Stocks to Watch on Monday: Anand Rathi’s Ganesh Dongre Flags 3 Buys Ahead of New Week

New Delhi: Ahead of the first full trading week of the year, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, has recommended three stocks as potential buys for Monday’s session. His picks come as Indian markets ended last week on a strong note, with key indices hitting record levels.

What’s Driving Market Momentum?

The Indian stock market rallied on Friday, with the Sensex finishing higher and the Nifty 50 hitting an all-time high before settling near record levels. Broader market indices, including midcap and smallcap stocks, also reported gains. Analysts say sustained buying interest and positive global cues helped keep sentiment upbeat.

Dongre noted that support levels are holding strong for major indices. He pointed to fresh technical strength in the Nifty 50 after it stayed above the 26,000 zone on a weekly close.

“The Nifty 50 ended the week on a strong note, gaining 1.10 percent to close at 26,328, supported by positive global cues and broad-based buying across sectors. Broader markets outperformed the benchmark, with key indices advancing between 3-6 percent, reflecting healthy market participation. Among sectoral performers, the Metal index led the rally with a sharp 6.3 percent gain, while Oil & Gas, Automobile, Banking, and Power sectors posted solid gains of around 3-4 percent each, highlighting widespread strength across the market,” said Ganesh Dongre.

“The index had earlier formed a strong base around 25,600-25,700 and consistently traded above this support throughout the week, eventually closing near the 26,300 resistance zone. On the monthly chart, Nifty is forming a constructive higher-high structure, indicating a positive outlook for the coming months. Fresh support is now placed at 25,800-25,900, while immediate resistance is seen at 26,600, followed by the 27,000 level. For the near term, Nifty is expected to trade within a new range of 25,700-26,600, with a decisive breakout above 26,600 likely to trigger the next leg of the rally toward 27,000, he added.

Ganesh Dongre also highlighted positive trends in the Bank Nifty, which climbed past 60,000 during the week.

“The index continues to find strong support in the 58,000-58,500 zone, with immediate resistance placed near 61,000. Strength was visible across both PSU and private banking stocks, reinforcing the positive trend in the banking space,” he said.

Which Stocks Did Dongre Recommend?

Steel Authority of India (SAIL): Dongre sees value in Steel Authority of India. He has advised buying shares in a specific price range, with an upside target and defined stop-loss to manage risk. Buy at Rs 145-150, target price of Rs 160, stop loss of Rs 140.

Indian Energy Exchange (IEX): Indian Energy Exchange made the cut as another stock Dongre expects to benefit from continuing market strength. His strategy includes entry, target and stop-loss levels. Buy at Rs 130-135, target price of Rs 148, stop loss of Rs 125.

 HCL Technologies (HCL Tech): In the tech space, HCL Technologies is his third recommendation. Dongre’s target reflects confidence in the sector’s resilience as markets start the year. Buy at Rs 1635-1640, target price of Rs 1700, stop loss of Rs 1600.