17 Jun Buy or Sell: 3 Stocks to Watch This Week

Market next week- Sumeet Bagadia’s 3 Stock Recommendations 

This Week, the domestic markets remained in a positive zone, with the benchmark Nifty coming close to its all-time high levels, thanks to better-than-expected macroeconomic data.

Moderation in domestic CPI inflation data suggests that inflation is moving closer to the target set by the Reserve Bank of India (RBI). The Foreign and domestic funds engaged in buying activities, which resulted in equity benchmarks reaching record closing highs. Investors seem optimistic that the recent decline in inflation will prompt a sustained halt on interest rate hikes, which would be beneficial for corporate profitability. To learn more about stock market basics and stock analysis one can consider enrolling in our Stock Market Learning Courses, here.

The upcoming visit of PM Modi to the US next week is anticipated to be a significant event. It is expected to bring cross-border agreements, with a particular focus on the Defense sector. This visit could have implications for various industries, including Pharma, Healthcare, and Insurance companies, which are likely to remain in focus.

The positive ending of most Sensex stocks for the week indicates overall market optimism and investor sentiment.

Overall, with major events now behind us, the market’s structure is expected to remain positive. However, it is important to closely monitor market developments and news related to PM Modi’s visit and any potential cross-border agreements, as they can have a significant impact on specific sectors and individual stocks.

Prudent risk management and a thorough analysis of market conditions are crucial for making informed investment decisions.

The Week:

-Buying by foreign and domestic funds propelled equity benchmarks to record closing highs.

-Foreign portfolio investors (FPIs) purchased stocks worth a provisional Rs 794.78 crore, while domestic institutional investors (DIIs) bought shares worth Rs 681.33 crore.

-The Nifty and the Sensex each closed up 0.74% at 18,826 and 63,384.58, just shy of their record intra-day highs achieved on 1 December.

-The Nifty Midcap 100 index reached a record high of 35,198.05.

-Aggregate market capitalization hit an all-time high of Rs 292.74 trillion.

-Broad market indices rose alongside the Nifty, with an advance-decline ratio of 1.74:1.

Analysts expect the Nifty and the Sensex to test their 1 December peaks shortly, as they broke psychological resistance levels of 18,800 and 63,000, respectively.

Also Read:These 6 banks offering more than 9% FD interest rates for senior citizens

Sumeet Bagadia’s analysis For Coming Week (As reported in the Livemint article):

The Technicals

Strong Support: Sumeet Bagadia believes that Nifty has a strong support level of 18,650. This means that Nifty is expected to find buying interest and potential price stability around this level.

Resistance Level: The Nifty is facing resistance at 18,900. Resistance levels are areas where selling pressure could increase and potentially limit further upward movement.

Invalidating Bearish Engulfing Pattern: Bagadia highlights that the Nifty’s close above 18,800 has negated the negative pattern of bearish engulfing observed on Thursday. This reversal of the bearish pattern could indicate a shift in market sentiment toward bullishness.

Bagadia points out that the Nifty is just 61 points away from its all-time high of 18,887. This suggests that the Nifty is approaching a significant milestone and could potentially reach a new peak.

According to Sumeet Bagadia’s recommendation, there are 3 stocks that he believes may provide significant returns in the upcoming week.

These stocks are:

More to Read:Can ITC shares reach Rs 1000 Levels?

ITC

Target Price – Rs 479

Stop Loss – Rs 439

The Technical:

–ITC’s share price has broken out at Rs 450 after a brief consolidation phase. This breakout suggests the potential for further upward movement in the stock price.

-The stock has found support at the mean of the Bollinger Bands, indicating a potentially bullish outlook. The expansion of the bands also suggests increased volatility, which can accompany price trends.

-The positive crossover in the DMI at 30 signifies strength in the stock, while the RSI reading of 67 with a positive crossover indicates growing momentum. These indicators support the potential for upward movement in ITC’s share price.

Company Introduction:

ITC Limited is an Indian conglomerate company with a diverse presence in various sectors.

The company was founded in 1910 and has a rich history of over a century in the business industry.

ITC operates across multiple business sectors, including

-Fast-Moving Consumer Goods (FMCG),
-Hotels, Agri-Business,
-Paperboards and Packaging, and
-Information Technology.

Business Overview:

FMCG Segment: ITC has a strong presence in the FMCG sector with a wide range of products such as cigarettes, packaged food, personal care, and lifestyle products.

Hotels and Hospitality: The company owns and operates luxury hotels and resorts under the brand names ITC Hotels and Fortune Hotels. It is renowned for its premium hospitality services.

Agri-Business: ITC is involved in various aspects of the agricultural sector, including sourcing, processing, and exporting of agricultural commodities. It works closely with farmers to improve agricultural practices and promote sustainable farming.

Paperboards and Packaging: ITC is one of the largest manufacturers of paperboards and specialty papers in India. It offers a diverse range of packaging solutions for industries such as FMCG, pharmaceuticals, and more.

Information Technology: ITC’s Information Technology division provides IT solutions and services to clients globally. It offers software development, consulting, and outsourcing services.

Product Overview:

Cigarettes and Tobacco Products: ITC is a major player in the tobacco industry, manufacturing and selling a variety of cigarettes and tobacco-related products.

Packaged Foods: The company offers a wide range of packaged food products, including snacks, biscuits, instant noodles, ready-to-eat meals, and beverages under various brands.

Personal Care and Lifestyle Products: ITC has a portfolio of personal care products, including skincare, hair care, and fragrances. It also offers lifestyle products such as apparel and stationery.

Agri-Commodities: ITC deals in various agricultural commodities such as wheat, rice, coffee, spices, and more. It sources, processes, and exports these commodities to cater to domestic and international markets.

