Buy or sell: Ganesh Dongre of Anand Rathi recommends three stocks to buy on Monday – 24 March

Buy or sell: This week, all sectoral indices closed in the green, with the finance sector leading the gains at nearly 9%. Other notable performers included Realty, Power, Infrastructure, and Pharma, which recorded gains between 5% and 8%.

Weekly Trading Overview

The Nifty 50 ended the week on a positive note, rising 4% and adding approximately 900 points. It started at the 22,500 level and closed above all immediate resistance levels at 23,300.

From a technical perspective, Nifty continues to form a higher-low closing pattern on daily chart, reinforcing its bullish outlook. The next trendline resistance stands at 23,800, which aligns with the 200 EMA.

As highlighted in our previous analysis, the market has shown a shift in pattern favoring bulls. We advised traders to buy on dips as long as Nifty sustains above the 22,000–22,200 zone on a closing basis. The 23.6% Fibonacci retracement level at 21,700 remains a strong support for the coming sessions.

Over the past week, Nifty successfully achieved its resistance targets of 22,800 and 23,200. Moving forward, we continue to recommend a buy-on-dips strategy as long as Nifty holds above the 22,800–23,000 support zone. The next immediate resistance levels to watch are 23,800 and 24,000.

Bank Nifty Performance

As mentioned in last week’s analysis, despite IndusInd Bank tumbling over 25%, Bank Nifty held its previous low of 47,700, demonstrating resilience in the financial sector. This strength led to short-covering in Bank Nifty, which helped it recover and close above the 50,000 mark.

Looking ahead, if Bank Nifty sustains above 49,000, it could extend its rally towards 52,000. Hence, a buy-on-dips strategy remains advisable as long as Bank Nifty stays above 49,000.

Conclusion

Both Nifty and Bank Nifty are trading near their monthly resistance zones—23,600 for Nifty and 50,000 for Bank Nifty. However, strong immediate support levels are at 22,800 for Nifty and 49,000 for Bank Nifty.

These levels will be crucial for initiating fresh long positions. Traders and investors should remain cautious and monitor these key levels to gauge market direction in the coming weeks.

Weekly Stocks

Buy IRCTC at ₹720-725; Stop Loss at ₹700; Target Price of ₹755.

Buy Castrol India at ₹215-220; Stop Loss at ₹205; Target Price of ₹240.

Buy Tata Consumer Products at ₹955-960; Stop Loss at ₹935; Target Price of ₹1000.

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.