Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, has made notable stock recommendations for investors looking to navigate the market on October 21, 2024. His insights come as the Nifty 50 index shows signs of a fresh breakout, with expectations of reaching near-term targets between 22,800 and 22,900.
Market Overview
The Nifty index recently bounced back from a crucial support level of 24,800 but faced challenges breaking through resistance at 25,300. The market has been characterized by volatility due to geopolitical tensions and new regulations from SEBI affecting the derivatives market. Despite these challenges, both the Nifty and Bank Nifty indices managed to close above their respective monthly support zones, indicating a generally bullish bias among investors.
Recommended Stocks
Dongre has identified three stocks that he recommends for purchase:
- DLF: Buy in the range of ₹865-875 with a target price of ₹915 and a stop loss set at ₹840. DLF’s strong fundamentals and market positioning make it a favorable choice amidst current market conditions.
- LIC Housing Finance: Suggested buy price is between ₹615-620, targeting ₹650 with a stop loss at ₹590. The company’s robust performance in the housing finance sector positions it well for growth.
- National Aluminium Company Limited (NALCO): Dongre recommends buying at ₹232, with a target price of ₹255 and a stop loss at ₹215. NALCO’s performance in the metals sector is expected to benefit from increasing demand.
Technical Analysis
The recent trading week saw the Nifty index open with a gap-up but subsequently faced profit-booking pressure. The critical near-term support remains at 24,800, while resistance is noted at 25,700. A sustained close above this resistance could trigger further upward movement towards previous highs.In terms of Bank Nifty performance, closing above the key level of 52,000 suggests potential upward movement towards 53,000-53,500 if momentum continues.
Conclusion
Investors are advised to closely monitor these recommendations while keeping an eye on key support and resistance levels as market dynamics evolve. The cautious sentiment due to external factors necessitates careful consideration before making investment decisions.
Disclaimer: The views and recommendations provided in this article are those of individual analysts or brokerage firms and should not be construed as investment advice. It is strongly recommended that investors consult with certified financial experts before making any investment decisions as market conditions can change rapidly.
