The Secret to Profiting in a Volatile Market

The Nifty 50 index is currently trading within a range of 23,800 to 24,800. Despite recent market volatility, the index has shown resilience, closing above its monthly support levels. Experts recommend buying Infosys, SBI, and National Aluminium as promising stocks for potential gains.

CONTENTS:

The Secret to Profiting in a Volatile Market

Dongre Recommends Infosys, SBI, National Aluminium

Stocks to Consider: Ganesh Dongre Recommends Infosys, SBI, and National Aluminium

The Secret to Profiting in a Volatile Market Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, has shared his stock picks for investors, highlighting opportunities amidst the current market fluctuations. Given the Nifty 50 index’s ongoing oscillation between 23,800 and 24,800, Dongre’s recommendations aim to leverage key market levels in this volatile environment.

Current Market Snapshot

The Secret to Profiting in a Volatile Market The Nifty index remains range-bound, fluctuating within 23,800 to 24,800. This movement is partly influenced by recent global events, such as the U.S. presidential election and the Federal Reserve meeting. The index closed at 24,148 last week, showing cautious resilience. Technical indicators like the Head and Shoulders pattern on the daily chart reveal a new low at 23,800, with additional support at 23,500. A breakout from this range could signal the market’s future trajectory.

Support Level: 23,800
Resistance Level: 24,800-24,900

Recommended Stocks

1. Infosys Ltd. (INFY)
– Buy Price: ₹1,830
– Target Price: ₹1,900
– Stop Loss: ₹1,260

Dongre views Infosys as a robust IT stock, driven by solid fundamentals and rising demand for digital services.

2. State Bank of India (SBIN)
– Buy Price: ₹843
– Target Price: ₹885
– Stop Loss: ₹815

SBI stands out for its resilience, benefiting from strong fundamentals, enhanced asset quality, and loan growth.

3. National Aluminium Co. Ltd. (NATIONALUM)
– Buy Price: ₹238
– Target Price: ₹270
– Stop Loss: ₹220

Positioned strongly in the metals sector, National Aluminium is set to gain from rising aluminium demand, which could support earnings growth.

Conclusion

The Secret to Profiting in a Volatile Market Dongre advises investors to closely monitor support and resistance levels, with stocks like Infosys and SBI presenting potential for profit even amid market volatility.

Buy or Sell: Ganesh Dongre Recommends Three Stocks for Monday

The Secret to Profiting in a Volatile Market Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, believes the Nifty index remains confined within a trading range of 23,800 to 24,800. A breakout above or below this zone is expected to determine the market’s next phase, guiding both bullish and bearish trends.

Weekly Market Overview

The Secret to Profiting in a Volatile Market Despite global events like the U.S. presidential election and the Federal Reserve meeting, the Nifty index ended the week at 24,148. While the index tested critical support at 23,800 early in the week, it rebounded and moved toward the resistance zone between 24,600 and 24,800. The surprise re-election of Mr. Trump as U.S. president initially boosted sentiment, but profit-taking led to a pullback to around 24,200 by week’s end.

The market struggled to break through resistance levels at 24,600–24,800, leading to increased profit-booking and a lack of sustained bullish momentum. On the daily chart, a Head and Shoulders pattern formed, creating a new low at 23,800, with the next key support at 23,500. If the Nifty stays above this level, resistance could shift to 24,800–24,900 in the coming sessions.

Bank Nifty Overview

The Secret to Profiting in a Volatile Market The Bank Nifty index traded within a narrow range between 51,000 and 52,500 during the week but showed resilience by staying above the crucial 50,500 level. A breakout above 52,000 could signal more bullish momentum, with resistance levels at 53,500 and 55,000.

Conclusion

The Secret to Profiting in a Volatile Market Despite some market volatility, both the Nifty and Bank Nifty indices closed above their monthly support zones, maintaining a generally positive outlook. Investors are advised to closely monitor key support and resistance levels as they assess trading opportunities in the upcoming sessions.

Stocks to Buy on Monday

1. Infosys Ltd. (INFY)
– Buy at ₹1,830
– Target Price: ₹1,900
– Stop Loss: ₹1,260

2. State Bank of India Ltd. (SBIN)
– Buy at ₹843
– Target Price: ₹885
– Stop Loss: ₹815

3. National Aluminium Co. Ltd. (NATIONALUM)
– Buy at ₹238
– Target Price: ₹270
– Stop Loss: ₹220

Buy or Sell: Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, recommended buying RBL Bank and Syrma SGS Technology on November 4.

The Secret to Profiting in a Volatile Market The Nifty 50 index concluded the week at 24,304, reflecting notable volatility as traders navigated through market dynamics. As the monthly expiry approached, a short-covering rally provided a brief respite, enabling the index to climb nearly 500 points, reaching resistance levels around the 24,700-24,800 zone.

Weekly Trading Summary

The Secret to Profiting in a Volatile Market The week began with a gap-down opening on Monday, pushing the index to test the critical support level at 24,000. A rebound followed, bringing the Nifty 50 back toward the 24,600-24,800 resistance zone, but profit booking ultimately pulled the index back to around 24,200.

Despite multiple attempts to break through the resistance at 24,600-24,800, the market struggled to maintain upward momentum, leading to increased profit-taking. On the daily chart, a head and shoulders pattern still suggests potential bearish movements. If the index remains below the 24,800-24,900 neckline, it could signal further selling pressure, with targets in the 23,500-23,800 range. The first support level is at 24,000, and failure to reclaim the neckline above 24,800 could lead to further declines.

Immediate resistance is at 24,800, with support at 24,000 and 23,500 for the upcoming weeks.

Bank Nifty Performance

The Secret to Profiting in a Volatile Market The Bank Nifty followed a similar pattern to the broader market, opening with a gap down on Monday. It attempted a rally toward the 52,000 resistance but lost those gains and closed near the support zone of 51,000. A drop below 52,000 indicates increasing bearishness, requiring caution for traders. Upcoming support levels for the Bank Nifty are 50,500 and 49,500.

Conclusion

The Secret to Profiting in a Volatile Market Despite initial volatility, both the Nifty 50 and Bank Nifty indices closed above their respective monthly support zones, maintaining a generally positive outlook. Investors are advised to closely monitor key support and resistance levels as they evaluate trading opportunities in the coming sessions.

Stocks to Buy on Monday

1. Syrma SGS Technology
– Buy at ₹499
– Target Price: ₹560
– Stop Loss: ₹475

2. RBL Bank
– Buy at ₹176
– Target Price: ₹185
– Stop Loss: ₹170