Buy or sell stocks: In truncated week due to stock market holiday falling on Friday due to Dr Baba Saheb Bhim Rao Ambedkar Jayanti, key benchmark indices — Sensex, Nifty and Bank Nifty logged gains on all four sessions from Monday to Thursday. In the week gone by, NSE Nifty logged 229 points gain or 1.30 per cent weekly gain whereas Nifty Bank index shot up 2.66 per cent last week and ended at 42,132 mark. 30-stock index BSE Sensex surged near 600 points in last four sessions and finished at 60,431 levels.
Buy or sell stocks for Monday
Sumeet Bagadia, Executive Director at Choice Broking believes that one should maintain stock specific strategy amid results season. On stocks to buy on Monday after stock market holiday, the Choice Broking expert listed out the following three shares — HDFC Life, Bajaj Finserv and Eicher Motors — to buy when Indian stock market opens on Monday:
1] HDFC Life: Shares of this company is currently trading at ₹528, has been trending upwards since hitting a low of ₹462. The stock has been moving within a positive upward trending channel, taking support along the way. This indicates that the stock is showing strong bullish momentum and is likely to continue its upward trend.
Furthermore, HDFC Life share price is currently trading above its short-term, mid-term, and long-term moving averages of 20, 50, and 100, respectively. This is a positive sign as it shows that the stock has been consistently trading above its moving averages, indicating strong buying momentum.
The Relative Strength Index (RSI) is currently at 68, indicating that the stock is in a strong bullish momentum phase. After facing resistance at ₹515, HDFC Life share has given a breakout and is poised to move up towards the target range of ₹560-572. The level of ₹560 is the 61.8 per cent retracement of the swing low and is a significant resistance level that needs to be crossed for the stock to continue its upward trend.
In conclusion, based on the current technical analysis, HDFC Life is expected to continue its upward trend and move towards the target range of ₹560-572. However, if the stock breaks below the support level of ₹505, this bullish view will be invalidated, and the stock may face further downside risk.
2] Bajaj Finserve: Shares of this financial company has broken above a long-term downward sloping trendline resistance, which has been acting as a barrier to the stock’s upward movement. Currently, the stock is trading at ₹1340 and is above its 50 and 100 EMA, indicating a positive trend. The RSI of the stock is trading at 57, which is a healthy level, suggesting that the stock is not overbought.
Furthermore, there was a positive RSI divergence seen when Bajaj Finserve share price was trading at ₹1254 and the RSI was at 19. However, when the stock moved down to ₹1215, the RSI was at 31. This could be an indication of a potential bullish trend reversal in the stock.
Investors looking to accumulate shares in Bajaj Finserv may want to consider buying within the ₹1340-1315 range. The stock is expected to reach targets of ₹1425-1465, and views on this stock will only be negated if it falls below ₹1285. Overall, Bajaj Finserv share price has the potential to continue its upward trend, and investors may want to keep an eye on this stock for further opportunities.
3] Eicher Motors: Share price of the leading automobile manufacturer, is currently trading at ₹3220 levels. The stock has been under a bearish trend for a while, but recent technical analysis indicates a potential bullish reversal.
On the weekly charts, the Eicher Motors share price has formed a bullish candle with a breakout of a downward sloping trend line, indicating a potential bullish trend. On the daily charts, the stock has formed a 3 rising soldiers pattern, which is a strong bullish signal and indicates strength in the stock.
Moreover, the stock has surpassed all important moving averages, which were acting as resistance, further strengthening the bullish case. Based on the above analysis, we recommend purchasing EICHERMOT at the current market price of ₹3220. Investors can also accumulate the stock near ₹3160 levels, with a medium-term target price of 3380.
However, investors must also monitor the stock’s price closely as our analysis will be considered invalid if the price closes below ₹3100. This could indicate a change in market sentiment or underlying fundamentals, and investors may need to reassess their investment strategy.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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