Buy or sell: Ganesh Dongre of Anand Rathi recommends three stocks to buy on Monday – 24 February

Buy or sell: Last week, the Nifty and Bank Nifty indices continued their consolidation phase within a familiar range, both closed down by approximately half a percent.

Nifty began the week at the 23,000 resistance level, maintained a lower-high pattern, and closed near to the support zone at 22,700. As highlighted in our previous analysis, Nifty has been forming a daily lower-high pattern, indicating a bearish trend that could potentially pull the index down to the next support levels at the 22,500–22,800 zone. Remarkably, this is the 13th consecutive day that Nifty has maintained this pattern from the 23,800 resistance mark.

Weekly Trading View

Heading into the upcoming week, our outlook remains unchanged, and traders are advised to exercise caution when holding long positions.

With the monthly expiry approaching, a close above the 23,000 mark could trigger a rally towards the 23,500–23,600 zone, aligning near to the 200-day moving average (DMA) and the previous month’s high. Conversely, a close below 23,000, coupled with the prevailing lower-high pattern, could push the index down to the 22,400–22,500 support range. Traders should remain vigilant and closely monitor these critical levels.

Bank Nifty Performance

The Bank Nifty index started the week on a flat note, remaining within the 49,000–50,000 range. However, it struggled to sustain above the 50,000 resistance zone. Looking ahead, the expected trading range for Bank Nifty next week is 47,500–50,000.

Conclusion

Both Nifty and Bank Nifty closed below their respective monthly resistance zones—23,600 for Nifty and 50,000 for Bank Nifty. These levels remain crucial for initiating fresh long positions. A sustained close below these thresholds could signal increased downside risk. Investors and traders should approach the market with caution and keep a close watch on these pivotal levels to assess future market direction.

Weekly Stocks

Buy TVS Motor at ₹2300; Stop Loss at ₹2250; Target Price of ₹2425.

Sell Muthoot Finance at ₹2212; Stop Loss at ₹2245; Target Price of ₹2165.

Buy Home First at ₹925-935; Stop Loss at ₹910; Target Price of ₹970.

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