The Indian stock market ended the truncated trading week on a weaker note, with Sensex declining 0.65% to close at 74,294.46 and Nifty slipping 0.22% to settle at 23,346.40. According to reports from Mint, concerns over the near-term inflationary impact of higher energy costs and their potential effect on economic growth continued to weigh on investor sentiment. Broader market indices, including the midcap and smallcap segments, ended largely flat after a volatile week, pausing following several weeks of strong outperformance.
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, has recommended three stocks for Monday trading. As reported by Mint, the recommended stocks include DLF with a buy price of ₹645-650, target price of ₹680, and stop loss of ₹630. PN Gadgil Jewellers is suggested at ₹600-605 with a target of ₹640 and stop loss of ₹580. Hindustan Petroleum Corp is recommended at ₹351-355 with a target of ₹368 and stop loss of ₹346. These recommendations come amid ongoing Middle East tensions and elevated crude oil prices affecting market sentiment.
According to Dongre's analysis reported by Mint, the Nifty had entered an overbought zone following its sharp rally, increasing the possibility of profit booking and sideways consolidation. The index continues to face difficulty sustaining above the 24,500–24,600 resistance zone, which remains a crucial technical barrier as it coincides with the 200-day EMA. The Bank Nifty also remained under selling pressure and is currently trading below its 200-day EMA around 56,600, a level the index has breached after a prolonged period.
As reported by Mint, the Nifty is currently holding the previous June month low zone of 23,000–23,250, making this an important support area for the coming week. For the Bank Nifty, 55,000–55,300 remains the key support zone while 56,500–57,000 is the important resistance area. A decisive and sustained breakout above 57,000 would improve the technical setup for the banking index, while sustained trading below the 200-day EMA could keep selling pressure intact.
According to Dongre's analysis reported by Mint, market participants will closely monitor the Fed's stance on inflation, interest rates and economic growth. Any shift in expectations regarding future rate moves could influence global liquidity, bond yields and risk appetite. The expert emphasizes that traders should remain cautious and closely monitor global cues, crude oil prices and upcoming central-bank commentary before taking aggressive positions. Geopolitical uncertainties remain elevated, particularly around US–Iran tensions and developments in the Middle East, which could affect crude oil prices and global risk appetite.
