Buy or Sell: Ganesh Dongre’s Top Picks for Monday Include ONGC, SBI, and Aurobindo Pharma as Nifty, Bank Nifty Face Sharp Drops

Both Nifty and Bank Nifty experienced significant drops last week after being in overbought conditions. The Nifty index fell by nearly 5%, closing at 25,014, while Bank Nifty dropped about 6%, ending at 51,462.

The initial optimism from the U.S. Federal Reserve cutting interest rates by half a percentage point quickly faded. Investors had hoped this would help control inflation, leading to strong gains. However, rising geopolitical tensions between Israel and Iran and stricter rules from SEBI for the derivatives market led to a shift in sentiment, with many traders booking profits.

Weekly Nifty Review

Nifty opened the week lower and faced continued profit booking. It tested the 26,400-resistance zone but eventually dropped to close near the 24,800-25,000 support zone. Key support in the coming week is 24,800, with resistance at 25,700. If Nifty falls below 24,800, it could drop to the 24,000 level. On the other hand, if it manages to close above 25,700-25,800, the market may move upward.

Bank Nifty Review

Similarly, Bank Nifty saw a drop last week, falling toward the 52,000 support zone after opening lower on Monday. If Bank Nifty closes below 52,000, it could see further declines to 50,000. The immediate resistance for Bank Nifty is 53,000, while key support remains at 50,000. A careful approach is recommended if the index dips below 52,000.

Despite the initial market volatility, both Nifty and Bank Nifty managed to close above key support levels, indicating a generally positive trend. Investors should watch these support and resistance levels closely when considering trading options in the coming sessions.

Stocks to Buy for Monday

ONGC

• Buy at: ₹290-295
• Target Price: ₹315
• Stop Loss: ₹280

SBI

• Buy at: ₹790-795
• Target Price: ₹815
• Stop Loss: ₹775

Aurobindo Pharma

• Buy at: ₹1465
• Target Price: ₹1535
• Stop Loss: ₹1410