Expert Picks: Top 3 Stocks to Buy on Monday for Big Gains

The Nifty 50 index ended the week at 24,965, staying well above the support range of 24,800 to 24,900. A steady close above the key level of 25,700 suggests that the bullish trend might continue, with possible resistance around 26,700.

Investors are watching closely to see if the Nifty 50 can hold above 25,700. If it does, there could be more upward movement toward the 26,500 level.

Weekly Trading Summary

The week started with a gap-down opening on Monday, leading the index to test the support at 25,800. Throughout the week, trading remained within a narrow range of 25,800 to 26,300. The index bounced back from the support at 24,800 due to being technically oversold but found it hard to break through the immediate resistance at 25,700.

Looking ahead, if the index maintains a close above 24,800, it could gain momentum toward 25,700. However, the ongoing conflict between Israel and Iran is keeping market sentiment cautious, and with earnings reports being released, investors are likely to focus on specific stocks.

Bank Nifty Performance

The Bank Nifty index also had a gap-down opening on Monday and attempted to reach the resistance level of 52,000 during the week. By the end of the week, it fell back and closed below the 52,000 support level.

Technically, the Bank Nifty is in an oversold state, with strong support between 50,500 and 51,000. Immediate resistance is at 52,000 and 53,500. A suggested strategy for the upcoming week is to consider buying on dips near the support zone, especially since major private bank stocks continue to show bullish trends.

Conclusion

Despite some market ups and downs, both the Nifty and Bank Nifty indices have closed above their monthly support zones, keeping a generally bullish outlook. Investors should keep an eye on key support and resistance levels as they look for trading opportunities in the coming sessions.

Stocks to Buy on Monday

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommends three stocks to buy on Monday, October 14:

• Buy REC Ltd at ₹538, with a stop loss of ₹510 and a target of ₹570.
• Buy NMDC at ₹233, with a stop loss of ₹215 and a target of ₹255.
• Buy Jindal Steel & Power at ₹1,005, with a stop loss of ₹975 and a target of ₹1,055.