As the Indian stock market opened with gains amid expectations of a partial US shutdown, investors are keenly watching the market for potential opportunities. The Nifty 50 index gained 114 points to close at 19,638, while the BSE Sensex rose by 320 points to end at 65,828. Additionally, the Bank Nifty index added 283 points, closing at 44,584. Asian equities also saw gains, led by a rally in Hong Kong, driven by optimism surrounding China’s Golden Week holiday and its potential to boost consumption and sentiment.
In preparation for the upcoming week, Sumeet Bagadia, Executive Director at Choice Broking, has provided insights into the intraday trading strategy and recommended three stocks to buy next week: Hero MotoCorp, Dr. Reddy’s, and Metro Brands.
Stock Picks for Next Week:
1. Hero MotoCorp:
- Buy at ₹3057
- Target: ₹3217
- Stop Loss: ₹2955
Hero MotoCorp’s stock, currently priced at ₹3057, has demonstrated strong adherence to a steadfast trendline support since June, showcasing resilience in the market. A recent bounce from this support level indicates a potential upswing. The stock has also convincingly closed above key short, mid, and long-term moving averages (20, 50, 100, and 200-day EMAs), signaling a robust upward trend. With the Relative Strength Index (RSI) at 55 and an Average Directional Index (ADX) of 24, further supporting upward movement, a strategic buy position is recommended at the current price, with a target of ₹3217. To manage risk, consider a stop loss at ₹2955.
2. Dr. Reddy’s Lab:
- Buy at ₹5587
- Target: ₹5920
- Stop Loss: ₹5410
Dr. Reddy’s shares, currently trading at ₹5587, have exhibited a strong bullish reversal after consolidating within the support price breakout range of ₹5600 to ₹5415. The stock is trading above critical Exponential Moving Averages (EMAs), including the 50-day, 100-day, and 200-day EMAs, reinforcing its bullish momentum. The RSI at 48.80, trending upward, and a positive crossover of the Stochastic Relative Strength Index (Stoch RSI) from the oversold region suggest the potential for a target price of ₹5920 in the near term. Implement a stop loss at ₹5410 to manage risk.
3. Metro Brands:
- Buy at ₹1126.25
- Target: ₹1200
- Stop Loss: ₹1100
Metro Brands shares, currently trading at ₹1126.25, have broken out of a long consolidation range in a Rectangle pattern, closing at ₹1126.25 with substantial trading volume. The stock is trading above critical EMAs, including the 50-day, 100-day, and 200-day EMAs, indicating bullish momentum. With an RSI at 62 and an upward trend, along with a positive Stoch RSI crossover from the oversold region, Metro Brands shares have the potential to reach a target price of ₹1200. Implement a stop loss at ₹1100 for risk management.
These stock recommendations are based on technical analysis and market conditions, offering potential opportunities for traders and investors in the coming week.
