Buy or sell: Ganesh Dongre of Anand Rathi recommends three stocks to buy on Monday - 6 January

Buy or sell: Last week, as anticipated, with the start of the new monthly series, both the Nifty and Bank Nifty indices were in oversold conditions. Sustaining above the 23,300–23,500 range and the critical 200-day moving average (200 DMA) created potential for a significant rebound. This materialized with both indices moving notably upward toward their respective resistance levels.

The Nifty Index broke through the 24,000 mark, with the next key resistance projected at 24,250. A sustainable close above this level suggests the bullish trend could extend further toward the 24,600–24,700 resistance zone. The consistent close above 24,000 highlights the market's strength, signalling a continuation of the range observed last month, provided the index holds its major 200 DMA support.

Additionally, the market's bullish momentum remains intact, supported by positive trends across various sectors. Heading into next week, sentiment is optimistic, particularly with quarterly results from major corporates on the horizon.

Bank Nifty Performance

The Bank Nifty index displayed a largely sideways performance throughout the week but managed to close above the 50,500 mark. The weekly trading range was between 51,000 and 52,000.

Looking ahead, if the Bank Nifty secures a daily close above the 51,000 level, it could move upward toward the 52,000–52,500 resistance zone. Key support remains at 50,500, while resistance is pegged at 53,000. However, caution is warranted if the index closes below the 50,500 mark, as this could indicate potential downside risks.

Conclusion

Both indices are positioned to maintain their bullish momentum, supported by monthly levels and consistent sectoral strength. Market participants should monitor key support and resistance levels closely for further cues on market direction.

Weekly stocks

BUY SBI Card Ltd at ₹710-720; Stop Loss at ₹680; Target Price of ₹755.

BUY State Bank of India at ₹794; Stop Loss at ₹778; Target Price of ₹830.

BUY Lyka Labs at ₹162-163; Stop Loss at ₹152; Target Price of ₹175.

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.