The market next week: Sumeet Bagadia’s 3 Stock Recommendations
Due to strong global market sentiments bolstered by better-than-expected Chinese economic data, the Indian stock market concluded in positive territory for the third consecutive session.
Market Performance:
- The Indian stock market ended the week on a positive note for the third consecutive session.
- NSE Nifty achieved a record close of 20,192 levels and hit a new all-time high of 20,222 during Friday’s trading.
- BSE Sensex also closed at a record high of 67,838 levels, reaching a peak of 67,927.
- The Nifty Bank index recorded a gain of 230 points, closing at 46,231 levels.
Institutional Investors (FIIs) Activity:
- FIIs continued their selling streak, marking the eighth consecutive week of offloading equities. They sold equities worth Rs 746.62 crore during the week.
- In contrast, DIIs exhibited a strong buying trend by purchasing equities worth Rs 3,363.36 crore in the same week.
Here’s a summary of the business events for the week ahead, from September 18th to September 22nd, 2023:
Monday, September 18:
- IPO Listing: Shares of Jupiter Life Line Hospitals may list on the stock exchanges.
Tuesday, September 19:
- Canada Inflation: Canada will release the inflation rate for August.
- US Building Permits: Data for August will be released.
Wednesday, September 20:
- IPO: The IPO of Sai Silks (Kalamandir) will open for subscription.
- India Money Supply: The Reserve Bank of India will release the money supply data.
- China Loan Prime Rate: China’s central bank will decide on the loan prime rates.
- UK Inflation: Data for August will be released.
- US Interest Rate Decision: The US Federal Reserve will decide on the interest rates.
Thursday, September 21:
- IPO Listing: Shares of EMS may list on the stock exchanges.
- UK Interest Rate Decision: The Bank of England will decide on the interest rates.
- Interest Rate Decisions: The central banks of Brazil, Indonesia, South Africa, Saudi Arabia, and Turkey will also decide on interest rates.
- US Jobless Claims, Existing Home Sales: Data for jobless claims and existing home sales will be released.
Friday, September 22:
- IPO: The IPO of Manoj Vaibhav Gems N Jewellers will be open for subscription.
- India Bank Loan, Deposit Growth: Data on bank loans and deposits will be released.
- Japan Interest Rate Decision, Inflation: The Bank of Japan will decide on interest rates and release inflation data.
- Euro Area Manufacturing, Services PMI: HCOB flash PMI data for manufacturing and services sectors will be released.
- US Services, Manufacturing PMI: The S&P Global will release the flash PMI data for September.
Market Strategy for Next Week:
Looking ahead to the next week, Sumeet Bagadia, Executive Director at Choice Broking, is optimistic about the Indian stock market, particularly as mid-cap and small-cap stocks have resumed their participation in the current rally. Bagadia suggests that Nifty appears poised to reach a near-term target of 20,350.
He also recommends three stocks to buy on Monday as part of the stock market strategy for the upcoming week on Livemint.
Also Read: “Midcap stocks with ‘strong buy’ & ‘buy’ recommendations by Experts”
Bharti Airtel:
- Buy Price: Rs. 926-930
- Target Price: Rs. 980
- Stop Loss: Rs. 900
Bharti Airtel is one of India’s leading telecommunications companies. It provides a wide range of telecommunication services, including mobile, broadband, and digital TV.
Bharti Airtel is known for its extensive network and has a significant presence in the Indian telecom industry.
Technical Analysis:
- Uptrend: Bharti Airtel shares are in an uptrend, forming higher highs and higher lows, indicating growing confidence in the stock’s potential.
- Strong Support: The previous resistance near Rs. 900 has become a strong support level, indicating a breakthrough and potential for further price appreciation.
- Moving Averages: The stock is trading above the 20, 50, and 200-day Exponential Moving Averages (EMAs), emphasizing its bullish momentum.
- Volume: Strong trading volumes suggest substantial investor interest and confidence.
Mahindra & Mahindra (M&M):
- Buy Price: Rs. 1600
- Target Price: Rs. 1780
- Stop Loss: Rs. 1535
Mahindra & Mahindra (M&M) is a prominent Indian automotive manufacturer. It produces a variety of vehicles, including SUVs, trucks, and tractors.
M&M is recognized for its strong presence in the automotive and farm equipment sectors.
Technical Analysis:
- Rounding Bottom: M&M’s share price has formed a rounding bottom pattern, indicating potential upward movement.
- Moving Averages: The stock is trading above crucial EMAs, including the 20-day, 50-day, 100-day, and 200-day EMAs, reflecting bullish momentum.
- RSI and Stoch RSI: RSI at 60 with an upward trajectory and positive crossover in Stoch RSI indicate increasing buying momentum.
Rainbow Children’s Medicare Limited:
- Buy Price: Rs. 1025
- Target Price: Rs. 1075
- Stop Loss: Rs. 985
The primary focus of Rainbow Children’s Medicare Ltd is pediatric healthcare. They specialize in providing a wide range of medical services for children, including neonatology, pediatrics, pediatric surgery, and other pediatric subspecialties.
Rainbow Children’s Medicare Ltd is known for its state-of-the-art facilities and expertise in pediatric care.
Technical Analysis:
- Support Zone: Rainbow’s stock price has a robust support zone between Rs. 1000 to Rs. 1016, indicating a rebound from this range.
- RSI: Relative Strength Index (RSI) at 48 with a recent crossover suggests positive momentum.
- Moving Averages: Trading above pivotal moving averages, including the 100 and 200 Exponential Moving Averages (EMAs), signifies bullish sentiment.
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