Buy or sell: Ganesh Dongre recommends three stocks for Monday — November 25

Buy or sell: The Nifty Index ended the week at 23,907, firmly holding above the critical support level of 23,000. Despite facing adverse global news, such as the ongoing Russia-Ukraine war and the Adani bribery case, the Nifty managed to maintain its position above 23,000, showcasing resilience in the face of market uncertainty.

As highlighted in previous analyses, after entering the oversold zone, the Nifty found stability above 23,000, setting the stage for a potential rebound. This bounce has propelled the index closer to the 24,000 mark in the near term. Should the Nifty close decisively above 24,000, it could ignite a fresh wave of bullish momentum, with the next resistance levels potentially reaching the 24,500-24,600 range. 

The market’s price action confirmed earlier expectations of a pullback rally following a period of oversold conditions, with major indices, including Nifty and Bank Nifty, showing positive rebounds. Throughout the week, the Nifty demonstrated significant volatility, oscillating between the 23,000 and 24,000 levels.

Weekly Trading Overview

The week started with a gap-down opening on Monday, where the Nifty initially tested the support level of 23,300. However, it soon bounced back and managed to reach the resistance level of 24,000 by the end of the week. Stock-specific movements characterized the week’s trading pattern, with the index remaining within the 23,000 to 24,000 range.

From a technical perspective, the previous week’s data indicated that the Put-Call Ratio (PCR) was in the oversold zone, and it has now bounced back to 1.20. This reinforces a positive near-term outlook for the index. If the Nifty manages to sustain above the 24,000 mark, further upside towards 24,500-24,600 is possible in the coming days. 

Bank Nifty Performance

The Bank Nifty also experienced a gap-down opening on Monday, initially testing the support levels around the 49,000-49,500 zone. However, as the week progressed, it rebounded strongly, closing above the 51,000 resistance level and approaching 52,000.

On the daily chart, Bank Nifty taken its monthly support, suggesting the potential for further upside if the index stays above 51,000. The next major resistance level for Bank Nifty is seen at 52,000, with support around 50,500. A move above 51,000 could see the Bank Nifty targeting 52,000 in the near term. 

Conclusion 

Both the Nifty and Bank Nifty indices have managed to close above their respective weekly support zones despite initial market volatility, indicating a generally bullish sentiment. Investors should closely monitor key support and resistance levels as they evaluate trading opportunities in the upcoming sessions. 

Stocks to buy on Monday 

1. Coal India Ltd. (COALINDIA): Buy at ₹414 | Target Price at ₹435 | Stop Loss at ₹400. 

2. Aurobindo Pharma Ltd. (AUROPHARMA): Buy at ₹1,223 | Target Price at ₹1,255 | Stop Loss at ₹1,200. 

3. Hindustan Unilever Ltd. (HINDUNILVR): Buy at ₹2,440 | Target Price at ₹2,550 | Stop Loss at ₹2,375. 

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.