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

Despite weak sentiments at the Asian bourses, the Indian extended its winning streak for the fourth straight session on Friday. Nifty 50 index finished at the 21,894 level after climbing to a new peak of 21,928. Sensex ended at 72,568 mark after hitting a new peak of 72,568. The Nifty Bank index gained 271 points and closed at 47,709 level.

Broad market indices rose less than the Nifty even as the focus remained on large cap IT stocks, Bank stocks and Reliance. The advance decline ratio remained positive at 1.09:1. Stock market strategy for next week Sumeet Bagadia, Executive Director at Choice Broking believes that market mood has turned positive after strong rally on Friday.

Choice Broking expert maintained that Nifty 50 index is now looking well set to touch 22,150 to 22,200 levels. On stocks to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday — Tata Consumer Products, State Bank of India (SBI) and Mahindra & Mahindra Finance. Stocks to buy next week Buy at 1157, target 1340, stop loss 1070.

Tata Consumer shares are presently trading at a record high of 1157, indicating a bullish trend on the daily chart marked by higher highs and higher lows, accompanied by significant trading volume. This pattern suggests strong bullish momentum in the stock. It is advisable to consider buying on market corrections at levels around 1100 and 1080.

Additionally, the stock is positioned above key Exponential Moving Averages (EMAs), including the 20 day, 50 day, 100 day, and 200 day EMAs. This alignment above crucial EMAs reinforces the bullish sentiment, pointing towards the potential for sustained upward price movement. The Relative Strength Index (RSI) is currently at 89 and trending upwards, reflecting an increase in buying momentum.

The convergence of these technical indicators indicates that TATACONSUM may have the potential to achieve a target price of 1340 in the near term. To manage risk effectively, it is recommended to implement a stop loss (SL) at 1070. This precautionary measure is crucial to safeguard your investment in case of an unexpected market reversal.

In summary, considering the technical analysis and prevailing market conditions, Tata Consumer share appears to present an appealing buying opportunity for those aiming for a 1340 price objective, provided prudent risk management measures are in place. Buy at 633.60, target 670, stop loss 615. SBI share price currently stands at 633.60 levels with a strong support base at 615, coinciding with the 50 Day Exponential Moving Average (EMA).

The stock's upward momentum is reinforced by trading above all key moving averages, affirming its overall strength. Identified resistance at 652 levels presents a potential breakout point. A successful breach could propel SBIN above the new all time high of 670 levels, offering a clear target for traders and investors.

The Relative Strength Index (RSI) at 55 indicates a healthy level of strength without venturing into overbought territory. Strategically, maintaining long positions with a trailing stop loss at 615 is advised, ensuring protection of gains while allowing for potential upward movement. The stock's purchase on dips provides an opportunity to enter or add to positions at potentially lower levels.

Based on the above analysis we recommend buying SBIN at CMP of 633.60. It can also added on dips near 623 levels for the target of 670 with a stop loss of 615. Buy at 280, target 314, stop loss 263. M&MFIN share price is currently trading at 280.10 levels, and on the daily chart, the price is consolidating at a support level, indicating readiness for a breakout, accompanied by significant trading volume.

This pattern suggests a robust bullish momentum in the stock. It is advisable to consider buying on market corrections at levels around 274 and 270. Furthermore, the stock is positioned above key Exponential Moving Averages (EMAs), including the 20 day, 50 day, 100 day, and 200 day EMAs. This alignment above crucial EMAs reinforces the bullish sentiment, suggesting the potential for sustained upward price movement.

The Relative Strength Index (RSI) is currently at 55.73 and trending upwards, reflecting an increase in buying momentum. The convergence of these technical indicators indicates that M_MFIN may have the potential to reach a target price of 314 in the near term. To manage risk effectively, it is recommended to implement a stop loss (SL) at 263.

This precautionary measure is crucial to safeguard your investment in case of an unexpected market reversal. In summary, considering the technical analysis and prevailing market conditions, M_MFIN appears to present an appealing buying opportunity for those aiming for a 314 price objective, provided prudent risk management measures are in place.

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