Buy or sell: Ganesh Dongre recommends three stocks to buy on Monday — December 9 | Stock Market News

Buy or Sell: The Indian stock market benchmark indices, Sensex and Nifty 50, rallied over 2% each last week, posting their largest weekly gains in six months. The domestic equity market displayed notable activity following the Reserve Bank of India (RBI)’s monetary policy decision.

The RBI’s Monetary Policy Committee (MPC) led by Governor Shaktikanta Das, chose to keep the repo rate unchanged at 6.5%, signaling a cautious approach amidst ongoing economic challenges. The central bank also reduced the Cash Reserve Ratio (CRR) by 50 basis points to 4%, aiming to inject liquidity into the system.

At the same time, the RBI revised its GDP growth forecast for 2024-25 downward to 6.6% from an earlier projection of 7.2%, underscoring the headwinds facing the economy. While the RBI maintained a ‘Neutral’ stance, its focus on aligning inflation with its target while supporting growth is clear. This comes after India’s inflation surged to 6.2% in October, breaching the RBI’s tolerance limit, and GDP growth slowed to 5.4% for the July-September quarter.

Technically, the Nifty 50 index is showing strength. The index had a significant bounce last week, approaching the 25,000 mark, after previously bouncing to the 24,600 level. Throughout the week, it traded within a range of 24,000 – 25,000, demonstrating robust performance across sectors.

Weekly Trading Overview

The Nifty 50 index opened the week with a gap-up and by the week’s end tested the 24,600 and 25,000 resistance zones. The near-term support for Nifty stands at 24,000 and 24,500, levels that align with the highest open interest (OI) on the put option side, indicating strong support. For the upcoming week, resistance levels are marked at 25,000-25,300, The range for the week is expected to be between 24,300 and 25,300, and any breakout beyond these levels may signal a fresh trend.

Bank Nifty Performance

The Bank Nifty index posted strong performance, closing the week at the 53,500 level, reflecting a 2.5% gain. After opening with a gap-up, the index experienced consistent buying throughout the week, testing resistance levels at 53,000 and 54,000. For the upcoming days, support for Bank Nifty is seen at the 52,500 level, while resistance remains at the 54,000 mark.

Conclusion

Both the Nifty 50 and Bank Nifty indices have managed to close above their respective monthly support zones, despite initial market volatility, maintaining a generally bullish bias. Investors are advised to closely monitor key support and resistance levels as they evaluate trading opportunities in the forthcoming sessions.

Stocks to buy on Monday:

1. Bharat Dynamics: Buy at ₹1,200 – 1,220 | Target Price: ₹1,285 | Stop Loss: ₹1,140

2. LIC India: Buy at ₹980 – 985 | Target Price: ₹1,050 | Stop Loss: ₹955

3. Axis Bank: Buy at ₹1,180 – 1,190 | Target Price: ₹1,240 | Stop Loss: ₹1,155

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.