Buy or sell: Ganesh Dongre of Anand Rathi recommends three stocks to buy on Monday – 27 January | Stock Market News
Source: Live Mint
Buy or sell: The Nifty Index exhibited a constrained movement throughout the week, fluctuating within the 23,000–23,500 range. However, the lack of a decisive breakout above the 23,600 level led the index to retest its key support zone of 23,000. The week concluded at this emotional support level, signalling potential weakness soon.
The week commenced with a gap-up opening above 23,000, with the index testing resistance at 23,500. However, its inability to sustain a close above this resistance level, with the formation of a daily lower-high pattern and consistent selling pressure, forced the index to close at 23,000.
As the January series monthly expiry approaches, a sustained bullish trend will require the index to close above the critical 23,600 mark. Such a move could pave the way toward the 24,000–24,200 resistance zone, marking the monthly high. Conversely, a close below 23,000 may pull the index down to the next support levels at 22,500–22,800. Traders must remain cautious and closely monitor upward movements and closing patterns in the coming days.
Bank Nifty Performance
The Bank Nifty Index began the week on a strong note, approaching its weekly high of 50,000. However, it failed to breach the resistance zone at 50,500, coinciding with the previous week’s low. The inability to trade above the 51,000 markand a close below the 50,500 support level reinforced signs of weakness. Consistent selling pressure pushed the index further toward its support zone of 48,000.
On a weekly basis, the Bank Nifty traded within a 48,500–50,000 range. Forming a consistent lower-low closing pattern indicates a potential for further downside. Immediate support for the index lies at 48,000, while resistance for the upcoming week is pegged at 50,500.
Conclusion
The Nifty and Bank Nifty indices closed below their respective monthly support zones, signalling potential weakness in the upcoming days. The 24,250 level for Nifty and the 50,500 level for Bank Nifty remain critical for initiating a fresh long position. Consistent close below these levels signalling more downside risk for the indices. Investors and traders should stay vigilant around these levels, which will be pivotal in determining future market directions.
Weekly Stocks
Buy Reliance at ₹1246; Stop Loss at ₹1200; Target Price of ₹1320.
Buy HCL Tech at ₹1795; Stop Loss at ₹1760; Target Price of ₹1860.
Buy Tata Motors at ₹735; Stop Loss at ₹700; Target Price of ₹780.
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.
