Stocks to buy | Shares to buy | Ganesh Dongre's stock recommendations: The Indian equity benchmarks ended the week on a positive note, with the Nifty gaining nearly 2% to close at 23,053, while the Bank Nifty advanced 0.75% to settle at 54,686. However, the Nifty 50 index witnessed buying interest at lower levels and recovered towards the 23,200 mark, although it continues to face resistance at higher levels. Sectoral performance remained broadly positive, with most major sectors witnessing gains in the range of 2%–7%.
The Pharma sector emerged as the top performer, rallying nearly 7% during the week. However, despite the recovery in domestic equities, Brent crude oil remains elevated, hovering in the $110–$115 per barrel range, keeping inflationary concerns and global uncertainties in focus.
Ganesh Dongre, AVP — Equity Research at Anand Rathi, believes a sustained weekly close of the Nifty 50 index above 23,200–23,400 would improve the near-term technical outlook of the Indian stock market. Ganesh Dongre of Anand Rathi said that both the Nifty 50 and Bank Nifty index remain in a cautious technical phase. The rebound from oversold levels has improved near-term sentiment; however, a sustained recovery will require the Nifty to establish itself above the 23,200–23,400 resistance zone and subsequently reclaim the 24,000–24,200 range. Similarly, the Bank Nifty needs to move decisively above 56,400–56,500 to strengthen its technical outlook.
“Until these crucial resistance levels are convincingly breached, markets are likely to remain volatile, with intermittent recovery attempts, range-bound consolidation and selling pressure at higher levels. Traders should therefore maintain a cautious approach and closely monitor key support and resistance levels, along with Brent crude oil prices and geopolitical developments, for confirmation of the next directional move,” Ganesh Dongre of Anand Rathi said.
Speaking on the Nifty 50 outlook for next week, the Anand Rathi expert said the 50-stock index witnessed a notable rebound from the 22,500–22,200 support zone and recovered towards the 23,200 level by the end of the week. This support area remains crucial, as it represents a significant historical support zone near previous yearly and quarterly lows. On the upside, immediate resistance is placed in the 23,200–23,400 range, followed by the 24,100–24,200 zone, where the 200-day EMA is positioned.