Buy or sell: Ganesh Dongre of Anand Rathi recommends three shares to buy after stock market holiday on Monday

Buy or Sell: This week, Indian stock indices experienced significant volatility, witnessing sharp movements of 6–8% in both directions. The market remained highly reactive to ongoing developments in the U.S.-China tariff dispute, which heightened investor uncertainty. 

A brief recovery was sparked by President Donald Trump’s announcement to temporarily halt the imposition of steep U.S. reciprocal tariffs, which helped improve investor sentiment. However, persistent geopolitical tensions between the U.S. and China continued to act as a headwind, capping any meaningful market upside.

The Nifty 50 closed the week marginally lower, declining by 0.33%. The index opened the week near 22,800, hit a low of 21,700, and eventually rebounded to close back at 22,800, which is close to its previous weekly low and close levels. The Bank Nifty also ended in the red, slipping 0.97% for the week. 

Technical Analysis

On the weekly chart, Nifty continues to form a lower-high pattern, signalling cautious sentiment. On a DAILY scale, the index has yet to break above its 200 EMA and close above the monthly high, So this is reinforcing a sideways to cautious market structure.

Currently, resistance is seen in the 23,500–23,600 zone. As highlighted in previous analyses, the market shows signs of bearishness if Nifty fails to hold the 22,800–23,000 levels. A breakdown below this range could lead to further declines toward the 22,100–22,300 range, with major support pegged at 21,700— The 21,700 mark, which aligns with the 23.6% Fibonacci retracement level measured from the COVID-19 low, remains a critical support zone.

Despite short-term volatility, we continue to recommend a buy-on-dips strategy, as long as Nifty holds above the 21,700–22,000 zone on a closing basis. The next immediate upside resistance levels are at 23,600 and 24,000. 

Bank Nifty Outlook

As anticipated, Bank Nifty remained resilient, provided it holds above the crucial 50,000 mark on a weekly closing basis. This level aligns closely with its 200 EMA, providing technical support.

Looking ahead, if Bank Nifty sustains above 50,000, it could potentially rally towards 52,000.-53000 mark. We continue to advise a buy-on-dips approach, particularly near key support zones, while focusing on stock-specific opportunities within the index.

Conclusion

Both Nifty and Bank Nifty managed to close above their respective monthly support zones—22,100 for Nifty and 50,000 for Bank Nifty. Key immediate supports now stand at:21,700 for Nifty & 49,000 for Bank Nifty

These levels will be crucial for initiating fresh long positions in the coming sessions. Traders and investors should maintain a cautious yet opportunistic stance, closely monitoring these supports for signs of market direction. 

Stocks to Buy

1. RBI Bank Ltd. (RBLBANK): Buy at ₹170-173; Target at ₹180; Stop Loss at ₹164.

2. DLF Ltd. (DLF): Buy at ₹620-630; Target at ₹670; Stop Loss at ₹590.

3. REC Ltd. (RECLTD): Buy at ₹398-404; Target at ₹420; Stop Loss at ₹394.

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