Bagadia has singled out three stocks that investors should keep an eye on: Tech Mahindra Ltd, UltraTech Cement Ltd, and Dr Reddy’s Laboratories Ltd. These recommendations come at a time when the domestic benchmark indices, Sensex and Nifty 50, have closed at new highs, suggesting a buoyant market mood.
Tech Mahindra Ltd has emerged as a strong contender, demonstrating resilience and breaking out above the 1,320 level. The stock, currently trading at 1,377.60 per share, has surpassed key moving averages, signalling bullish momentum.
RSI stands at 66.45 and is trending upwards, reflecting increased buying activity. Bagadia notes that if Tech Mahindra sustains above the minor resistance at 1,400, it could trigger further gains, with a short-term target of 1,490. Investors are advised to remain cautious if the stock dips below 1,320, as this could negate the positive outlook.
UltraTech Cement Ltd is another stock Bagadia recommends for Monday. Trading at 10,463.15, it has shown a robust recovery from the support level of 9,960. This level aligns closely with its 20 and 50-day EMA, reinforcing the stock’s strength. The RSI for UltraTech Cement is currently at 61.72, trending upwards, indicating growing bullish sentiment. The stock faces a minor resistance at 10,530, and a breach of this level could pave the way for significant upward movement towards 11,300. Bagadia suggests buying UltraTech Cement at its current price and adding on dips near 10,200, with a stop loss at 9,960.
Dr Reddy’s Laboratories Ltd also makes the list, with its stock currently trading at 6,061.30. The stock has broken out of a falling trend line with robust volumes, indicating bullish momentum. It is now trading above its key moving averages, including the 20, 50, and 200-day EMA, showing sustained strength. The RSI for Dr Reddy’s Laboratories is at 57.46, trending upwards, supporting the bullish outlook. With a strong support level at 5,800, aligned with its 200-day EMA, the stock shows potential to move towards a target of 6,410. Bagadia recommends buying at the current level and adding on dips near 5,960, with a stop loss at 5,800.
This analysis comes in the backdrop of a positive week for the market, with the Sensex and Nifty 50 closing at new highs. The Nifty 50 ended up 2.05% at 23,290.15 points, while the S&P BSE Sensex rose 2.16% to 76,693.36. The indices recouped all election-related losses, reflecting greater economic growth prospects.
The Reserve Bank of India has raised its GDP growth forecast for the current fiscal year to 7.2%, adding to the positive sentiment. Additionally, the US economy added more jobs than projected in May, and annual wage growth increased, highlighting the labor market’s durability and diminishing the chance that the Federal Reserve will begin rate decreases in September.
In the coming week, key areas to watch include the US Fed interest rate decision, the rupee’s movement against the dollar, crude oil prices, and commodity prices. Investments by foreign portfolio investors and domestic institutional investors will also remain under close observation.
