Buy or sell: From Infosys to SBI — Ganesh Dongre recommends three stocks for Monday

Buy or sell: After a week marked by significant global events, including the US presidential election and the Federal Reserve meeting, the Nifty Index wrapped up at 24,148.

Despite some volatility, the index remains trapped within a trading range of 23,800 to 24,800. The direction of the breakout, either above or below this zone, will likely set the tone for the next phase of the market, determining the path for both bulls and bears. 

Weekly Trading Overview

The week started with a gap-down opening on Monday, which saw the Nifty test critical support around the 23,800 mark. However, the index quickly rebounded, climbing back toward the resistance zone between 24,600 and 24,800. The surprise US presidential election result, with Mr. Trump being re-elected as the next US president, infused some strength into Indian indices. This global sentiment provided initial optimism, but profit booking soon kicked in, pulling the Nifty back to around 24,200 by the close of the week.

Despite several attempts to break through the immediate resistance levels of 24,600–24,800, the market struggled to maintain upward momentum, resulting in increased profit-taking and a lack of sustained bullishness.

On the daily chart, the Nifty completed a Head and Shoulders pattern, which saw it hit a new low at 23,800. Given this pattern, the next key support level stands at 23,500. If the Nifty manages to sustain above this level, the resistance zone will shift to 24,800–24,900 in the upcoming sessions. 

Bank Nifty Performance

The Bank Nifty index traded within a narrow range throughout the week, oscillating between 51,000 and 52,500. Despite this limited range, the Bank Nifty has managed to maintain its strength, holding well above the key 50,500 level. A breakout above 52,000 would indicate further bullish momentum, with resistance levels seen at 53,500 and then at 55,000.

Conclusion

Both the Nifty and Bank Nifty indices have successfully closed above their respective monthly support zones despite initial market volatility, maintaining a generally bullish sentiment. Investors are advised to closely monitor key support and resistance levels as they evaluate trading opportunities in the forthcoming sessions. 

Stocks to buy on Monday 

1. Infosys Ltd. (INFY): Buy at ₹1,830 | Target Price at ₹1,900 | Stop Loss at ₹1,260. 

2. State Bank of India Ltd. (SBIN): Buy at ₹843 | Target Price at ₹885 | Stop Loss at ₹815. 

3. National Aluminium Co. Ltd. (NATIONALUM): Buy at ₹238 | Target Price at ₹270 | Stop Loss at ₹220. 

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.