Buy or sell: DLF, REC Ltd & Indigo — Ganesh Dongre recommends three stocks for Monday

Buy or sell: The Nifty index concluded the week at 24,367, inching towards its resistance level of 24,400. Throughout the week, the index exhibited fluctuations between 23,900 and 24,400. The sustained close above the 24,000 mark suggests that the bullish trend may persist, with the index potentially targeting resistance levels of 24,400 to 24,600 in the upcoming week.

Market participants are particularly attentive to whether the Nifty can maintain trading above 24,600, which would signal further upward momentum. Immediate support is currently pegged at 24,000.

Positive contributions to this trend have been observed from sectors including Media, Textile, Technology, Realty, Banking, and Automobile.

Weekly Trading Overview

The trading week commenced with a gap-down opening on Monday, which saw the index briefly testing the support level of 24,000 before experiencing a robust rebound. Despite encountering 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 was noted, allowing the index to close near the immediate resistance of 24,400, thereby reinforcing the prevailing bullish sentiment. For the upcoming week, key support levels are anticipated around 24,000, while resistance is expected near 24,600.

Bank Nifty Performance

The Bank Nifty also faced a gap-down opening on Monday but struggled to hold above the resistance level of 52,000, indicating a potential weakness. Throughout the week, the index exhibited a bearish trend and closed below its weekly low 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 a further resistance level 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 12.

Buy DLF at ₹830-840… Stoploss…805 Target…880

Buy REC Limited at ₹585-590… Stoploss…565 Target…635

Buy Indigo at ₹4290-4300… Stoploss…4200 Target…4550

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.