Stocks went up this week in India. The Nifty 50 rose by 3.4%, closing at 23,290.15 points, while the Sensex climbed by 3.7% to 76,693.36. This recovered all the losses from Tuesday when Narendra Modi’s alliance won the general elections by a narrow margin.
The Reserve Bank of India (RBI) also gave good news, raising its forecast for the country’s economic growth to 7.2% for the current fiscal year.
In the US, the job market showed strength in May, with more jobs added than expected. Wage growth also increased, suggesting a strong labor market. This reduces the likelihood of the Federal Reserve decreasing interest rates in September.
However, there was a slight increase in the unemployment rate in the US, from 3.9% in April to 4.0% in May.
Looking ahead, experts are keeping an eye on several factors including the US Fed’s interest rate decision, the movement of the rupee against the dollar, crude oil prices, and commodity prices. They’re also watching investments by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs).
Here are three stocks recommended by Sumeet Bagadia for Monday –
- Tech Mahindra Ltd,
- UltraTech Cement Ltd, and
- Dr Reddy’s Laboratories Ltd.
Tech Mahindra Ltd
Tech Mahindra Ltd is a big player in the technology sector. The stock has shown strength by breaking above the 1,320 level, trading at 1,377.60 per share. It’s trading above its 20, 50, and 200-day moving averages, which is a good sign. The stock may face some resistance at 1,400 levels, but if it stays above this level, it could go higher. The Relative Strength Index (RSI) is also looking good, which suggests more buying activity. Investors should keep an eye on the stock and watch if it falls below 1,320 levels.
UltraTech Cement Ltd
UltraTech Cement Ltd is currently trading at 10,463.15 levels, showing a strong recovery from the support level of 9,960. It’s facing some resistance near 10,530 levels, but if it breaks above this, it could go up to 11,300 levels. The RSI is also moving higher, indicating more bullish sentiment. Investors can consider buying UltraTech Cement at current levels or on dips near 10,200 levels, with a target of 11,300 and a stop loss of 9,960.
Dr Reddy’s Laboratories Ltd
Dr Reddy’s Laboratories Ltd is currently trading at 6,061.30 levels. It’s shown strength by breaking out of a falling trend line with good volumes. The stock is trading above its key moving averages, which is positive. It has a strong support level at 5,800, which is important to maintain its bullish stance. The RSI is also on an upward trend, suggesting more buying interest. Investors can consider buying Dr Reddy’s Laboratories at current levels or on dips near 5,960 levels, with a target of 6,410 and a stop loss of 5,800.
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