Buy or sell stocks: Amid a highly volatile session, the Indian stock market finally ended higher on Friday. The Nifty 50 index broke out from the consolidation and finished 219 points higher at 24,768. The BSE Sensex surged 860 points and closed at 82,150, whereas the Nifty Bank index gained 414 points and ended at 53,630. Amongst the sectoral indices, Nifty FMCG, Consumer durables and Private Bank gained the most, while Nifty Metal, Media and Reality fell the most. NSE cash market volumes were lower by 6% as compared to yesterday. The Nifty Mid-cap and Small-cap indices underperformed as they fell by 0.05% and 0.30%, respectively, against a 0.89% rise in the Nifty. Declining shares outnumbered the advancing shares for the second day in a row as the advance-decline ratio stood at 0.85 on BSE.

Sumeet Bagadia’s stocks to buy next week

Sumeet Bagadia, Executive Director at Choice Broking, believes the Indian stock market mood has improved as the Nifty 50 index has closed above 24,700, giving a fresh technical breakout on a closing basis. The Choice Broking expert said the 50-stock index is looking set to touch 25,200 in the near term. Bagadia also said the frontline index has crucial support and is now 24,300.

Regarding shares to buy next week, Sumeet Bagadia recommended three stocks to buy on Monday: Bharti Airtel, DLF, and Kotak Mahindra Bank.

Sumeet Bagadia’s stock recommendations

1] Bharti Airtel: Buy at ₹1681.75, target ₹1780, stop loss ₹1620.

Bharti Airtel’s share is trading at ₹1681.75, showcasing a notable uptrend from the support levels around 1600, near its 20-day Exponential Moving Average (EMA). The stock’s positive momentum is further confirmed by its positioning above the short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels, reinforcing its technical resilience.

A significant breakthrough above the resistance at ₹1700, supported by robust volumes, underscores the stock’s strength, which also marks its all-time high. A breakout above this crucial resistance could set the stage for a rally towards the target of ₹1780 in the short term. Traders and investors who entered at lower levels are advised to safeguard their positions by trailing stop losses near ₹1620, aiming for the target of ₹1780 and beyond.

The momentum indicator, Relative Strength Index (RSI), is currently at 63.85 levels, indicating positive momentum in the stock. For those considering fresh investments, purchasing at the current market price (CMP) is a viable option, targeting ₹1780, with a stringent stop loss set at ₹1620 levels to manage risk effectively.

2] DLF: Buy at ₹870.85, target ₹930, stop loss ₹840.

DLF’s share price is currently trading at ₹870.85, which indicates a sharp reversal from recent lows, driven by renewed buying momentum and robust volumes. The stock’s positive momentum is further confirmed by its positioning above the short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels, reinforcing its technical resilience.

On Friday, DLF’s share price showed a moderate increase of 0.43%, closing at ₹870.85 with an intraday high of ₹872.95. This movement suggests a phase of mild gains, possibly reflecting market consolidation following its recent upward rally. The stock’s higher high and higher low formation further emphasizes the underlying bullish trend. The stock has found support at the EMA levels, with the 20-day moving average at ₹840 acting as the closest support. However, a decisive move above its recent resistance levels near ₹880, accompanied by substantial volumes, would signal continued bullish momentum, potentially approaching new swing highs. A breakout above this crucial resistance could set the stage for a rally towards the target of ₹930 in the short term.

The momentum indicator, Relative Strength Index (RSI), is currently at 63 levels, indicating positive momentum in the stock. For those considering fresh investments, purchasing at the current market price (CMP) is a viable option, targeting ₹930, with a stringent stop loss set at ₹840 levels to manage risk effectively.

3] Kotak Mahindra Bank: Buy at ₹1805.65, target ₹1900, stop loss ₹1740.

Kotak Mahindra Bank share has demonstrated remarkable strength and positive momentum in recent high-volume trading sessions, currently trading at ₹1805.65. The stock’s recent consolidation within the ₹1750 to ₹1800 range has laid the foundation for a potential upward movement, emphasized by a bullish, engulfing candlestick pattern on the daily charts.

Kotak Mahindra Bank share maintains a robust technical posture by comfortably holding its position above the crucial 20-day, 50-day, and 200-day Exponential Moving Averages (EMA), reflecting a solid base and signalling a positive trend. The Relative Strength Index (RSI), a pivotal momentum indicator, is rising and currently stands at 59 levels.

As Kotak Mahindra Bank’s share price gears up to confront the next target level at ₹1900, its ability to sustain itself above critical support levels during pullbacks suggests a strong technical setup. Employing trailing stop losses with a protective buffer near the significant support level of ₹1740 is a prudent risk management strategy for investors who entered the market at lower levels. In conclusion, the technical analysis paints a favourable picture of Kotak Mahindra Bank’s share, indicating the potential for further upward movement and instilling confidence among investors.

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.