Paperboards and Specialty Papers: ITC manufactures and sells high-quality paperboards and specialty papers for packaging, printing, and other industrial applications.

CIPLA

Target Price – Rs 1050

Stop Loss – Rs 975

The Technical:

-Cipla’s share price has a strong support zone around the Rs 970 level, indicating a potential area where buying interest is present. The stock has risen from lower levels, further supporting the notion of a support zone.

-Cipla’s stock has surpassed the resilient levels of Rs 1,000. This breakthrough suggests increased strength and potential for further upward movement in the stock price.

-On the weekly charts, Cipla displayed a bullish candle, indicating strength in the stock. Additionally, the RSI indicator is maintaining above 65 levels, which suggests there is room for the stock to continue moving higher.

Company Introduction:

Cipla Limited is a leading global pharmaceutical company based in India.

The company was founded in 1935 and has a rich history of over 85 years in the pharmaceutical industry.

Cipla operates in more than 80 countries worldwide and has a strong presence in both developed and emerging markets.

Business Overview:

Pharmaceutical Manufacturer: Cipla is primarily engaged in the manufacturing and distribution of pharmaceutical products.

Diverse Portfolio: The company offers a wide range of products across various therapeutic segments, including
-Respiratory,
-Cardiovascular,
-Anti-infective,
-Neurology,
-Oncology, and more.

Research and Development: Cipla emphasizes research and development (R&D) activities to develop innovative and affordable medicines. The company invests significantly in R&D to address unmet medical needs.

Product Overview:

Generic Medicines: Cipla is known for its extensive portfolio of high-quality generic medicines. It focuses on providing affordable and accessible healthcare solutions globally.

Respiratory Products: Cipla has a strong presence in the respiratory segment and offers a range of inhalation therapies for conditions such as asthma and chronic obstructive pulmonary disease (COPD).

Biosimilars and Specialty Products: The company has ventured into the development and commercialization of biosimilars, which are biological medicines that are highly similar to existing biologic drugs. Cipla also offers specialty products for niche therapeutic areas.

Over-the-Counter (OTC) Products: Cipla manufactures and markets various OTC products, including vitamins, supplements, and personal care items.

Global Partnerships: Cipla has collaborations and partnerships with leading pharmaceutical companies worldwide to enhance its product offerings and expand its market reach.

More to Read:IEX share rebounds 10% from 52-week lows -UBS sees 58% upside in the stock

MAHINDRA & MAHINDRA FINANCIAL SERVICES

Target Price – Rs 317

Stop Loss – Rs 298

The Technical:

-The stock was facing resistance near Rs 299 levels, which represented the upper range of the consolidation phase. However, the stock has strongly moved higher, indicating a breakout on the charts. This breakout suggests a potential upward movement in the stock price.

-Any dip in the stock price around Rs 300 levels is considered a buying opportunity. This suggests that investors can consider accumulating the stock when it retraces to the mentioned level.

-The stock is trading above all important moving averages, indicating strength in the stock. This is a positive signal for potential further upward movement.

Company Introduction:

Mahindra & Mahindra Financial Services: Mahindra & Mahindra Financial Services is a subsidiary of Mahindra Group, one of the leading conglomerates in India.

The company was established in 1991 and has since grown to become a prominent player in the financial services sector.

MMFSL operates as a non-banking financial company, providing various financial products and services.

Business Overview:

Retail and Institutional Financing: MMFSL offers retail and institutional financing solutions, catering to the diverse financing needs of individuals and businesses.

Vehicle Financing: The company specializes in providing financing options for the purchase of Mahindra Group vehicles, including commercial vehicles, tractors, cars, and two-wheelers.

Rural and Semi-Urban Focus: MMFSL has a strong focus on serving customers in rural and semi-urban areas, aiming to provide inclusive financial services to individuals and communities in these regions.

Wealth Management Services: MMFSL also offers wealth management services, assisting customers in managing their financial assets and providing investment advisory services.

Product Overview:

Vehicle Loans: MMFSL provides vehicle loans to customers for the purchase of Mahindra Group vehicles, enabling individuals and businesses to acquire vehicles for personal or commercial use.

Tractor Loans: The company offers financing options specifically tailored for the purchase of Mahindra tractors, supporting farmers and agricultural businesses.

Personal Loans: MMFSL provides personal loans to individuals, offering financial assistance for various personal expenses, such as education, medical emergencies, home renovations, and more.

Business Loans: The company offers business loans to entrepreneurs and small business owners, facilitating capital investments, working capital needs, and expansion initiatives.

Insurance and Value-Added Services: MMFSL provides insurance products and value-added services such as extended warranty and service contracts to customers, ensuring comprehensive coverage and support for their financed assets.

Please note that these analyses are based on technical factors alone. It is essential to consider other factors, such as fundamental analysis and market conditions, before making any investment decisions. Additionally, individual risk tolerance and trading strategies should be taken into account when setting target prices and stop loss levels.

Please note that we are not SEBI-registered advisors or analysts. All the views shared in this article and all the content shared on aceink.com are only for learning and educational purposes. Any part of the article or any information on Aceink.com should not be interpreted or considered as investment advice. None of the opinions, views, or content posted on Aceink.com constitutes investment advice, as we are not SEBI-registered advisors or analysts.

DISCLAIMER:

We are not SEBI-registered advisors or analysts. All the views shared in this article and all the content shared on aceink.com are only for learning and educational purposes. Any part of the article or any information on Aceink.com should not be interpreted or considered as investment advice. None of the opinions, views, or content posted on Aceink.com constitutes investment advice, as we are not SEBI-registered advisors or analysts.

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The views expressed by investment experts, broking houses, news and media houses, rating agencies, etc., are their own and not those of Aceink.com or its management. Aceink.com advises users to consult a SEBI-registered investment advisor before making any decisions.
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