The Indian stock market benchmark indices Sensex and Nifty 50 ended with minor losses on Friday, dragged by profit-taking at higher levels after a sharp rally in the previous session. Easing India-Pakistan tensions and fading global concerns over US-China trade war, supported the domestic equity market for the week.
The Sensex dropped 200.15 points, or 0.24%, to close at 82,330.59, while the Nifty 50 settled 42.30 points, or 0.17%, lower at 25,019.80.
On the weekly front, the BSE benchmark gauge jumped 2,876.12 points, or 3.61%, and the Nifty 50 surged 1,011.8 points or 4.21%.
Sumeet Bagadia’s breakout stock recommendations
Sumeet Bagadia, Executive Director at Choice Broking, said that the Indian stock market sentiment remains positive as the Nifty 50 index has made a strong base around 25,000.
“The Nifty 50 index is set to touch 25,400 and 25,800 soon. One should maintain a stock-specific approach and look at those stocks that are looking strong on the technical chart,” Bagadia said.
Stocks to buy on Monday
Sumeet Bagadia recommends three shares to buy on Monday, May 19 — Indian Railway Finance Corporation (IRFC), SJVN and NBCC (India) shares.
IRFC | Buy | Target Price: ₹148 | Stop Loss: ₹133
IRFC shares formed a breakout candle, accompanied by a long-bodied green candle and the highest single-day volume in several weeks, reinforcing the strength of the move and confirming a potential trend reversal, this could lead to a new upward trend, pushing the IRFC stock towards ₹148 and higher, Sumeet Bagadia said.
The momentum indicator, Relative Strength Index (RSI), is currently at 66.33 levels, indicating positive momentum in the IRFC stock. If IRFC share price holds above the Volume Weighted Average Price (VWAP) of approximately ₹136, a recovery can be anticipated in the coming sessions, he added.
According to Bagadia, IRFC share price is showing signs of recovery in the short term, especially if it can break above the ₹140 level. Investors can look for buying opportunities on dips while keeping an eye on stop loss at ₹133 and IRFC share price target of ₹148 levels for further movement.
SJVN | Buy | Target Price: ₹111 | Stop Loss: ₹100
SJVN share price’s up move of 6% on Friday suggests sustained buying interest, with the stock potentially entering a sideways to bullish. The stock’s higher high and higher low formation further emphasizes the underlying bullish trend. A significant breakthrough above the resistance at ₹105.5, supported by robust volumes, underscores the SJVN share’s strength which also marks its recent swing high of ₹111, Bagadia said.
From a technical standpoint, the resistance at ₹100 – ₹101 has now turned into a support zone. Traders and investors who entered at lower levels are advised to safeguard their positions by trailing stop losses near ₹100, aiming for the target of ₹111 and beyond, he added.
The momentum indicator, Relative Strength Index (RSI), is currently at 65.89 levels, indicating positive momentum in the SJVN stock. For those considering fresh investments, Bagadia recommends purchasing SJVN shares at the current market price (CMP), for a target price of ₹111, with a stringent stop loss set at ₹100 levels to manage risk effectively.
NBCC | Buy | Target Price: ₹119 | Stop Loss: ₹107
NBCC share price daily chart analysis offers a favorable view for the following coming days ahead, indicating a sustainable upside bounce this week. A sustainable move above the hurdle has already led to a decisive upside breakout, and the NBCC India stock is now attempting to reach the next target of ₹119, potentially driving a sharp positive impact on the stock price, the Choice Broking analyst said.
Investors, especially those who entered at lower levels, could consider a prudent approach by booking partial profits at the current market price (CMP). Simultaneously, trailing stop-loss orders near ₹107 levels can safeguard profits and manage risks effectively, he added.
For fresh investments, Bagadia suggests a disciplined strategy, which involves waiting for potential dips, considering entry points near ₹109 levels. Implementing a strict stop-loss at ₹107 levels offers a risk management mechanism, ensuring protection against adverse market movements.
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 making any investment decisions.