Anand Rathi Analyst Ganesh Dongre Picks Stocks to Consider on Monday

Indian Equity Markets Extend Losses for Second Consecutive Session

The benchmark indices, Sensex and Nifty 50, extended losses for the second consecutive session on Friday, May 8, dragged lower primarily by weakness in banking and financial stocks. The Sensex ended 516 points, or 0.66%, lower at 77,328.19, while the Nifty 50 declined 151 points, or 0.62%, to close at 24,176.15. In contrast, broader markets remained relatively resilient, with the BSE 150 Midcap index slipping just 0.05% and the BSE 250 Smallcap index rising 0.15%.

Despite the losses, the Indian equity markets witnessed a range-bound yet positive week, with the NIFTY 50 closing at 24,176, up 0.58%, while the NIFTY Bank ended at 55,310, also gaining 0.58% on a weekly basis. On the global front, investor sentiment remained influenced by ongoing geopolitical developments, particularly the ceasefire discussions between the United States and Iran. Optimism surrounding a possible diplomatic resolution supported global risk sentiment, as market participants continued to monitor developments closely.

Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, believes that market sentiment has turned cautiously optimistic, with investors showing a preference for a buy-on-dips strategy amid improving technical structure. He noted that the near-term outlook remains highly sensitive to global geopolitical developments, especially updates related to the ongoing US-Iran discussions.

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The coming week is expected to be crucial as traders and investors closely track global cues and institutional activity. Participants are advised to remain selective in stock picking, maintain disciplined risk management practices, and stay alert to news-driven volatility, as any escalation or resolution on the geopolitical front could significantly influence overall market direction.

On the technical outlook, Dongre said that the Nifty continued to trade near the psychologically important 24,600–24,800 zone, which also coincides with its 200-day EMA. Immediate support for the index is now placed in the 23,500–23,800 range, whereas the 24,800–25,000 band continues to act as a major resistance zone.

On the Bank Nifty outlook, Dongre added that Bank Nifty closed the week near 55,310 with modest gains and is now approaching a crucial resistance zone in the 56,500–57,000 range, which also aligns closely with its 200-day EMA. Immediate support for the banking index is seen between 54,500 and 55,000. A decisive breakout above the resistance zone could further reinforce bullish momentum within the banking space and provide additional support to the broader market trend.

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