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Sat. Jul 20th, 2024

Buy or Sell: Sumeet Bagadia recommends buying three stocks on Monday, May 27

By Vaseline May26,2024

Buy or sell shares: Despite ending the week flat, domestic benchmark indices Nifty 50 and Sensex had their best week since early February on the back of gains in the metals and financial sectors.

During the session, the Sensex hit a new all-time high of 75,636.50 but could not sustain its gains and ended the day 8 points lower at 75,410.39. The Nifty 50 touched a new all-time high of 23,026.40 during the session but ended the day 11 points behind at 22,957.10.

According to Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities, the Nifty 50’s 23,000 milestone is something to celebrate, and the positive takeaway was that the benchmark ended a choppy session just below the dotted lines. dismissing the extremely weak signals from Wall Street.

Buyers are seen with confidence, amid investors hoping or expecting a continuation of the current regime in the general election, and oil prices fall to $76 per barrel, Tapse said.

Also read: Stock market today: Sensex and Nifty 50 end close after posting profits at record levels

Shares to buy on Monday, May 27

In terms of stocks to buy on Monday, Sumeet Bagadia recommended three stocks to buy on Monday: Larsen & Toubro (L&T), Axis Bank and Bharti Airtel Ltd.

Larsen & Toubro (L&T)

L&T is currently trading at 3,625, showing a strong reversal from the low. The price action has formed a strong bullish candle with substantial volume, indicating a bullish reversal after a correction from above. There is potential for LT to achieve a target price of € 3,860 in the short term, making it advisable to consider a purchase at a CMP of 3,625.90 and adding nearby dips 3,525 levels.

Additionally, LT is above the major exponential moving averages (EMAs), including the 20-day, 50-day, and 200-day EMAs. This alignment above these crucial EMAs reinforces the bullish outlook, suggesting the possibility of continued upward price movement.

To manage risk effectively, it is recommended to implement a stop-loss (SL). 3,475. This precaution is crucial to protect your investment in the event of an unexpected market reversal.

In summary, given the technical analysis and current market conditions, LT appears to be an attractive buying opportunity for CMP 3,625.90; it can also be added to nearby dips 3,525 for those aspiring to a Price target 3,860 with a stop loss of 3,475.

Also read: SEBI introduces new regulations for sharing real-time price data with third parties

Axis Bank Ltd

Axis Bank is showing promising bullish signals in its recent price movements forming a rounded bottom pattern. The stock has shown resilience by recovering from a support level of 1,125, which closely matches the 20-day Exponential Moving Average (EMA), indicating strong investor interest at this point. Currently trading around 1,174 levels, Axis Bank has successfully recovered from the support and surpassed the crucial resistance 1,150. This breakout often signals the start of a bullish trend, indicating potential for further upward movement.

The stock is trading above its major moving averages, reinforcing its strength in current market conditions. This alignment with the moving averages indicates continued positive momentum. A small resistance is noticeable at the 1,185 level. If Axis Bank manages to overcome this resistance, it is likely to continue its upward trajectory.

Surpassing the The resistance level at 1,185 would be an important milestone that could potentially drive the stock towards its target 1,270. Investors should keep a close eye on this level as a successful breakout could indicate continued bullish momentum. Overall, the technical indicators suggest that Axis Bank is well positioned for further gains, making it an attractive prospect for investors looking to capitalize on the uptrend.

Based on the above analysis, we expect Axis Bank to price higher 1,270 and that is why we recommend buying Axis Bank from CMP or 1,174, it can also be added in nearby dips 1,150 with a stop loss of 1,105.

Bharti Airtel Ltd

Bharti Airtel is currently trading at 1,388.50 levels, reflecting strong bullish momentum. The stock recently broke above 1,360 level with significant trading volumes, indicating robust buying interest and strength in the stock. This breakout is a major technical event, signaling the potential for further upward movement.

On the other hand, the stock has a strong support level nearby 1,330, which closely matches the 20-day exponential moving average (EMA). This level serves as a critical support zone and provides a cushion against possible short-term pullbacks. Furthermore, Bharti Airtel is trading above its major moving averages including the short-term (20 days), medium-term (50 days) and long-term (200 days) EMA levels, further supporting the overall bullish trend and positive sentiment of the share underlined. on the market.

Considering the current technical situation, Bharti Airtel has the potential to rise higher, aiming to: 1,490 as projected by the Fibonacci extension levels. The strong breakout, combined with the supportive moving averages, indicates a favorable outlook for the stock. Investors holding the stock should consider maintaining their positions, with a trailing stop loss on 1,330 to protect against any downside risks. Overall, Bharti Airtel appears well positioned for further gains, making it an attractive opportunity for further investment.

Based on the above analysis, we recommend buying Bharti Airtel from CMP or 1,388.50, it can also be added on nearby dips 1,350 with a stop loss of 1,330 for the purpose of 1,490.

Also read: Gold Price Today: Yellow Metal Undergoes Correction; The short- and long-term prospects remain positive

Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not of Mint. We advise investors to consult certified experts before making investment decisions.

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