Stocks to buy | Ganesh Dongre's stock recommendations: The key benchmark indices of the Indian stock market ended the week on a positive note, with the Nifty gaining nearly 3.78% to close at 23,146, while the Bank Nifty advanced 0.79% to settle at 55,844. Sectoral performance was broadly positive, with most major sectors witnessing gains. The IT sector emerged as the top performer, rallying nearly 10% during the week.
Ganesh Dongre, AVP — Equity Research at Anand Rathi, believes the recovery during the week was supported by buying interest at lower levels, although global uncertainties continue to weigh on overall market sentiment.
“Concerns surrounding the US Federal Reserve’s interest-rate outlook, the possibility of further rate hikes by the Fed and the RBI in the coming quarters, and the upward bias in US 10-year Treasury yields remain key factors influencing global risk appetite and foreign institutional investor (FII) flows into emerging markets, including India,” Ganesh Dongre of Anand Rathi said.
Factors that may dictate the Indian stock market next week, Ganesh Dongre of Anand Rathi said, traders should closely monitor Brent crude oil prices, which are approaching their previous highs near $110 per barrel. A sustained move above this level could push crude prices towards $114 per barrel, potentially increasing inflationary concerns and adding pressure on equity markets. So any fresh geopolitical developments, particularly those involving the Middle East and US–Iran relations, could further influence crude oil prices and market sentiment. Therefore, movements in crude oil and developments on the geopolitical front will remain critical factors in determining the market's next directional move.
The Anand Rathi expert believes the Nifty witnessed a notable rebound from the 22,000–22,200 support zone and recovered towards the 23,200 mark by the end of the week. This support zone remains crucial, as it represents a significant 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 EMA is positioned.