In response to robust global market cues, the Indian stock market witnessed a second consecutive session of gains last Friday. The Nifty 50 index surged by 107 points, closing at 19,653, while the BSE Sensex climbed 364 points to reach 65,995. The Bank Nifty index also performed well, ending 147 points higher at 44,360. Market breadth remained positive, with an advance-decline ratio of 1.88:1.
Market Strategy for the Upcoming Week
Sumeet Bagadia, Executive Director at Choice Broking, expressed optimism about the Indian stock market’s sentiment following the broad market indices’ participation in Friday’s rally. Bagadia emphasized that for a fresh bullish trend to materialize on Dalal Street, the Nifty 50 index must breach the 19,850 resistance level on a closing basis.
Stock Recommendations for Monday
Sumeet Bagadia has recommended three stocks to consider for the upcoming week: Titan Company, DLF, and Aditya Birla Capital.
1. Titan Company
- Recommendation: Buy at ₹3310
- Target Price: ₹3500
- Stop Loss: ₹3140
Titan’s current share price is ₹3309.75, and it has recently been consolidating within the ₹3140 to ₹3210 range over the past five days. This consolidation pattern may indicate a potential breakout. Notably, the stock has strong support at ₹3140, aligning with the 50-day Exponential Moving Average (EMA). Resistance is expected around ₹3350, with a breach potentially leading to a bullish trend targeting ₹3500. Positive indicators, including a strong bullish candle on the daily chart and an RSI at 62, suggest potential upward movement.
- Recommendation: Buy at ₹548
- Target Price: ₹581
- Stop Loss: ₹530
DLF’s share price exhibits favorable technical indicators, indicating a potential bullish trajectory. The stock recently broke out on the daily chart, supported by robust trendline support. DLF has surpassed critical short, mid, and long-term moving averages (20, 50, 100, and 200-day EMAs), signaling strong upward momentum. The RSI stands at 64, and the ADX reading is 21, affirming the strength of the prevailing trend. A long position in DLF at ₹548, with a stop-loss at ₹530, is prudent, targeting ₹581.
3. Aditya Birla Capital (AB Capital)
- Recommendation: Buy at ₹185.50
- Target Price: ₹196
- Stop Loss: ₹173
Aditya Birla Capital’s share price is trading at ₹185.50 and displays promising price action for a potential reversal on the daily chart. It is trading above crucial EMAs (20, 50, 100, and 200-day), indicating bullish momentum. The RSI is at 51.1 and trending upward, while the Stochastic RSI recently had a positive crossover from the oversold region. These indicators suggest potential for AB Capital to reach ₹196. Implementing a stop-loss at ₹173 is advisable for risk management.
In conclusion, considering technical analysis and prevailing market conditions, Aditya Birla Capital presents an attractive buying opportunity with a target price of ₹196, provided prudent risk management measures are in place.