Market Context: Indian stock indices hit new highs, with the Nifty 50 reaching its best winning streak since its inception in 1996. The Nifty 50 rose 83 points to 25,235, the BSE Sensex increased by 231 points to 82,365, and the Nifty Bank index climbed 198 points to 51,351. The broader market also saw significant gains with increased trading volumes and a favorable advance-decline ratio.
Sumeet Bagadia, Executive Director at Choice Broking, recommends the following three stocks to buy today:
Dr Reddy’s Laboratories (₹7031.35)
Target: ₹7410
Stop Loss: ₹6780
Analysis: Dr Reddy’s Laboratories is showing strong bullish momentum, trading above its short-term, medium-term, and long-term exponential moving averages (EMAs). The stock is positioned in a solid uptrend with increased trading volumes. A break above the minor resistance at ₹7,065 could push the stock towards ₹7,410.
Godrej Consumer Products (₹1481.20)
Target: ₹1600
Stop Loss: ₹1425
Analysis: The stock has recently rebounded from a support level of ₹1425 and is trading above all key EMAs, indicating strength. The Relative Strength Index (RSI) is at 59.32, suggesting balanced market sentiment. If it breaks the minor resistance at ₹1520, it could move towards ₹1,600.
Pidilite Industries (₹3123.30)
Target: ₹3280
Stop Loss: ₹3050
Analysis: Pidilite Industries has bounced back from a support level of ₹3,050 and is trading above its critical EMAs, showing strength. The RSI is at 53.37, indicating bullish momentum. A close above the resistance at ₹3,140 could lead to a target of ₹3,280.
Summary: Bagadia’s recommendations focus on stocks with strong bullish indicators and solid support levels. Investors are advised to buy Dr Reddy’s Laboratories, Godrej Consumer Products, and Pidilite Industries at the specified entry points with the provided targets and stop losses.
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