The Indian Stocks market has been on an upward trajectory, with key indices such as the Nifty 50 and BSE Sensex showing significant gains. As we approach Monday, April 29, renowned stock expert Sumeet Bagadia from Choice Broking has recommended three promising stocks that investors should consider adding to their portfolio.
Stock Market Strategy for Next Week
Bagadia’s insights into the Nifty 50 index highlight a key hurdle at the ₹2,600 level. Despite facing this challenge last Friday, the 50-stock index is well-supported in the ₹22,100 to ₹22,150 zone. Bagadia suggests a buy-on-dips strategy, which involves taking advantage of significant price drops in the market to make strategic investments.
Stocks to Buy on Monday — April 29
ITC: Buy at ₹440, Target ₹475, Stop Loss ₹422
ITC’s current market price is around ₹440, with strong support between ₹422 to ₹428. The stock faces minor resistance at ₹448, which, if breached, could push the price towards the target of ₹475. Over the past six days, ITC has formed higher highs and higher lows, indicating sustained buying interest. The Relative Strength Index (RSI) is trending upwards at 63.35, suggesting positive momentum.
Investors should consider ITC’s technical setup, trading above all significant moving averages, and the favorable risk-reward scenario when entering the market. A stop-loss level below ₹422 is recommended to manage potential risks.
Cipla: Buy at ₹1409.15, Target ₹1520, Stop Loss ₹1340
Cipla shares are currently trading around ₹1409.15, with strong weekly bullish trends and support at ₹1340. The stock is performing well above its 200-day EMA levels, signaling a sustainable uptrend. RSI levels at 48.09 suggest notable strength without excessive overbought conditions.
If Cipla surpasses its minor resistance at ₹1420, it could reach the target of ₹1520. Investors should monitor these levels closely to take advantage of potential opportunities.
UltraTech Cement: Buy at ₹9700.90, Target ₹10,530, Stop Loss ₹9,255
UltraTech Cement is trading around ₹9700.90 after bouncing back from a robust support zone at ₹9255. The stock has a potential upside with resistance near ₹10,000, which, if breached, could pave the way for the target of ₹10,530.
Investors may find entry points around ₹9560, a level that presents an attractive buying opportunity. With a positive trajectory indicated by RSI levels at 51.02, UltraTech Cement seems poised for further gains.
Conclusion
Bagadia’s recommendations present investors with a mix of opportunities across different sectors, including fast-moving consumer goods (ITC), pharmaceuticals (Cipla), and building materials (UltraTech Cement). Monitoring the target, stop-loss levels, and keeping an eye on market trends will help investors navigate these stocks effectively.
As always, exercise caution, conduct your research, and stay informed on market developments.
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FAQs
1. What is the recommended stop-loss for ITC stock?
- The stop-loss for ITC stock is set at ₹422. This is a strategic measure to protect your investment from excessive losses if the stock’s price falls.
2. How does the relative strength index (RSI) affect stock analysis?
- RSI is a momentum indicator that measures the strength and speed of price movements. An upward-trending RSI suggests positive momentum, while a high RSI can signal overbought conditions.
3. What are the potential risks in investing in UltraTech Cement?
- While UltraTech Cement has strong upside potential, market volatility and fluctuations in demand for building materials can affect stock performance. Stocks Prudent risk management, including setting stop-loss orders, is recommended.
4. How can I apply the buy-on-dips strategy?
- The buy-on-dips strategy involves purchasing stocks when their prices drop significantly. Look for established support levels to make strategic Stocks investments during these dips.
5. How do stock recommendations align with overall market trends?
- Bagadia’s recommendations consider current market trends and the performance of individual stocks within specific sectors. By aligning with broader market trends, investors can better position themselves for potential gains.
