Stock Recommendations by Sumeet Bagadia: Asian Paints, Dr Reddy’s Laboratories, and Grasim Industries for Next Week

Expert Suggests Three Stocks to Buy Amid Market Conditions

Following a week where the Nifty 50 index lost 33 points and the BSE Sensex declined by 187 points, Sumeet Bagadia, Executive Director at Choice Broking, provided insights into the stock market strategy for Monday. Bagadia believes that the Nifty 50 index is encountering resistance in the 19,800 to 19,850 zone. He maintains a positive overall bias for the Indian stock market as long as Nifty is trading above 19,650 levels. Bagadia recommended three stocks to buy next week: Asian Paints, Dr Reddy’s Laboratories, and Grasim Industries.

Stock Recommendations for Monday:

Asian Paints:

• Buy at ₹3169
• Target: ₹3330
• Stop Loss: ₹3085

Asian Paints shares, currently trading at ₹3168.90, exhibited a sharp bounce from the support of ₹3085 levels, closely aligned with its 20-day EMA levels. The stock formed two bullish candles on weekly charts following a doji candle at the support levels. A small resistance is anticipated at ₹3230, and a close above this level could propel the stock towards further resistance at ₹3310. The RSI indicator, at 62, indicates strength for an upward movement. The recommendation is to buy Asian Paints shares at the current market price (CMP) or near ₹3125 with a medium-term target of ₹3310. The analysis is invalidated if the price closes below ₹3085.

Dr Reddy’s Laboratories:

• Buy at ₹5611
• Target: ₹6055
• Stop Loss: ₹5380

Dr Reddy’s Laboratories shares, currently trading at ₹5611.55, recently experienced a breakout of the daily trend line with robust volume. A potential gain in bullish momentum is expected if the price surpasses ₹5665. Buying opportunities around the ₹5500 level during corrections are recommended. Technical indicators, including moving averages (50-day, 100-day, and 200-day EMA), and an RSI of 61, suggest strength and balanced momentum. A stop-loss at ₹5380 is advisable to manage risk, with a short-term target range of ₹5840 to ₹6055.

Grasim Industries:

• Buy at ₹1972
• Target: ₹2077
• Stop Loss: ₹1910

Grasim Industries, trading at ₹1972, has demonstrated strength in technical indicators, closing above short, mid, and long-term moving averages (50, 100, and 200 EMA). The RSI at 62 and ADX at 21 suggest healthy momentum and a trend in progress. With a sideways to positive bias, Grasim shares present a favorable buying opportunity at the current level. Initiating a long position with a stop-loss at ₹1910 is suggested for managing downside risks. The target for this trade is ₹2077, reflecting the anticipated upward movement based on technical analysis.