Buy or sell: Ganesh Dongre of Anand Rathi recommends three stocks to buy on Monday – 3 February | Stock Market News

Buy or sell: This week, the Nifty index witnessed a remarkable rally of nearly 1,000 points, surging from 22,700 to 23,700. The primary catalyst behind this uptrend was the Union Budget 2025, which focused on boosting consumption in the economy.

The budget introduced several favorable measures for middle-income salaried individuals, increasing disposable income and thereby benefiting consumption-related stocks such as Trent, D-Mart, Zomato, and others. As a result, market sentiment improved, and the indices reflected this optimism.

From a technical perspective, key levels to watch include 23,600 and 24,200, with the 200-day moving average (DMA) positioned at 24,100. Notably, the Nifty is still trading within a falling channel pattern that originated in September 2024, with a critical resistance level at 23,700. A weekly and monthly close above this threshold is necessary to bolster investor confidence.

The week commenced with a gap-down opening below 23,000, but the index quickly recovered, driven by short-covering ahead of the monthly expiry and the budget announcement. Nifty tested resistance at 23,300 and 23,600, forming a daily higher-low pattern.

Looking ahead, if Nifty surpasses the 23,700 mark, the rally could extend to the 24,100-24,200 zone, which aligns with the 200 DMA and the previous month’s high. Conversely, a close below 23,300 with a daily lower-high pattern could drag the index down to the next support levels at 22,500–22,800. Traders are advised to remain cautious and closely monitor these critical resistance levels. The major event for the next week will be RBI Monetary policy announcement.

Bank Nifty Performance

The Bank Nifty Index started the week on a strong note, forming a weekly double-bottom pattern. This technical setup helped the index breach its previous week’s high of 49,600 and attempt a move towards the key resistance level of 50,500. However, it failed to sustain above this resistance zone.

On a weekly basis, the index remained range-bound between 47,500 and 50,000. The formation of a consistent higher-low closing pattern suggests a potential for further upside. Immediate support lies at 48,000, while resistance for the upcoming week stands at 50,500.

Conclusion

Both Nifty and Bank Nifty closed below their respective monthly resistance zones. The 24,250 level for Nifty and the 50,500 level for Bank Nifty remain crucial for initiating fresh long positions. A sustained close below these levels could signal increased downside risk. Investors and traders should exercise caution and closely monitor these pivotal levels to gauge future market direction.

Weekly Stocks

Buy Trent at ₹6190; Stop Loss at ₹5800; Target Price of ₹6500.

Buy VBL at ₹562; Stop Loss at ₹535; Target Price of ₹595.

Buy SBI at ₹766; Stop Loss at ₹745; Target Price of ₹790.

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.