Buy or sell: Ganesh Dongre of Anand Rathi recommends three stocks to buy on Monday – 17 February | Stock Market News
Source: Live Mint
Buy or sell: The Indian stock market witnessed a downward trend this past week. In the last month, Foreign Institutional Investors (FII) were net sellers, offloading shares worth Rs. 87,000 crores. This month, FIIs have already sold shares worth Rs. 30,000 crores, a significant figure that has added to market nervousness.
Additionally, the recent U.S. CPI data revealed that inflation rose to 3% for the first time since June, raising concerns that the Federal Reserve might delay interest rate reductions until inflation cools off again. This uncertainty has made market participants more cautious, as the current trajectory suggests that the central bank may remain on the sidelines for the remainder of the year.
Weekly Trading View
Technically, as mentioned in the previous weekly article, the last three trading sessions formed a daily lower-high closing pattern, which is inherently bearish. The Nifty index was unable to break above the 23,700-resistance mark and subsequently slipped below the support zones of 23,300 and 23,000, re-entering the 22,700-22,800 support trajectory. While there was a notable bounce last week, bringing the index close to the 24,000 mark, it failed to sustain a weekly close above the 23,000 level, reinforcing the bearish sentiment.
Daily candle patterns continue to show lower lows, signaling ongoing weakness. Until the Nifty decisively closes above the 23,600 mark on a weekly basis, traders should exercise caution on the buy side. According to options data, the current Open Interest (OI) stands at 0.70, indicating oversold conditions. For the upcoming week, the index is expected to trade within the 22,400 to 23,500 range, with key support at 22,400 and resistance at 23,600.
Bank Nifty Performance
The Bank Nifty index also witnessed significant profit booking, tumbling by nearly 1,500 points during the week and closing at the 49,000 level, reflecting a 2% decline. After starting the week on a positive note, the index faced persistent selling pressure. Looking ahead, Bank Nifty has crucial support at 47,500 and resistance at 50,500.
Conclusion
Both Nifty and Bank Nifty have closed below their respective monthly resistance zones. For Nifty, the 24,250 level, and for Bank Nifty, the 50,500 level, remain critical thresholds for initiating fresh long positions. A sustained close below these levels could increase the risk of further downside. Traders and investors should remain vigilant and monitor these key levels closely to better navigate the market’s direction.
Weekly Stocks
Buy Bharti Airtel at ₹1710-1720; Stop Loss at ₹1670; Target Price of ₹1765.
Buy ICICI Bank at ₹1250-1260; Stop Loss at ₹1230; Target Price of ₹1285.
Buy HCL Tech at ₹1710-1720; Stop Loss at ₹1670; Target Price of ₹1750.
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.
