Computer Age Management Services, TCS, Cipla
Ganesh Dongre of Anand Rathi Names Three Stocks to Buy Amid Nifty Range-Bound Outlook
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, has recommended three stocks for purchase on Monday, citing a defined trading range for the Nifty in the coming expiry week. His recommendation comes as Indian equity markets ended the week on a cautious note, extending a three-week losing streak despite a Friday recovery led by IT stocks. The Nifty closed at 24,175.65, down 0.31% for the week, while the Sensex fell 0.36% to 77,264.51. Midcap and Smallcap indices, however, gained around 0.5% each, showing broader market resilience.
Dongre highlighted that sectoral performance remained positive, with Metal, Information Technology, and Pharma stocks each rising nearly 4% during the week, indicating supportive market breadth. He noted that derivative positioning shows the highest Put Open Interest at 24,000 and 23,900, and the highest Call Open Interest at 24,500 and 24,600, suggesting the Nifty could trade between 23,900 and 24,600 in the near term. A break above 24,600 with Call unwinding could improve momentum, while a drop below 23,900 may increase corrective pressure.
On technical outlook, Dongre favoured a buy-on-dips strategy for the Nifty, with immediate support at 23,900–24,000 and medium-term support at 23,500–23,600. Immediate resistance is seen at 24,500–24,600, with a sustained close above 24,800 potentially triggering the next leg of the uptrend. For Bank Nifty, which closed at 57,496, he identified 57,000 as key psychological support and 58,500 as critical resistance, with a break above that level possibly opening the path to 60,000.
Despite recent profit booking, Dongre affirmed that both Nifty and Bank Nifty maintain a positive medium-term technical structure, describing current consolidation as a healthy digestion phase after the earlier rally. He advised traders to monitor 24,000 and 24,500 on the Nifty, and 56,000 and 58,500 on the Bank Nifty, for confirmation of renewed momentum.
Based on this outlook, Dongre recommended specific entries: Computer Age Management Services at ₹450–460 with a target of ₹490 and stop loss at ₹435; Tata Consultancy Services at ₹2,330–2,340 with a target of ₹2,420 and stop loss at ₹2,280; and Cipla at ₹1,410–1,420 with a target of ₹1,470 and stop loss at ₹1,380. The article includes a disclaimer that the views are those of the analyst and not of Mint, and investors should consult certified experts before making investment decisions.
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