Buy or sell: Aditya Birla Capital, Wipro & Tata Power — Ganesh Dongre recommends three stocks for Monday

Buy or sell: This week, the Nifty index closed the trading week at 24,834, nearing its all-time high. Throughout the week, the Nifty fluctuated within a range of 24,000 to 24,800. This bullish trend may continue as the Nifty spot closed above the 24,600 mark, targeting the resistance levels of 25,200-25,300 for the next week.

Market participants are closely monitoring for sustained trading above 24,600 to confirm further upward momentum, with immediate support at the 24,000 level. Notably, individual stocks within the Nifty continue to show signs of bullish sentiment, contributing to overall market optimism.

The sectors contributing to this positive trend include Metal, Media, Power, Oil and Gas, and Automobile. Conversely, the banking sector has shown poor performance.

Weekly Trading Overview

The trading week began with a gap-down opening on Monday, testing immediate support around the 24,400 level before rebounding strongly.

Throughout the week, the Nifty experienced selling pressure and found support at the 24,000 level following the budget announcement by the Finance Ministry. By the weekend, the Nifty maintained its upward trajectory, closing above the immediate resistance level of 24,600 and decisively above the 24,800 mark by the end of the week, reinforcing the prevailing bullish sentiment.

Looking ahead, key support levels are identified at 24,000, indicating crucial areas where buying interest may emerge if the index retraces. On the upside, resistance is expected around 25,200-25,300, which could serve as barriers to further advances.

Bank Nifty Performance

The Bank Nifty experienced a sideways start to the week but couldn’t sustain bullish momentum throughout subsequent trading sessions, closing below its weekly low of 52,000. 

As long as support levels hold above 48,500, the bullish outlook for Bank Nifty remains intact, reflecting investor confidence in banking sector stocks. Immediate resistance for Bank Nifty stands at the 52,000 level, followed by 54,500.

Conclusion

In summary, both the Nifty and Bank Nifty have shown resilience in the face of initial market volatility, with a clear bias towards bullish sentiment on the major indices. Investors are advised to monitor key support and resistance levels closely as they navigate potential trading opportunities in the upcoming sessions.

Stocks to buy on Monday

Ganesh Dongre, Senior Manager - Technical Research at Anand Rathi recommends three stocks to buy on Monday, July 29.

Buy Aditya Birla Capital at ₹223… Stoploss…210 Target…240

Buy Wipro at ₹526 Stoploss.…500...Target…565

Buy Tata Power at ₹445 Stoploss.…428...Target…465

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.