Buy or sell: BHEL to Bajaj Finserv — Sumeet Bagadia recommends three stocks to buy on Monday — April 8

Stocks to buy or sell: The Indian stock markets registered gains for the week gone by as they remained well supported by strong macroeconomic data in the form of PMI numbers. After record GST collection, Q4 results 2024 of the listed companies are eagerly awaited as the market is expecting satisfactory growth in the quarter ended March 2024.

The growth story to continue further in FY25 was seconded by the Reserve Bank of India (RBI) when it left key rates unchanged in the RBI monetary policy meeting last week. However, the current volatility in the Indian stock market is expected to continue for the entire month as investors are expected to react to every development regarding the US Fed rate cut. The US Fed meeting is scheduled from 30th April to 1st May 2024.

Also Read: Why are gold, silver prices flirting with record highs? — explained

Stocks to buy on Monday

Sumeet Bagadia, Executive Director at Choice Broking believes that the Nifty 50 index is in the 22,250 to 22,550 range and a bullish or bearish trend can be assumed on breakage of either side of the range. The Choice Broking expert went on to add that the Bank Nifty index outperformed the other two benchmark indices. Bagadia predicted that the Bank Nifty index may become highly bullish once it breaches its previous peak zone placed around the 48,150 to 48,200 range.

Also Read: Why is IREDA share price skyrocketing? — explained

On stocks to buy next week, Sumeet Bagadia of Choice Broking recommended three buy or sell stocks for short-term investors — Bajaj Finserv, IndusInd Bank, and BHEL.

Also Read: IRFC, Bajaj Finance to HDFC Bank — experts recommend these 5 shares to buy after RBI monetary policy meeting

Shares to buy or sell

1] Bajaj Finserv: Buy at ₹1680, target ₹1785, stop loss ₹1625.

Bajaj Finserv share is currently trading at ₹1680, displaying a pattern of higher highs and higher lows, indicative of bullish momentum likely to persist. A potential breakout above ₹1680 could propel the stock towards the ₹1785 level, with immediate resistance at ₹1725. On the flip side, ₹1625 serves as a crucial support level. Furthermore, Bajaj Finserv share price is trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This signifies a robust bullish trend, suggesting the possibility of continued upward movement. The Relative Strength Index (RSI) is currently at 65, on an upward trajectory, indicating growing buying momentum. The Stochastic Relative Strength Index (Stoch RSI) supports this bullish sentiment with a positive crossover. Collectively, these technical indicators imply that Bajaj Finserv share price has the potential to reach the ₹1785 target in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at ₹1625 to protect the investment in case of an unexpected market reversal. A prudent strategy would involve considering buying opportunities on dips at levels around ₹1655 and ₹1635. In summary, based on technical analysis and prevailing market conditions, Bajaj Finserv share appears to present a promising buying opportunity for those targeting a ₹1785 price objective. It is crucial to implement prudent risk management strategies to navigate potential market fluctuations.

2] IndusInd Bank: Buy at ₹552.40, target ₹1680, stop loss ₹1490.

IndusInd Bank share, currently trading at ₹1552.40, has recently traded within a range while forming a new higher high and higher low, indicating a strong uptrend. The immediate resistance is near the ₹1600 level, and the current price exhibits strong bullish momentum, expected to continue toward the ₹1680 level. On the flip side, there is strong support near ₹1500.

Moreover, IndusInd Bank shares are trading above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, indicating robust bullish momentum and suggesting potential for further upward price movement. The Relative Strength Index (RSI) is presently at 57.40, showing an upward trajectory and indicating increasing buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) exhibits a positive crossover. These technical indicators collectively suggest that IndusInd Bank shares may have the potential to reach a target price of ₹1680 in the near term.

To manage risk effectively, it is advisable to set a stop-loss (SL) at ₹1490 to safeguard the investment in the event of an unexpected market turn. A prudent strategy would be to consider buying on dips at levels of ₹1520 and ₹1500. Overall, considering the technical analysis and current market conditions, IndusInd Bank share presents a promising buying opportunity for those aiming for a ₹1680 price target, provided that prudent risk management measures are in place.

3] BHEL: Buy at ₹255, target ₹275, stop loss ₹242.

BHEL share price, presently trading at ₹254.95 levels, exhibits a positive technical outlook. BHEL share price is fortified by a robust support level of around ₹242, aligning with the 20-Day Exponential Moving Average (EMA). This convergence enhances the stock’s stability and reinforces its potential for upward movement. Currently, BHEL share price is trading above all important moving averages, indicating strength in its current trend. This is often considered a positive signal by technical analysts.

The Relative Strength Index (RSI), a momentum indicator, is comfortably trading around 62.22 levels. This RSI reading suggests a moderate level of strength in the stock, indicating that it is not excessively overbought and has room for potential further upward movement. A minor resistance is observed near 260 levels.

If BHEL share price successfully surpasses this resistance, it may advance towards the target level of ₹275 and beyond. This represents a potential opportunity for investors and traders. Based on the above analysis we recommend buying BHEL at a CMP of ₹254.95, it can also be added on dips up to 249 with a stop loss of ₹242 for the targets of ₹275.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.