Ganesh Dongre of Anand Rathi recommends Infosys and Dr Reddy's as Monday buys
Ganesh Dongre from Anand Rathi recommends buying Infosys at ₹1,600-1,620 (target ₹1,670) and Dr Reddy's at ₹1,200-1,220 (target ₹1,260) following Friday's market decline. The Sensex fell 605 points to 83,576.24 while Nifty dropped 194 points to 25,683.30, marking the fifth consecutive session of losses. Despite concerns over US tariff policies and FII outflows, Dongre maintains a constructive outlook with Nifty support at 25,500-25,600 and recommends a buy-on-dips strategy.
*this image is generated using AI for illustrative purposes only.
Market analyst Ganesh Dongre from Anand Rathi has identified two key buying opportunities for Monday's trading session, as Indian equity markets continue to navigate through a challenging period marked by consecutive losses and global uncertainties.
Market Performance Overview
Indian benchmark indices extended their losing streak to five consecutive sessions on Friday, January 9, with both Sensex and Nifty 50 closing in negative territory. The selling pressure was attributed to renewed concerns over US tariff policies, caution ahead of the Q3 earnings season, and persistent foreign institutional investor outflows.
| Index | Closing Level | Daily Change | Percentage Change |
|---|---|---|---|
| Sensex | 83,576.24 | -605 points | -0.72% |
| Nifty 50 | 25,683.30 | -194 points | -0.75% |
| BSE Midcap | Not specified | Not specified | -0.90% |
| BSE Smallcap | Not specified | Not specified | -1.74% |
According to Dongre, the Nifty 50 began the first week of 2026 with sharp profit booking following statements from the Trump administration proposing a steep 500% tariff on countries purchasing oil from Russia. This global development triggered negative sentiment across markets, with the Nifty closing the week down by 2.45%.
Technical Outlook and Support Levels
Nifty 50 Analysis
Dongre identifies fresh breakout support in the 25,500–25,600 range, suggesting the possibility of a technical rebound in the coming week. The analyst maintains that with midcaps and Bank Nifty also holding key support levels, a bounce towards the psychologically important 26,000–26,200 zone cannot be ruled out.
| Parameter | Level Range |
|---|---|
| Support Zone | 25,500–25,600 |
| Bounce Target | 26,000–26,200 |
| Immediate Resistance | 26,300–26,500 |
Derivatives data supports a range-bound yet constructive outlook, with the highest Call open interest concentrated around the 26,200–26,300 strikes, indicating strong resistance. Heavy Put open interest at the 25,500–25,600 strikes highlights a well-defined support base.
Bank Nifty Technical View
Bank Nifty has experienced profit booking but continues to hold its major support near the 59,000 mark. The index remains well placed above the crucial 58,500–59,000 support band, keeping the broader banking structure intact.
| Level Type | Range |
|---|---|
| Support Band | 58,500–59,000 |
| Resistance Zone | 60,000–60,500 |
| Stronger Hurdle | 61,000 |
Stock Recommendations for Monday
Dongre has provided specific buying recommendations for two stocks, complete with entry levels, targets, and stop-loss parameters:
| Stock | Entry Range | Target Price | Stop Loss |
|---|---|---|---|
| Infosys | ₹1,600-1,620 | ₹1,670 | ₹1,570 |
| Dr Reddy's | ₹1,200-1,220 | ₹1,260 | ₹1,180 |
Market Strategy and Outlook
The analyst maintains an overall positive to constructive market outlook as long as Nifty sustains above 25,600 and Bank Nifty above 58,000. While near-term resistance levels may limit immediate upside, the prevailing structure favors a buy-on-dips strategy.
Dongre advises traders to remain selective, focus on strong sectors, and closely monitor global and geopolitical cues for clearer directional triggers. Given the prevailing uncertainty around tariff-related developments, caution is recommended on higher levels until clarity emerges.
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