Ganesh Dongre’s Top Picks: Zydus Life, SBIN, M&M Among Stocks to Buy as Nifty Closes Above Key Level

The Nifty index ended the week on a strong note, closing at 25,235, which is above the key resistance level of 25,200. This suggests that the market is still in a bullish trend, especially with the index holding steady above the 24,900 support zone.

Throughout the week, Nifty fluctuated between 24,900 and 25,200. By breaking past 25,200, it shows that the index has momentum and could potentially reach new highs if it stays above the 25,000 mark in the coming weeks. The immediate support for Nifty is at 24,900. Sectors like Technology, Media, Power, Telecom, Pharma, Finance, Oil & Gas, and Chemicals have all contributed positively to this upward trend.

Weekly Market Overview

The week started off well, with Nifty briefly testing the 24,900 support level before bouncing back strongly toward 25,200 by Friday. As the week came to a close, fresh buying activity helped the index finish near the immediate resistance level of 25,200, further solidifying the bullish sentiment. For the upcoming week, key support is expected around 24,800-24,900, while resistance is anticipated near the 25,500-25,600 zone.

Bank Nifty Performance

The Bank Nifty also had a positive start to the week but struggled to move above the resistance level of 52,000. Despite this, the index maintained its upward trend and closed above its previous weekly high of 51,000. As long as the support levels hold above 49,500, the outlook for banking stocks remains positive, indicating continued investor confidence. The immediate resistance for Bank Nifty is at 52,000, with further resistance expected at 53,500 in the upcoming week.

Conclusion

Both the Nifty and Bank Nifty indices closed above their key monthly support zones, despite some market volatility earlier in the week. This keeps the overall market sentiment positive. Investors should keep a close watch on the key support and resistance levels as they consider trading opportunities in the coming days.

Stocks to Watch on Monday

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, suggests buying the following three stocks on Monday, September 2:

• Zydus Life: Buy between ₹1115-1125, with a stop-loss at ₹1080 and a target of ₹1180.
• SBIN: Buy between ₹815-820, with a stop-loss at ₹790 and a target of ₹855.
• M&M: Buy between ₹2790-2820, with a stop-loss at ₹2740 and a target of ₹2950.