Buy or sell: Ganesh Dongre of Anand Rathi recommends three shares to buy after stock market holiday | Stock Market News

Buy or Sell: The Nifty Index ended the week at 23,519, holding firmly above the critical support level of 23,000. The Indian stock market closed with marginal gains, but investor sentiment remained subdued due to concerns surrounding U.S. economic indicators and trade policies.

Traders are cutting back risk ahead of next week’s tariff announcements, while keeping cash ready to pounce the moment opportunities arises, while anticipation of the U.S. Personal Consumption Expenditures (PCE) inflation data heightened uncertainty, potentially influencing Federal Reserve interest rate decisions later in the year.

This uncertainty led to cautious trading and widespread selling across sectors. The external pressure intensified a risk-off attitude among Indian investors, with IT and Auto sectors witnessing declines of up to 1%. Despite recent oversold conditions, Nifty found stability above 23,000, setting the stage for a potential rebound and inching closer to the 24,000 mark.

Technical Analysis

However, the sustainability of Nifty above the 200 EMA remains uncertain, posing challenges for investors and traders in the coming weeks. The market’s price action confirmed the earlier downward trend line at the 22,800-23,000 mark, now establishing a significant support level.

Looking ahead, global uncertainties and tariff-related news continue to keep traders cautious, with the market remaining alert for any sentiment shifts driven by external economic factors.

Weekly Trading Overview

The week began on a strong note with a gap-up opening on Monday, as Nifty tested resistance at 23,800. However, profit-booking emerged across major sectors, resulting in range-bound movement throughout the week. The index remained confined within the 23,300 to 24,000 range, reflecting a cautious market sentiment.

From a technical perspective, Nifty’s recent behavior suggests a stock-specific, positive-to-cautious approach in the near term. A decisive move above 23,800 could trigger a fresh wave of buying, potentially driving the index toward 24,500-24,600. Conversely, persistent profit-booking at 23,800 may lead to a decline toward the 23,000 mark. A close below 22,800 would signal a trend reversal, potentially turning the outlook bearish.

Bank Nifty Performance

The Bank Nifty surged above the 50,000-50,500 mark, driven by heavy short-covering in banking stocks. The index saw consistent buying interest across the banking and financial sectors, reflecting robust sentiment despite global uncertainties.

Key support for Bank Nifty stands at 50,300-50,500, aligning with the 200 EMA. A breach of this level could signal a shift in sentiment, potentially triggering further downside. Conversely, holding above this range could sustain the bullish momentum.

Conclusion

Outlook for the Upcoming Week Traders are advised to closely monitor global cues and the 23,800 resistance and 22,800 support for Nifty’s next directional move.

For Bank Nifty, maintaining above 50,300-50,500 will be crucial to sustaining upward momentum. A disciplined and vigilant approach is recommended in navigating the current market landscape.

Stocks to buy

Container Corporation of India (Concor): Buy at ₹385-390; Target at ₹415; Stop Loss at ₹375.

Natco Pharma Ltd (NATCOPHARM): Buy at ₹790-800; Target at ₹840; Stop Loss at ₹770.

Aurobindo Pharma Ltd (AUROPHARMA): Buy at ₹1,140-1,160; Target at ₹1,200; Stop Loss at ₹1,100.

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.