Ganesh Dongre of Anand Rathi Recommends Three Stocks for Monday's Market.
Indian Stock Market Sees Third Straight Day of Decline
The Indian stock market continued its downward trend on Friday, April 24, with the benchmark indices experiencing their third consecutive day of decline. The Nifty dropped 1.10% to slip below the 24,000 level, closing at 23,907, while the S&P BSE Sensex fell 1.28% to end at 76,670 compared to the previous session.
The decline in the market is attributed to widespread selling in technology stocks, driven by renewed tensions in the Middle East and high crude oil prices. This has fueled fresh concerns about inflation, leading to a cautious investor sentiment globally. As a result, the market remains volatile, with investors closely watching for any signs of de-escalation in tensions.
Global Market Sentiment Remains Cautious
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The ongoing US-Iran ceasefire discussions in Pakistan over the weekend have drawn global attention, with hopes of a diplomatic breakthrough supporting global market sentiment. A positive outcome from these talks could act as a stabilizing factor for risk assets worldwide, including equities, while any negative surprise may trigger volatility.
Market Outlook for Next Week
According to Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, the coming week will be crucial as investors track updates from the ongoing US-Iran discussions. Traders are advised to remain selective, maintain disciplined risk management, and stay alert to news-driven volatility, as any escalation or resolution on the global front could significantly influence market direction.
Nifty 50 Outlook
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The Nifty 50 extended its rebound for the third consecutive week, reflecting improving sentiment in domestic markets. However, the index showed hesitation near the psychologically important 25,000 mark, which coincides with its 200-day EMA. Profit booking at higher levels led the index to close slightly lower for the week around the 23,900 mark.
| Support Zone | Resistance Zone |
|---|---|
| 23,500-23,800 | 24,800-25,000 |
From a technical perspective, the immediate support for Nifty is placed in the 23,500-23,800 range, while the 24,800-25,000 zone continues to act as a critical resistance band. The weekly chart structure remains encouraging, with a pattern of higher lows intact. A sustained move above 24,800 would be crucial to confirm trend continuation and could potentially open the path toward the 25,500 level, reinforcing bullish momentum.
Bank Nifty Outlook
The Bank Nifty closed near the 56,000 mark and is approaching a key resistance zone of 56,500-57,000, which is also close to its 200-day EMA. Immediate support is seen in the 54,500-55,000 range.
| Support Zone | Resistance Zone |
|---|---|
| 54,500-55,000 | 56,500-57,000 |
A decisive breakout above resistance levels could further strengthen bullish momentum in the banking space and support the broader market rally.
Weekly Stocks to Buy or Sell
- Indian Railway Finance Corp: Buy at ₹103-106, target price of ₹111, stop loss of ₹98.
- Polycab India: Buy at ₹8040-8070, target price of ₹8300, stop loss of ₹7900.
- Bajaj Finance: Buy at ₹921, target price of ₹965, stop loss of ₹900.
Investor Takeaway
Investors should remain cautious and closely watch for any signs of de-escalation in tensions.
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