Buy or sell: Bata, Tata Chemicals & Power Grid — Ganesh Dongre recommends three stocks for Monday

Buy or sell: The Nifty index concluded the week at 24,541, which aligns with the support zone discussed in the previous analysis (23,800-24,000). As anticipated, the index showed movement above the 24,400-24,600 zone, closing at 24,541 and inching closer to its resistance level of 24,600.

During the week, the Nifty fluctuated between 23,900 and 24,400. A sustained close above the 24,600 mark suggests that the bullish trend may continue, with potential targets at resistance levels of 24,900 to 25,200 in the coming weeks.

Weekly Trading Overview

The trading week began with a flat opening on Monday, where the index briefly tested the support level of 24,000 before rebounding robustly by Friday. Despite facing selling pressure throughout the week, the Nifty found consistent support at the 24,000 level.

By the end of the week, short covering at this level allowed the index to close near the immediate resistance of 24,600, reinforcing the bullish sentiment. For the upcoming week, key support levels are expected around 24,000-24,400, while resistance is anticipated near 24,600-24,900.

Bank Nifty Performance

The Bank Nifty also experienced a sideways opening on Monday but struggled to hold above the resistance level of 51,000, indicating potential weakness. Throughout the week, the index displayed a bearish trend but managed to close near its weekly high of 51,000.

However, as long as support levels remain above 48,500, the bullish outlook for the banking sector persists, reflecting ongoing investor confidence in banking stocks. Immediate resistance for the Bank Nifty is identified at 51,000, with further resistance at 52,000.

Conclusion

Both the Nifty and Bank Nifty indices have managed to close above their respective monthly support zones, despite initial market volatility, maintaining a generally bullish bias. Investors are advised to closely monitor key support and resistance levels as they evaluate trading opportunities in the forthcoming sessions.

Stocks to buy on Monday

Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi recommends three stocks to buy on Monday, August 18.

Buy Bata India at ₹1420… Stoploss…1380 Target…1480

Buy Tata Chemicals at ₹1020-1030… Stoploss…1085 Target…985

Buy Power Grid at ₹335-340… Stoploss…325 Target…355

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.