Buy or sell: Ganesh Dongre recommends three stocks to buy on Monday — 19 January 2026

Buy or sell stocks: The Indian stock market showed early signs of recovery after a multi-session decline, led by strong performances in select IT and banking stocks following positive earnings surprises. The rebound highlighted the underlying resilience of domestic financials even as global uncertainties persisted.

The recovery was driven mainly by heavyweight IT stocks after upbeat quarterly updates, helping the market absorb persistent concerns around U.S. tariff threats, including potential secondary duties linked to trade with Russia and Iran. While tariff-related overhangs remain, their impact has been contained so far. Continued domestic institutional inflows have provided a stabilising cushion against moderate FII outflows. Export-oriented sectors remain cautious, but resilient domestic consumption, steady services growth, and diversification in trade partners continue to support the broader economic outlook.

From a broader perspective, the recent pullback is a healthy correction within the larger uptrend, with key indices respecting higher-timeframe supports. Improving earnings momentum and sustained DII participation continue to limit downside risk, even as global headwinds and U.S. policy uncertainties may cap aggressive upside in the near term.

Stock market outlook

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, believes the Indian stock market sentiment has improved, and the Nifty 50 index touching 26,000 and 26,300 levels can't be ruled out.

Speaking on the outlook of the Nifty 50 index, Ganesh Dongre of Anand Rathi said, "The constructive undertone could extend to the Nifty 50 and broader midcap space in the upcoming week, especially with the Put-Call Ratio (PCR) at a supportive level of 0.75. As a result, a recovery toward the psychologically important 26,000–26,300 zone cannot be ruled out. Immediate resistance for Nifty is placed in the 26,300–26,500 zone, where supply pressure is likely to cap near-term gains."

"Derivatives data reinforces a range-bound yet constructive outlook. The highest Call open interest is concentrated between the 26,000 and 26,500 strikes, indicating strong resistance in that band. In comparison, substantial Put open interest at the 25,500–25,700 strikes highlights a well-defined support base. Any corrective move toward this support zone is likely to attract buying interest, favouring selective, stock-specific accumulation rather than signalling a broader trend reversal," Ganesh added.

"Bank Nifty has already witnessed short covering and managed to close the week above the key 60,000 mark. For the upcoming week, immediate resistance is placed near 60,500, while derivatives positioning shows the highest Call open interest at 61,000 and the highest Put open interest at 59,500, followed by 60,000. Technically, Bank Nifty remains well supported above the crucial 58,500–59,000 band, keeping the broader banking structure intact, while resistance is seen in the 60,500–61,000 zone, with a stronger hurdle near 61,000," the Anand Rathi expert added.

On the outlook of the Bank Nifty index, Dongre said, "The Bank Nifty has already witnessed short covering and managed to close the week above the key 60,000 mark. For the upcoming week, immediate resistance is placed near 60,500, while derivatives positioning shows the highest Call open interest at 61,000 and the highest Put open interest at 59,500, followed by 60,000. Technically, Bank Nifty remains well supported above the crucial 58,500–59,000 band, keeping the broader banking structure intact, while resistance is seen in the 60,500–61,000 zone, with a stronger hurdle near 61,000."

Ganesh Dongre's stock recommendations today

Regarding stocks to buy on Monday, Ganesh Dongre of Anand Rathi recommended these three buy-or-sell stocks: Wockhardt, LT, and HDFC Bank.

1] Wockhardt: Buy at ₹1430 to ₹1440 range, Target ₹1510, Stop Loss ₹1385;

2] LT: Buy at ₹3850 to ₹3865, Target ₹4050, Stop Loss ₹3800; and

3] HDFC Bank: Buy at ₹930 to ₹950, Target ₹970, Stop Loss ₹910.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.