Buy or sell: Ganesh Dongre recommends three stocks to buy on Monday — December 16

Buy or sell: Throughout the week, the Nifty index remained in a range-bound zone, oscillating between the 24,000 and 25,000 levels. The week began with a sideways momentum, indicating a lack of significant directional movement.

As the week progressed, profit booking took place, which caused the index to dip towards the support zone around 24,000 to 24,200. However, this drop was short-lived as Nifty quickly rebounded, regaining strength and moving back toward the resistance zone near 25,000. 

Technically, the Nifty index displayed a bullish pattern last week, taking support from the 200-day moving average (DMA) near the 23,000 mark. This led to the formation of an inverted head and shoulders pattern, which suggests a target range of 25,200 to 25,300. Holding above the neckline level of 24,200 would support the bullish outlook, with these higher targets still in sight for the market. 

Bank Nifty Performance

Similar to Nifty, the Bank Nifty index traded within a relatively narrow range, fluctuating between the 53,000 and 54,000 levels. Despite the limited range, the Bank Nifty has managed to maintain its strength, closing well above the key support level of 53,000, which corresponds to the previous week’s high.

Sustaining above the 53,000 level is crucial for continued bullish momentum. If the index manages to stay above this level, it could see further upside with resistance likely to appear around the 55,000 mark in the upcoming week. 

Conclusion

Both the Nifty and Bank Nifty indices have closed the week above their respective support zones, signaling resilience despite the initial market volatility. This indicates an overall bullish sentiment in the market.

Investors should closely monitor key support and resistance levels, especially around 24,200 for Nifty and 53,000 for Bank Nifty, as these will be critical in determining future price movements. 

Stocks to buy on Monday 

1. Bharat Dynamics Ltd. (BDL): Buy at ₹1,260 | Target Price at ₹1,350 | Stop Loss at ₹1,180. 

2. Hindustan Aeronautics Ltd. (HAL): Buy at ₹4,669 | Target Price at ₹5,000 | Stop Loss at ₹4,500. 

3. Central Depository Services Ltd. (CDSL): Buy at ₹1,944 | Target Price at ₹2,000 | Stop Loss at ₹1,900. 

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.