Weekly Stock Market Update: Top Picks for Monday, 24 June 24

The Indian stock market saw the Sensex and the Nifty 50 close in the red on Friday, June 21. Despite this, the indices ended the week with modest gains. The Sensex climbed 0.3% and the Nifty 50 rose 0.2% over the week. While midcap stocks underperformed, smallcap stocks outshined with a 1.4% weekly jump.

During the week, the Sensex reached an all-time high of 77,851.63, and the Nifty 50 hit a new peak of 23,667.10 before facing some profit booking. Despite a positive medium-term outlook, a small bearish candle on the weekly charts and a double top formation on the intraday charts indicate potential weakness ahead.

Stock Recommendations for Monday – June 24

Sumeet Bagadia of Choice Broking recommends three stocks for Monday: Bharti Airtel, IndiGo, and Dr Reddy’s Laboratories.

Bharti Airtel (Previous close: ₹1,416.05 | Target price: ₹1,520 | Stop loss: ₹1,360 | Upside potential: 7%)

Bharti Airtel, a major player in the telecom industry, has shown resilience and a strong breakout above ₹1,405. The stock is trading above its 20, 50, and 200-day moving averages, indicating bullish momentum. With a minor resistance at ₹1,435, sustaining above this level could drive further gains. The RSI is at 58.11 and trending upwards, suggesting increased buying activity. Investors should monitor the stock for potential declines below ₹1,360, which could negate the positive outlook. Bagadia predicts a short-term target of ₹1,520 for Bharti Airtel.

InterGlobe Aviation (IndiGo) (Previous close: ₹4,310.15 | Target price: ₹4,600 | Stop loss: ₹4,180 | Upside potential: 7%)

IndiGo, trading at ₹4,310.15, has shown a strong recovery from its support level of ₹4,180. The stock has surpassed a minor resistance at ₹4,260 and is trading above its 20, 50, and 200-day EMA levels. With a minor resistance near ₹4,375, a breach could trigger significant upward movement towards ₹4,600. The RSI at 54.04 indicates growing bullish sentiment. Bagadia advises watching the ₹4,375 resistance level closely, with a breakout paving the way for further gains. Investors can consider buying at the current market price or on dips near ₹4,260, targeting ₹4,600 with a stop loss of ₹4,180.

Dr. Reddy’s Laboratories (Previous close: ₹6,011.45 | Target price: ₹6,380 | Stop loss: ₹5,800 | Upside potential: 6%)

Dr Reddy’s Laboratories, trading at ₹6,011.45, has shown significant strength with robust volumes. The stock is trading above its 20, 50, and 200-day EMA levels, indicating sustained strength. The RSI at 52.39 supports the bullish outlook. With strong support at ₹5,800, aligning with its 200-day EMA, the stock shows potential to move towards ₹6,380. Bagadia recommends buying at the current market price or on dips near ₹5,920, with a stop loss of ₹5,800.

Sumeet Bagadia’s recommendations for Bharti Airtel, IndiGo, and Dr Reddy’s Laboratories offer promising potential for gains. Investors should consider these stocks based on their robust technical indicators and favorable market positions. However, it’s essential to remain cautious and monitor key support and resistance levels closely to mitigate risks.