Purchase or sell? Sumeet Bagadia suggests three stocks for Monday, May 13.
Invest in stocks: Following five straight sessions of losses, the key indices of the Indian stock market, the Sensex and Nifty 50, concluded Friday’s trading session higher. The frontline indices had a 2% loss for the week ending May 10, but the larger midcap and smallcap indices saw a deeper selloff, falling 3% and 4%, respectively. The Bank Nifty index finished the week at 47,421 after falling by about 3% as well.
Monday stocks to purchase
Choice Broking’s Executive Director Sumeet Bagadia has suggested three stocks to purchase on Monday that, in his opinion, are technically positioned for a respectable increase. Zomato, Bharti Airtel, and Eicher Motors are among the stocks on our purchase list.
The stock may rise to the target of ₹4,930 and higher in accordance with the Fib Extension, although a slight resistance at ₹4,708 levels could act as a barrier. The bullish candle formation, the calculated location above significant EMAs, and the RSI showing plenty of vigour for upward momentum all support this prediction.
Zomato | Purchase | Optimal Cost: ₹215
Zomato’s recent price movement has shown remarkable power, as evidenced by a noteworthy breach over the resistance level at ₹201. This breakout points to a bullish attitude and the possibility of more rising movement. In addition, the stock is presently trading at record highs, indicating the strong momentum and investor interest in it.
Zomato is trading above important moving averages, such as the 20-day, 50-day, and 200-day exponential moving averages (EMA), which supports its positive view. Furthermore, the stock has found strong support close to its 20-day moving average (₹192), which strengthens its bullish inclination. Relative Strength Index (RSI), a momentum indicator, is likewise showing strength. With a level of 65.55, it indicates positive momentum in the stock.
In light of these technical aspects, Zomato seems to be in a good position to experience further growth. With a medium-term target price of ₹215, we advise investing in Zomato at the CMP of ₹201.30, while it can also be added during falls down to ₹196. It will be deemed invalid for our analysis if the price closes below ₹192.
Bharti Airtel: Buy | Stop Loss: ₹1,270 | TP: ₹1,350
In the most recent price action, Bharti Airtel has shown resiliency by recovering from the support level at ₹1,270, which also happens to be its 20-Day Exponential Moving Average (EMA). This rebound supports the stock’s positive trend and indicates fresh buying interest at lower levels.
Moreover, Bharti Airtel is presently trading above all significant moving averages, which comprise the 20-day, 50-day, and 200-day EMAs for the short, medium, and long terms. This supports the optimistic outlook for the stock and points to a robust underlying trend. Relative Strength Index (RSI), a momentum indicator, has also increased and is now at 58.47. This underscores the optimistic view for the company and points to an improvement in bullish momentum.