Buy or Sell: Ganesh Dongre of Anand Rathi Recommends Three Stocks to Buy on Monday, February 10
Market Recap: Nifty Consolidates Amid RBI’s Rate Cut
Buy or Sell: The Indian stock market saw a week of consolidation as the Nifty traded within a narrow range of 23,300–23,700. The major highlight was the Reserve Bank of India’s (RBI) monetary policy decision, where the Monetary Policy Committee (MPC) unanimously reduced the repo rate by 25 basis points (bps) to 6.25%. This was the first rate cut in five years and was expected to boost market sentiment.
Despite an initial rally, the Nifty closed flat at 23,560, as profit booking took place towards the end of the week. The index remains in a falling channel pattern, which originated in September 2024, making 23,700 a critical resistance level. A breakout above this level could fuel further upside momentum towards 24,100–24,200. However, a drop below 23,300 could pull the index down to the 22,500–22,800 support zone.
The Bank Nifty Index also exhibited range-bound movement between 47,500 and 50,500. A weekly double-bottom pattern helped it breach 50,200, but it failed to sustain above 50,500, keeping investors cautious.
Market Outlook for the Week Ahead
- Nifty Resistance Levels: 23,700, 24,100, and 24,200
- Nifty Support Levels: 23,300, 22,800, and 22,500
- Bank Nifty Resistance: 50,500
- Bank Nifty Support: 47,500
A sustained close above 23,700 in Nifty and 50,500 in Bank Nifty will be crucial for further bullish momentum. Otherwise, markets could face short-term weakness.
Ganesh Dongre’s Top Stock Picks for Monday, February 10
Amid this market scenario, Ganesh Dongre of Anand Rathi has recommended three stocks for investors looking for short-term trading opportunities. Let’s take a look at his stock picks and their key financials.
1. ITC Ltd. (NSE: ITC)
- Buy at ₹430 | Stop Loss: ₹460 | Target: ₹415
- Investment Rationale: ITC has been a defensive bet in uncertain market conditions, with steady earnings growth and a strong presence in the FMCG and cigarette segment. The recent correction offers an attractive buying opportunity for short-term traders.
Key Financial Ratios of ITC:
| Metric | Value |
|---|---|
| Market Cap | ₹5.5 Lakh Cr |
| P/E Ratio | 28.5 |
| Dividend Yield | 3.2% |
| ROE (Return on Equity) | 21.4% |
| Debt-to-Equity Ratio | 0.02 |
2. Marico Ltd. (NSE: MARICO)
- Buy at ₹650 | Stop Loss: ₹685 | Target: ₹635
- Investment Rationale: Marico has been showing resilience despite inflationary pressures on raw materials. The stock is trading at a crucial support level and offers a good risk-reward setup for traders.
Key Financial Ratios of Marico:
| Metric | Value |
|---|---|
| Market Cap | ₹84,000 Cr |
| P/E Ratio | 55.8 |
| Dividend Yield | 1.5% |
| ROE (Return on Equity) | 33.6% |
| Debt-to-Equity Ratio | 0.11 |
3. Sonata Software Ltd. (NSE: SONATSOFTW)
- Buy at ₹766 | Stop Loss: ₹745 | Target: ₹790
- Investment Rationale: Sonata Software has been gaining traction due to strong order inflows and a positive outlook in the IT services space. The stock is nearing a breakout point, making it an attractive buy for traders.
Key Financial Ratios of Sonata Software:
| Metric | Value |
|---|---|
| Market Cap | ₹10,500 Cr |
| P/E Ratio | 32.4 |
| Dividend Yield | 2.1% |
| ROE (Return on Equity) | 27.8% |
| Debt-to-Equity Ratio | 0.05 |
Conclusion: Key Levels to Watch
While the market remains range-bound, traders should keep a close watch on key resistance and support levels. A breakout above 23,700 in Nifty and 50,500 in Bank Nifty could trigger a fresh rally, while a break below 23,300 might lead to further downside pressure.
Ganesh Dongre’s stock recommendations—ITC, Marico, and Sonata Software—offer short-term opportunities, with stop losses and targets clearly defined. Traders should follow disciplined risk management and track market movements closely before making their trading decisions.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions