BHEL, HPCL, Shriram Finance
Ganesh Dongre of Anand Rathi Recommends BHEL, HPCL and Shriram Finance for Monday
Indian equity markets have declined for a fifth consecutive week, driven by rising crude oil prices, increasing global bond yields and ongoing concerns over US inflation. The Sensex fell 2.27% to close at 74,781.76, while the Nifty 50 slipped 2.09% to end at 23,398.10. Midcap and smallcap indices also dropped, declining 1.40% and 0.88% respectively. Geopolitical tensions, particularly between the US and Iran, have kept energy markets volatile, with Brent crude nearing $110 per barrel during the week and closing around $104, raising fears of imported inflation and a wider current account deficit. Sectoral weakness was seen in cement, metals, technology and realty, which saw profit booking and declines of 3–5% over the week.
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, highlighted that the key event to watch in the coming week is the US Federal Reserve’s interest-rate decision, which could trigger volatility in global equity markets. Technically, the Nifty 50 has moved into an oversold zone on short-term charts after struggling to sustain above the 24,500–24,600 resistance level, which aligns with the 200-day EMA. Dongre noted that while the index remains under pressure, a technical bounce or short-term consolidation is possible from current levels near its prior low of 23,250. However, the broader structure remains cautious due to ongoing geopolitical risks and inflationary pressures from oil prices.
On the Bank Nifty, Dongre observed that the index is trading near its 200-day EMA at approximately 56,600, a critical technical level. He identified 56,000–56,300 as the key support zone and 58,000–58,500 as important resistance. A sustained breakout above 58,500 would confirm a resumption of the medium-term uptrend, while a breakdown below 56,000 could lead to further corrective pressure.
Despite the recent correction, Dongre maintained that both Nifty and Bank Nifty retain a positive medium-term structure, with the current decline viewed as a consolidation phase after the earlier rally rather than a trend reversal. He advised traders to monitor the Nifty’s 23,000–24,000 range, with 23,800 as a key recovery level, and the Bank Nifty’s 56,000–56,300 support and 58,500 resistance.
Based on his technical outlook, Dongre recommended three stocks to buy on Monday: Bharat Heavy Electricals (BHEL) in the range of ₹428–432 with a target of ₹445 and stop loss at ₹420; Hindustan Petroleum Corporation Ltd (HPCL) at ₹350–352, targeting ₹370 with a stop loss of ₹338; and Shriram Finance between ₹1020–1025, with a target price of ₹1060 and stop loss at ₹1000. The article includes a disclaimer stating that the views are those of the analyst and not of Mint, and that investors should consult certified experts before making investment decisions.
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