Buy or sell: From Federal Bank to HUL — Ganesh Dongre recommends three stocks for Monday

Buy or sell: As we have already discussed in the last week due to a major fed rate decision meeting in upcoming week, we can see a breakthrough in the indices. This week, the Nifty index closed at 25,790, marking a significant breakthrough above the key resistance level of 25,500. This rise highlights the continuation of a bullish trend, which was fuelled by the Federal Reserve’s decision to cut interest rates by half a percentage point. This unusually large move indicated that the Fed is nearing victory in its fight against inflation, boosting market sentiment and investor confidence.

Throughout the week, Nifty fluctuated between 25,100 and 25,500 before hitting a fresh high near to the 25800 by week’s end. The close above 25,500 confirms the index’s strength, setting its sights on the next resistance level at 26,000. The immediate support for Nifty now lies at 25,500. Various sectors, including real estate, capital goods, automobiles, and power, have contributed to this upward momentum, reinforcing the bullish outlook for the coming weeks.

Weekly Trading Overview

The trading week began with a positive tone as Nifty tested the 25,100-support level early in the week before rebounding sharply. By Friday, the index closed near the upper range of 25,800, approaching the resistance zone of 25,900–26,000. This reinforces the bullish sentiment, indicating further upside potential if the index sustains above the 25,500 marks. The key levels to watch in the upcoming week include support around 25,500 and resistance near 26,000.

Bank Nifty Performance

In line with the Nifty index, Bank Nifty has also displayed bullish strength, as discussed in last week a major trendline break up move above 52000 mark will make a move advancing toward its target of 53,500 and the same way we have seen a closing above the resistance level of 53500 mark by the week end. The index opened with a gap-up on Monday and maintained its upward trajectory throughout the week. With Bank Nifty holding above the key support level of 52,000, the bullish outlook for banking stocks remains intact. The immediate resistance for Bank Nifty is at 55,000, while support is expected around 52,000 for the upcoming week. This continued performance signals strong investor confidence in the banking sector.

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

1] Federal Bank: Buy at ₹182-185 | Target Price: ₹195 | Stop Loss: ₹175

2] HDFC Life Insurance Company: Buy at ₹710-715 | Target Price: ₹755 | Stop Loss: ₹690

3] Hindustan Unilever: Buy at ₹2950-2980 | Target Price: ₹3050 | Stop Loss: ₹2880

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.