenting an attractive target for investors.
Based on this analysis, it is recommended to buy Dr Reddy share price at the current market price (CMP) of ₹6442.15. Additionally, investors may consider adding to their positions on dips near ₹6320, setting a stop loss at ₹6210, and targeting 6810 levels. This comprehensive strategy aligns with the positive technical indicators and potential for further upside in Dr Reddy share price.
2] M&M: Buy at ₹1930, target ₹2050, stop loss ₹1850.
M&M share price, presently trading at ₹1930 levels, displays a robust trend with a consistent formation of higher highs and higher lows over the last 7 days, signaling inherent strength. The stock is supported by a strong foundation near ₹1850 levels, indicating a resilient base for potential upward movements.
On the upside, the stock has the potential to reach ₹2050 levels, as suggested by Fibonacci Extension levels, reflecting a positive outlook for potential price…
Read More: Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — February