DLF, Bharti, Kotak Mahindra Bank; three stocks to buy on Monday, 16 December recommends expert.

Sumeet Bagadia of Choice Broking believes the mood of the Indian stock market has improved, as evidenced by the Nifty 50 index closing above 24,700, signaling a fresh technical breakout on a closing basis.

During a highly volatile session, the Indian stock market ended higher on Friday. The Nifty 50 index broke out from consolidation, finishing 219 points higher at 24,768. The BSE Sensex surged 860 points to close at 82,150, while the Nifty Bank index gained 414 points, ending at 53,630. Sector-wise, Nifty FMCG, Consumer Durables, and Private Banks saw the most gains, whereas Nifty Metal, Media, and Reality experienced declines. NSE cash market volumes were 6% lower compared to the previous day. The Nifty Mid-cap and Small-cap indices underperformed, falling by 0.05% and 0.30%, respectively, against a 0.89% rise in the Nifty. Declining shares outnumbered advancing shares for the second consecutive day, with an advance-decline ratio of 0.85 on BSE.

Sumeet Bagadia's Stock Recommendations for Next Week:

1. Bharti Airtel (Buy at ₹1681.75, Target ₹1780, Stop Loss ₹1620)

Bharti Airtel shares are trading at ₹1681.75, showing a significant uptrend from support levels around ₹1600, near its 20-day Exponential Moving Average (EMA). The stock's positive momentum is confirmed by its positioning above the short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels. A breakthrough above the resistance at ₹1700, supported by strong volumes, indicates the stock's strength, marking its all-time high. This could lead to a rally towards the target of ₹1780. The Relative Strength Index (RSI) is at 63.85, indicating positive momentum. Investors can consider purchasing at the current market price, targeting ₹1780 with a stop loss at ₹1620 to manage risk.

2. DLF (Buy at ₹870.85, Target ₹930, Stop Loss ₹840)

DLF shares are trading at ₹870.85, showing a sharp reversal from recent lows, driven by renewed buying momentum and robust volumes. The stock's positive momentum is confirmed by its positioning above the short-term (20-day), medium-term (50-day), and long-term (200-day) EMA levels. On Friday, DLF closed at ₹870.85 with an intraday high of ₹872.95. The stock's higher high and higher low formation emphasize the underlying bullish trend. A decisive move above its recent resistance levels near ₹880, with substantial volumes, would signal continued bullish momentum, potentially approaching the target of ₹930. The RSI is at 63, indicating positive momentum. Investors can consider purchasing at the current market price, targeting ₹930 with a stop loss at ₹840.

3. Kotak Mahindra Bank (Buy at ₹1805.65, Target ₹1900, Stop Loss ₹1740)

Kotak Mahindra Bank shares have shown remarkable strength and positive momentum, trading at ₹1805.65. The stock's recent consolidation within the ₹1750 to ₹1800 range has set the stage for potential upward movement, emphasized by a bullish, engulfing candlestick pattern on the daily charts. The stock comfortably holds its position above the crucial 20-day, 50-day, and 200-day EMAs, reflecting a solid base and positive trend. The RSI, a key momentum indicator, is rising and currently stands at 59. Kotak Mahindra Bank's share price is gearing up to reach the target level of ₹1900, with strong technical support. Investors should use trailing stop losses near the significant support level of ₹1740 as a prudent risk management strategy. The technical analysis indicates potential for further upward movement, instilling confidence among investors.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.