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The Indian stock market experienced a surge on Friday, ending a five-day losing streak. This positive performance followed a robust global market sentiment, pushing the Nifty 50 index to a new peak of 24,861, up by 428 points. The BSE Sensex also witnessed a significant jump, gaining 1,292 points to close at 81,332, while the Bank Nifty index ended 407 points higher at 51,295. This positive trend extended to the broader market, with the small-cap index rising by one percent and the mid-cap index showcasing an impressive 2.12 percent growth on the last trading day of the previous week.
Sumeet Bagadia, Executive Director at Choice Broking, expressed optimism about the Indian stock market's improved sentiment, highlighting the Nifty 50 index's closing above the 24,850 resistance level. He acknowledged the 25,000 level as the next hurdle for the index, while identifying the immediate support zone between 24,650 and 24,700. Bagadia forecasted a target of 25,400 for the Nifty 50 index if it successfully surpasses the 25,000 mark on a closing basis.
Bagadia presented his recommendations for three stocks to buy on Monday, July 29th: Cipla, Wipro, and Coal India. For Cipla, he suggested a buy entry point at ₹1575 with a target of ₹1720 and a stop loss at ₹1495. He highlighted the stock's recent all-time high, a double bottom pattern on the daily chart, and strong trading volumes as indicators of bullish momentum. Wipro, according to Bagadia, is in a long-term uptrend, with the recent correction finding support near the 0.618 Fibonacci retracement level. He recommends a buy at ₹524.80, targeting ₹580 with a stop loss at ₹499. The stock's position above its short-term (20-day) EMA further supports the bullish outlook. Lastly, Bagadia suggested buying Coal India at ₹509.85, aiming for a target of ₹560 with a stop loss at ₹483. The stock's consolidation range, robust trading volumes, and a potential breakout above ₹512 point towards an uptrend and a valid target of ₹560. He advises accumulating shares on dips for optimal entry.
Source: Buy or sell: Sumeet Bagadia recommends three stocks to buy on Monday — July 29