20 May Buy or Sell: 3 Stocks to Watch on Monday May 22 by Sumeet Bagadia

Sumeet Bagadia’s Stock Picks: 3 Recommended Stocks

The Indian stock market finished higher on Friday, breaking a three-day losing streak. The NSE Nifty gained 73 points to close at 18,203 levels, while the BSE Sensex rose 297 points to close at 61,729. The Bank Nifty index also saw an increase of 217 points to finish at 43,969 levels. However, the small-cap and mid-cap indices ended lower on Friday.

According to Sumeet Bagadia, the Executive Director at Choice Broking believes that the Nifty index today has strong support placed at 18,000 to 17,900 levels.

As long as the Nifty index sustains above this level, any dips in the market should be seen as buying opportunities. Bagadia maintains that all three benchmark indices are in an uptrend, indicating the potential for a further rise in the upcoming sessions.

He has recommended three stocks to buy on Monday on Technical Analysis Basis:(SOURCE:MINT)

M&M (Mahindra & Mahindra), Kotak Mahindra Bank, and TCS (Tata Consultancy Services)

It’s important to note that this recommendation is specific to Bagadia’s analysis and does not constitute financial advice. Investors should conduct their own research and consider their risk tolerance before making any investment decisions. To learn more about stock market basics and stock analysis one can consider enrolling in our Stock Market Learning Courses, here .

1] Mahindra & Mahindra (M&M):

Target Price – Rs 1325

Stop Loss – Rs 1220

The Technical:

-Stock is currently trading near ₹1260 and has formed a hammer pattern on the daily chart. The hammer pattern is typically considered a bullish reversal signal, indicating a potential change in the bearish trend of the stock.

-The Relative Strength Index (RSI) indicator is showing strength, with the current trading range at 58 levels. This suggests that the stock has positive momentum.

-Furthermore, the stock is trading above all the key moving averages, which is generally considered a bullish sign. It indicates that the stock’s price is performing well in relation to its historical average prices.

-The Bollinger Bands, which measure the volatility of the stock, are expanding on the daily chart. The stock is trading above the center line of the Bollinger Bands, indicating strength in the stock’s price movement.

-There is a small resistance level near ₹1285. If the stock price surpasses this level, it may potentially move towards ₹1325 and higher levels.

Company Introduction: Mahindra & Mahindra (M&M)

Mahindra & Mahindra (M&M) is a renowned Indian conglomerate operating across multiple industries.

With its automotive manufacturing expertise, focus on the agricultural sector, diversified business model, commitment to electric mobility, and global presence, M&M continues to be a prominent player in the Indian and global markets.

Founded in 1945, it has grown to become one of India’s prominent business entities.

The company operates in various industries, including

-automotive,
-aerospace,
-agribusiness,
-construction equipment,
-defense,
-energy,
-finance,
-hospitality,
-information technology,
-leisure and hospitality,
-real estate, retail, and
-telecommunications.

2] Kotak Mahindra Bank:

Target Price – Rs 2050

Stop Loss – Rs 1895

The Technical:

-Based on the provided analysis, the stock price of the bank is consolidating and establishing a strong support level in the ₹1910 to ₹1920 range on the weekly chart. This consolidation indicates that the stock is stabilizing and forming a solid base.

-The short-term support is further supported by the fact that the stock’s current price is above the 21 Simple Moving Average on the weekly chart. This moving average acts as a support level and indicates positive momentum.

-On the hourly chart, the stock is exhibiting a higher-high-higher-low pattern, which is a bullish sign. This pattern suggests an uptrend in the stock’s price movement.

-The daily Relative Strength Index (RSI) is at a level of 60, indicating that the stock has moderate strength. RSI is a momentum indicator that measures the speed and change of price movements.

Company Introduction: Kotak Mahindra Bank

Kotak Mahindra Bank is a leading private sector bank in India, offering a wide range of financial products and services across various segments.

With its diverse offerings, customer-centric approach, emphasis on technology, and strong distribution network, the bank continues to be a key player in the Indian banking and financial services industry.

Established in 1985, it has grown to become one of the prominent financial institutions in India.

The bank operates in various segments, including

-commercial banking,
-investment banking,
-stockbroking,
-asset management,
-life insurance, and
-general insurance.

3] Tata Consultancy Services or TCS:

Target Price – Rs 3340

Stop Loss – Rs 3150

The Technical:

The current trading price of TCS (Tata Consultancy Services) is ₹3222. Here is an analysis of the stock’s recent price movement:

TCS shares experienced a month-long rally from its lows of ₹3071.50 to the highs of ₹3309.70. However, the stock has retraced and settled at ₹3222. This retracement suggests a temporary pullback after the upward movement.

On the chart, TCS has established a strong support level in the range of ₹3180 to ₹3200. This indicates that the stock has found significant buying interest around these levels, potentially providing a foundation for further upward movement.

The Relative Strength Index (RSI) for TCS is currently at 49, suggesting that there is still room for potential upside. RSI is a momentum indicator that measures the strength and speed of price movements, with values above 50 indicating bullish momentum.

Company Introduction: Tata Consultancy Services (TCS)

Tata Consultancy Services (TCS) is a global leader in IT services, consulting, and business solutions. It is part of the Tata Group, one of India’s largest business conglomerates.

Founded in 1968, TCS has grown to become one of the world’s largest IT services companies.

TCS offers a comprehensive range of services, including
-IT consulting,
-application development and management,
-infrastructure services,
-enterprise solutions,
-digital transformation, and
-business process outsourcing

The company provides industry-specific solutions for sectors such as banking and financial services, healthcare, retail, manufacturing, telecommunications, and more.

TCS also specializes in emerging technologies like artificial intelligence, cloud computing, blockchain, the Internet of Things (IoT), and cybersecurity.

It is important to consider the overall market conditions and conduct a thorough analysis before making investment decisions.

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