Stocks to buy | Ganesh Dongre's stock recommendations | Shares to buy: The Indian equity benchmarks ended the week on a negative note, with the Nifty declining nearly 2.36% to close at 22,600, while the Bank Nifty fell approximately 2.79% to settle around 54,287. Sectoral performance remained broadly weak, with most major sectors witnessing losses ranging from 1% to 7% during the week. The Infrastructure sector emerged as the top loser, reflecting the prevailing weakness in the broader market and subdued investor sentiment.
As highlighted in our previous weekly outlook, the Nifty had entered oversold territory following the recent sharp correction, creating the possibility of a technical rebound. However, despite intermittent recovery attempts and buying interest at lower levels, the index failed to sustain its upward momentum and faced selling pressure near the 23,200 resistance level. Global uncertainties, particularly concerns surrounding the sharp rise in Brent crude oil prices and escalating geopolitical tensions, continued to weigh on market sentiment. The possibility of crude oil prices exceeding $110 per barrel has further intensified concerns about inflation and its potential impact on the Indian equity market.
Ganesh Dongre, AVP — Equity Research at Anand Rathi, believes the Indian stock market mood is cautious after a continuous slide in the Nifty 50 index despite being in the oversold zone.
Speaking on the outlook for the Nifty 50 index, Ganesh Dongre of Anand Rathi said, the 50-stock index witnessed profit booking near the 23,200 mark and ended the week around the crucial support zone of 22,500–22,600. This zone remains significant, as it represents an important historical support area near previous yearly and quarterly lows.
“On the upside, the immediate resistance is placed in the 23,200–23,400 range, followed by the 24,100–24,200 zone, where the 200-day Exponential Moving Average (EMA) is positioned. A sustained weekly close above 23,200–23,400 would improve the near-term technical outlook and could pave the way for a recovery towards 24,000–24,200,” said Ganesh Dongre of Anand Rathi.