Buy or sell: Zydus Life, SBIN, M&M — Ganesh Dongre recommends three stocks for Monday

Buy or sell: The Nifty index closed the week at 25,235, breaking above the resistance zone of 25,200, as discussed in the previous analysis. This close above the 25,200 resistance level indicates a continuation of the bullish trend, demonstrating the strength of the index above the support zone of 24,900.

Throughout the week, Nifty fluctuated between 24,900 and 25,200, ultimately surpassing the resistance at 25,200. The primary focus for market participants now is whether Nifty can sustain its position above the 25,000 marks in the coming weeks, potentially setting a new high. The immediate support level is identified at 24,900. Positive contributions to this upward trend have been observed from sectors such as Technology, Media, Power, Telecom, Pharma, Finance, Oil & Gas, and Chemicals.

Weekly Trading Overview

The trading week began on a positive note on Monday, with the index briefly testing the support level of 24,900 before rebounding strongly toward the 25,200 marks by Friday. As the week concluded, a fresh wave of buying emerged, allowing the index to close near the immediate resistance level of 25,200, further reinforcing the bullish sentiment. For the upcoming week, key support levels are expected around 24,800-24,900, while resistance is anticipated near the 25,500-25,600 zone.

Bank Nifty Performance

The Bank Nifty also opened on a positive note on Monday but faced challenges moving above the resistance level of 52,000. Despite this, the index maintained a bullish trend throughout the week and managed to close above its previous weekly high of 51,000. As long as support levels remain above 49,500, the bullish outlook for the banking sector persists, reflecting ongoing investor confidence in banking stocks. The immediate resistance for the Bank Nifty is at 52,000, with further resistance expected at 53,500 for the upcoming week.

Conclusion

Both the Nifty and Bank Nifty indices have successfully closed above their respective monthly support zones despite initial market volatility, maintaining a generally bullish sentiment. 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, September 2.

Buy Zydus Life at ₹1115-1125… Stoploss…1080 Target…1180

Buy SBIN at ₹815-820… Stoploss…790 Target…855

Buy M&M at ₹2790-2820… Stoploss…2740 Target…2950

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