Ganesh Dongre’s Top Picks: Buy BEL, NLC India & RCF as Nifty Holds Strong at Key Support Levels

The Nifty index closed the week at 24,823, aligning with the support range of 24,400-24,600 that was discussed earlier. As expected, the index managed to stay above this support level, finishing close to its resistance zone of 24,900-25,200.

During the week, the Nifty moved between 24,400 and 24,800. The fact that it stayed above 24,600 suggests that the upward trend might continue, with the next targets at 24,900 to 25,200.

Weekly Trading Summary

The week started strong with a gap-up opening on Monday, where the Nifty briefly tested the 24,600 support level before bouncing back toward 24,900.

Throughout the week, the market saw specific stocks rise, with the Nifty trading in a range of 24,500-24,900. For the coming week, key support is expected around 24,500-24,600, while resistance could be near 25,200.

Bank Nifty Performance

The Bank Nifty also had a gap-up opening on Monday, showing strength by holding above the 50,000 level and closing the week near 51,000, which is a resistance level.

This performance indicates potential strength in banking stocks. As long as support stays above 49,500, the bullish outlook for the financial sector remains. The immediate resistance for Bank Nifty is at 52,000, with further resistance at 53,500.

Conclusion

Both the Nifty and Bank Nifty indices managed to close above their monthly support levels, keeping the overall market sentiment positive. Investors should watch the key support and resistance levels closely as they consider their trading decisions in the coming sessions.

Stock Picks for Monday

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, suggests buying the following three stocks on Monday, August 25:

• BEL: Buy at ₹303-308, with a stop loss at ₹290 and a target of ₹340.
• NLC India: Buy at ₹270-275, with a stop loss at ₹252 and a target of ₹298.
• RCF: Buy at ₹196-200, with a stop loss at ₹188 and a target of ₹220.