Top 3 stocks to buy: Redington, Aster DM, Canara Bank by Ganesh Dongre of Anand Rathi | Targets, stop-loss, market view

Nifty 50 prediction: The 25,500-25,600 zone will be the next significant resistance area to watch, says Ganesh Dongre of Anand Rathi

Stocks to buy | Shares to buy | Ganesh Dongre's stock recommendations: The key benchmark indices of the Indian stock market ended the week on a strong positive note, with the Nifty gaining nearly 0.45% to close at 25,144, while the Bank Nifty witnessed a sharp rally of 3.30%, settling at 61,034. Meanwhile, Brent crude oil prices declined towards $95 per barrel, providing significant relief to global markets. Sectoral performance remained broadly positive, with most major sectors gaining between 1% and 5%. Banking and chemicals emerged as the top-performing sectors, rallying nearly 4% during the week.

Over the previous two weeks, the Nifty had witnessed a sharp recovery of more than 10%, supported by strong buying interest at lower levels. The index rebounded from the 22,200-22,500 support zone, recovered towards its 200-day moving average and subsequently moved above the crucial psychological mark of 25,000. The recovery gained further momentum as the Nifty surpassed its previous monthly high of 24,700 and approached its February 2026 high, indicating a significant improvement in market sentiment.

Stock market prediction for next week

Ganesh Dongre, AVP -- Equity Research at Anand Rathi believes the Indian stock market bias is positive untill the Nifty 50 index is above the psychological 25,000 levels. Ganesh Dongre of Anand Rathi said that 25,500-25,600 zone for the 50-stock index will be the next significant resistance area to watch.

Ganesh Dongre of Anand Rathi said the Nifty 50 index appears to be discounting the possibility of a gradual slowdown in geopolitical tensions following the US midterm election results, particularly after President Trump's party suffered electoral setbacks. Any potential de-escalation in the ongoing conflict could further ease crude oil prices, potentially pushing Brent crude towards its previous monthly lows. Such a development could provide additional support to global equity markets and sustain the ongoing recovery in equities. Nevertheless, India VIX continues to trade around the 16 mark, indicating that volatility remains relatively elevated. Global uncertainties, particularly developments in the Middle East and US-Iran relations, will continue to influence market sentiment.

Nifty 50 prediction

Speaking on the outlook for the Nifty50 index, Ganesh Dongre of Anand Rathi said, the key benchmark index has staged a remarkable recovery from the 22,200-22,500 support zone and has comfortably moved above its earlier resistance levels of 23,200 and 24,700, closing above the important psychological mark of 25,000. Going ahead, the 25,500-25,600 zone will be the next significant resistance area to watch, coinciding with the 78.6% Fibonacci retracement level of the entire decline from the previous year's high of 26,400. A sustained breakout above this zone could further strengthen the bullish outlook and potentially open the door for a move towards fresh highs.

"On the downside, the 24,800-25,000 zone is expected to act as an important support area, particularly as it coincides with the previous breakout zone. A decisive close below 24,800 would weaken the current technical structure and could trigger renewed selling pressure. Furthermore, despite the sharp recovery, the Nifty is approaching overbought territory on the weekly chart," the Anand Rathi expert said.

Dongre went on to add that some consolidation or profit-booking at higher levels cannot be ruled out. From an investment perspective, a buy-on-dips strategy may remain favourable, provided the index continues to hold its crucial support levels.

Bank Nifty prediction

On the outlook for the Bank Nifty index, Ganesh Dongre of Anand Rathi said, the key index witnessed strong buying interest during the week, gaining approximately 3.30% and closing comfortably above the psychological mark of 61,000. The index has moved beyond its significant resistance zone around 59,100, which coincides with the 78.6% Fibonacci retracement level of the previous correction.

"A decisive and sustained breakout above 61,000 would further strengthen the near-term technical structure and could open the door for an upside move towards the 62,000 mark. On the downside, the 59,500 level will remain an important support to monitor," Dongre said.

Ganesh Dongre's stock market views

Ganesh Dongre of Anand Rathi finally said that despite the sharp recovery over the past few weeks, the Nifty and Bank Nifty are now approaching crucial technical resistance zones, where some consolidation or profit-booking cannot be ruled out. The strong rebound from oversold levels has significantly improved market sentiment. However, the sustainability of the ongoing rally will largely depend on the Nifty's ability to cross the 25,500-25,600 resistance zone and the Bank Nifty's ability to sustain above 61,000. Meanwhile, movements in crude oil prices and developments on the geopolitical front, particularly regarding Middle East tensions and US-Iran relations, will remain key factors influencing the next directional move in equity markets. A buy-on-dips approach may remain favourable as long as the broader support structure remains intact.

Ganesh Dongre's stock recommendations today

Regarding stocks to buy, Ganesh Dongre of Anand Rathi recommended buying these three shares: Redington, Aster DM, and Canara Bank.

1] Redington: Buy at ₹350 | Target ₹380 | Stop-loss ₹340;

2] Aster DM: Buy at ₹720 | Target ₹760 | Stop-loss ₹710; and

3] Canara Bank: Buy at ₹130 | Target ₹140 | Stop-loss ₹125.