Buy or sell: Ganesh Dongre of Anand Rathi recommends three stocks to buy on Monday - 21 April

Buy or sell: During the past week, the Nifty Index showed a strong recovery, supported by Foreign Institutional Investors (FIIs) purchasing stocks worth ₹15,000 crore in the cash market. Sector-wise, Realty, Chemicals, New Age businesses, Banking, and Textiles led the rally, each witnessing gains of nearly 8%, which helped the Nifty and Bank Nifty post solid weekly gains of approximately 4% and 6%, respectively.

This bullish momentum was primarily driven by a combination of global and domestic factors, including U.S. President Donald Trump’s decision to pause the implementation of steep reciprocal tariffs, as well as the Reserve Bank of India’s accommodative policy stance that boosted investor sentiment. However, geopolitical tensions involving the U.S.-China and U.S.-Iran continued to loom, capping further gains in the market.

Nifty 50 performance

From a technical standpoint, Nifty continues to maintain a higher high pattern on the weekly chart. On the monthly scale, it has successfully reclaimed and closed above the 200-day Exponential Moving Average (EMA), indicating the presence of bullish strength in the market.

Currently, Nifty’s support lies in the 22,800–23,000 zone, and as per our earlier analysis, the market trend remains intact with a buy-on-dips strategy as long as Nifty holds above the 21,700–22,000 levels on a closing basis. This zone coincides with the 23.6% Fibonacci retracement level from the COVID-19 lows, making it a critical area of support.

Effectively 21,700 acting as a strong long-term support. On the upside, emotional level resistance is seen around the 23,900–24,000 mark, and a further breakout could take the index toward the 24,500–24,600 levels.

Bank Nifty performance

Bank Nifty also remained resilient through the week, holding firmly above the crucial 50,000 level, which aligns with its 200 EMA and offers strong technical support. If it continues to stay above this level, the index could potentially rally towards the 52,000–53,000 zone.

As with Nifty, a buy-on-dips approach remains advisable, especially around key support zones, while focusing on selective stock-specific plays within the banking sector. Our resistance target has already been achieved, suggesting strength within the index.

Conclusion

In conclusion, both Nifty and Bank Nifty closed above their respective monthly support levels—22,100 for Nifty and 50,000 for Bank Nifty. Strong support at 21,700 for Nifty and around 50,500 for Bank Nifty will be critical for initiating fresh long positions.

With a significant U.S.-Iran meeting scheduled this week, geopolitical developments may impact sentiment, and traders are advised to remain cautious while keeping a close watch on these key technical levels to navigate market direction effectively.

Weekly Stocks

Buy Aditya Birla Capital at ₹198; Stop Loss at ₹178; Target Price of ₹225.

Buy Titagarh Rail Systems at ₹788; Stop Loss at ₹765; Target Price of ₹830.

Buy IRCTC at ₹768; Stop Loss at ₹800; Target Price of ₹755.

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.