Buy or sell: Ganesh Dongre recommends three stocks to buy on Monday — December 2 | Stock Market News

Buy or Sell: Last week, as anticipated, with the monthly expiry approaching, both the Nifty and Bank Nifty indices were in oversold conditions. This created potential for a significant rebound, which materialized as both indices saw notable upward movement toward their respective resistance levels.

The Nifty Index broke through the 24,000 mark, suggesting that the bullish trend could continue toward the 24,500–24,600 resistance zone. The 24,500 mark was briefly tested during the week, indicating the market’s strength. The index traded within a tight range of 24,000–24,500, showing consistent bullish momentum across various sectors.

Going into the next week, the market sentiment remains positive, especially ahead of the RBI’s interest rate decision, expected by the weekend. 

Weekly Trading Overview

The week started with a gap-up opening, pushing the Nifty to test the 24,500 resistance zone. However, profit booking dominated the market as the week progressed, causing the index to retreat toward the 24,000 support level after briefly reaching the 24,500 high.

The critical near-term support now lies at 23,800, aligning with the previous week high. If the index falls below the 23,800–23,900 range, further correction could see the Nifty testing the 23,300–23,500 zone, aligning with the 200-day EMA.

On the other hand, holding above 23,800 would suggest a fresh rally toward the 25,000 mark, representing a 50% retracement of the previous fall. The key support for the coming week is at 24,300 (near the 200-day EMA), with resistance at 24,800 (near the 100-day EMA). Market participants will likely focus on the RBI’s interest rate decision to guide further direction. 

Bank Nifty Performance

The Bank Nifty index performed well, closing the week at 52,000, up by 2%. It opened with a gap-up on Monday, followed by a steady buying pattern that pushed it toward the 53,000 resistance zone, but it ultimately closed at 52,200.

In the coming days, if the Bank Nifty maintains a daily close above the 51,800 level, it could see upward movement toward the 52,800–53,000 resistance zone, which corresponds to the 61.8% retracement of the total fall. Key support remains at 50,500, and caution is advised if the index closes below 52,000, which could signal potential downside risks. 

Conclusion

Overall, both indices are poised to maintain their bullish momentum, provided they sustain above key support levels and market sentiment remains positive ahead of upcoming economic announcements. 

Stocks to buy on Monday 

1. Indian Hotels Ltd. (INDHOTEL): Buy at ₹788-793 | Target Price at ₹825 | Stop Loss at ₹770. 

2. Canara Bank Ltd. (CANBK): Buy at ₹102 | Target Price at ₹108 | Stop Loss at ₹97. 

3. Life Insurance Corporation of India Ltd. (LICI): Buy at ₹975-985 | Target Price at ₹1,025 | Stop Loss at ₹950. 

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.