Buy or sell: Ganesh Dongre of Anand Rathi recommends three stocks to buy on Monday – 30 December | Stock Market News

Buy or sell: The domestic benchmark indices succeeded in maintaining the gains made during the morning session until the close on Friday. The Sensex finished at 78,699.07 points, an increase of 226.59 points or 0.29%, while the Nifty 50 ended at 23,813.40 points, rising by 63.20 points or 0.27%.

As of 2024, both the Sensex and Nifty 50 have seen an increase of approximately 9-10%, with only a few sessions left in the year. In 2023, the Sensex and Nifty 50 experienced a rise of 16-17% cumulatively. In contrast, in 2022, both indices saw a modest gain of only 3%.

Some challenges this year, according to analysts, included weak GDP growth, outflows of foreign funds, increasing food prices, and sluggish consumption, which kept many investors hesitant.

Foreign portfolio investors (FPIs) have become net sellers in the Indian stock market for the second consecutive month in November. However, in December, they have shifted to being net buyers. According to data provided by the National Securities Depository Ltd, they purchased stocks worth ₹16,675 crore in December 2024, according to reports.

Vinod Nair, Head of Research at Geojit Financial Services, pointed out that significant market focus is anticipated on the forthcoming Q3 results, which will be pivotal in determining the market’s direction. Investors are expected to adjust their portfolios in line with pre-budget expectations. Moreover, important data points such as the PMI figures for India, the US, and China, along with US jobless claims, will affect investor sentiment. The auto sector is expected to attract attention, bolstered by predictions of increased volumes in December and favorable valuation conditions.

Weekly Market Recap

The Nifty 50 index exhibited a constrained movement throughout the week, fluctuating within the 23,500–24,000 range. The combination of monthly expiry, the holiday season, and Christmas Eve celebrations subdued trading activity, yet short covering toward the week’s end allowed the index to post a modest 1% gain.

The week commenced with sideways movement, signaling a lack of strong directional momentum. However, as short covering gained traction, the index approached the key resistance zone at 24,000. On the technical front, the Nifty formed a bullish pattern, taking firm support at the 200-day moving average (DMA) around the 23,300 level.

Looking ahead to the January series, the bullish trend’s continuation hinges on the index holding support above 23,300 and decisively sustaining levels beyond 24,000. If achieved, this could open pathways to the next resistance points at 24,500 and 24,700. The US presidential transition in mid-January may inject some market volatility, but optimism surrounding President-elect Donald Trump’s anticipated policies could bolster a positive market sentiment in the short term.

Bank Nifty Performance

Similarly, the Bank Nifty index traded within a narrow range, fluctuating between 50,500 and 52,000 levels. Despite this limited range, the Bank Nifty has shown resilience, closing above the critical support level of 50,000, which marked the previous week’s low. For continued bullish momentum, it’s crucial for the index to stay above the 52,000 mark. If it holds, the next resistance could be around 53,000 in the coming week.

Conclusion

Both Nifty 50 and Bank Nifty ended the week above their respective monthly support zones, signaling strength and resilience amid market volatility. This points to an overall bullish sentiment. Key levels to watch are 23,300 for Nifty and 50,500 for Bank Nifty, as these will be pivotal in determining future price movements. Investors should stay vigilant around these levels for any potential shifts in market direction.

Weekly stocks

BUY Tata Chemicals Ltd at ₹1,050; Stop Loss at ₹1,010; Target Price of ₹1,150.

BUY HDFC Bank Ltd at ₹1,800; Stop Loss at ₹1,760; Target Price of ₹1,860.

BUY Tata Motors Ltd at ₹750; Stop Loss at ₹730; Target Price of ₹795.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.