Buy or Sell: Ganesh Dongre recommends three stocks to buy on Monday – December 9

Buy or Sell: Indian stock market benchmark indices, Sensex and Nifty 50, rose more than 2% last week, registering their biggest weekly gain in six months. The domestic equity market witnessed significant activity following the monetary policy decision of the Reserve Bank of India (RBI).

Monetary Policy Committee of RBI The Cabinet (MPC) led by Governor Shaktikanta Das decided to keep the repo rate unchanged at 6.5%, signaling a cautious stance amid the ongoing economic challenges. The central bank also reduced cash reserve ratio (CRR) was increased by 50 basis points to 4%, aimed at bringing liquidity into the system.

Also, the RBI cut its GDP growth forecast for 2024-25 to 6.6% from the earlier estimate of 7.2%, underscoring the headwinds facing the economy. While the RBI has maintained a ‘neutral’ stance, its focus is clearly on keeping inflation in line with its target while supporting growth. This comes after India’s inflation rose to 6.2% in October, breaching the RBI’s tolerance limit, and GDP growth slowed to 5.4% for the July-September quarter.

technically, nifty 50 index Showing strength. The index made a significant jump last week and touched near the 25,000 mark, having earlier surged to the level of 24,600. Throughout the week, it traded in the range of 24,000 – 25,000, indicating strong performance across all sectors.

Weekly Trading Overview

nifty 50 The index started the week with a gap up and tested the 24,600 and 25,000 resistance zones by the end of the week. Near term support for Nifty is 24,000 and 24,500, which is aligned with the highest Open Interest (OI) on the put option side, indicating strong support. For the upcoming week, resistance levels are marked at 25,000-25,300, the range for the week is expected to be between 24,300 and 25,300, and any breakout beyond these levels could indicate a new trend.

bank nifty performance

Bank Nifty index recorded a strong performance and closed at 53,500 level, showing a gain of 2.5% this week. After opening with a gap up, the index experienced continuous buying throughout the week, testing resistance levels at 53,000 and 54,000. support for the coming days bank nifty 52,500 levels are being seen, while resistance remains at 54,000 levels.

conclusion

Despite early market volatility, both the Nifty 50 and Bank Nifty indices have managed to close above their respective monthly support zones, maintaining a generally bullish trend. Investors are advised to closely monitor key support and resistance levels while evaluating trading opportunities in the upcoming sessions.

Stocks worth buying on Monday:

1. Bharat Dynamics, buy at 1,200 – 1,220 | target price: 1,285 | Fall off: 1,140

2. LIC India, buy at 980 – 985 | target price: 1,050 | Fall off: 955

3. Axis Bank: buy at 1,180 – 1,190 | target price: 1,240 | Fall off: 1,155

Disclaimer: The views and recommendations given in this analysis are those of the individual analysts or broking companies, and not of Mint. We strongly advise investors to consult certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.