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Stock Analysis: BHEL to Bajaj Finserv — Sumeet Bagadia Recommends Three Stocks to Buy on Monday, April 8

The Indian stock markets concluded the previous week on a positive note, buoyed by robust macroeconomic indicators such as PMI numbers and record GST collections. Investors eagerly anticipate the Q4 results of listed companies, anticipating satisfactory growth for the quarter ending March 2024.

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The Reserve Bank of India (RBI) reinforced the optimism for future growth by maintaining key rates unchanged in its recent monetary policy meeting. However, market volatility is expected to persist throughout April, with investors closely monitoring developments regarding the potential US Fed rate cut. The US Fed meeting is scheduled from April 30th to May 1st, 2024.

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Stock Market Analysis:

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Sumeet Bagadia, Executive Director at Choice Broking, assesses the current market sentiment, indicating that the Nifty 50 index is trading within a range of 22,250 to 22,550. Bagadia suggests that a clear bullish or bearish trend could emerge upon the breakout of either side of this range. Additionally, Bagadia notes the outperformance of the Bank Nifty index and anticipates a highly bullish outlook once it surpasses its previous peak zone, situated around the 48,150 to 48,200 range.

Stock Recommendations:

Bagadia recommends three stocks for short-term investors:

Bajaj Finserv: Buy at ₹1680, target ₹1785, stop loss ₹1625.

Analysis: Bajaj Finserv’s stock is currently trading at ₹1680 and exhibits a pattern of higher highs and higher lows, indicating strong bullish momentum. A potential breakout above ₹1680 could propel the stock towards the ₹1785 level, with immediate resistance seen at ₹1725. Key support is observed at ₹1625. Moreover, Bajaj Finserv’s share price is trading above crucial Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs, signifying a robust bullish trend. The Relative Strength Index (RSI) stands at 65, showing upward momentum, while the Stochastic Relative Strength Index (Stoch RSI) supports this bullish sentiment with a positive crossover. These technical indicators collectively suggest the potential for Bajaj Finserv’s share price to reach the ₹1785 target in the short term.

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