Buy or sell: NMDC to REC—Ganesh Dongre recommends three stocks for Monday

The Nifty 50 index wrapped up the week at 24,965, comfortably above the anticipated support zone of 24,800 to 24,900. A consistent close above the key support level of 25,700 indicates that the bullish trend may continue, with potential resistance levels looming around 26,700. 

Market participants are keenly observing whether the Nifty 50 index can maintain its position above the 25,700 level, as sustaining this level could signal further upward momentum towards the 26,500 level.

Weekly Trading Summary

The week began with a gap-down opening on Monday, prompting the index to test the support level at 25,800. Throughout the week, trading remained confined within a tight range of 25,800 to 26,300. The index was technically in an oversold zone, resulting in a bounce from the 24,800 support level; however, it struggled to breach the immediate resistance of 25,700. 

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Looking ahead, a sustained close above 24,800 could foster momentum toward 25,700. Meanwhile, the ongoing Israel-Iran conflict is keeping market sentiment cautious, and with the earnings season underway on Dalal Street, investors are likely to focus on stock-specific movements.

Bank Nifty Performance

The Bank Nifty mirrored the Nifty’s performance with a gap-down opening on Monday, making a push toward the resistance level of 52,000 during the week. It retraced its gains by the week’s end, closing below the 52,000 support level. 

Technically, the Bank Nifty remains in an oversold condition, with significant support identified in the range of 50,500 to 51,000 and immediate resistance at 52,000 and 53500. A suggested strategy for the upcoming week is to consider buying on dips near the support zone, particularly as major private bank stocks continue to exhibit bullish strength within the indices.

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Conclusion

Despite initial market volatility, the Nifty and Bank Nifty indices have successfully closed above their respective monthly support zones, 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

Ganesh Dongre, Senior Manager – of Technical Research at Anand Rathi, RECommends three stocks to buy on Monday, October 14

Buy REC Ltd at ₹538, Stoploss ₹510; Target ₹570

Buy NMDC at ₹233, Stoploss ₹215; Target ₹255

Buy Jindal Steel & Power at ₹1,005, Stoploss ₹975; Target ₹1,055

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.