Purchase or sell: Anand Rathi's Ganesh Dongre suggests three equities to purchase on Monday, February 3.

Purchase or sell: The Nifty index saw an incredible 1,000-point surge this week, rising from 22,700 to 23,700. The Union Budget 2025, which prioritized increasing economic consumption, was the main driver of this upward trend.

The budget increased discretionary income and benefited consumption-related stocks like Trent, D-Mart, Zomato, and others by introducing a number of beneficial policies for middle-class salaried individuals. Market sentiment consequently improved, and the indices mirrored this hope.

Technically speaking, the 200-day moving average (DMA) is at 24,100, and important levels to keep an eye on are 23,600 and 24,200. Interestingly, the Nifty continues to trade within a descending channel pattern that began in September 2024, with 23,700 serving as a crucial resistance level. To boost investor confidence, the weekly and monthly closes must be above this level.

Short-covering ahead of the monthly expiry and the budget release propelled the index's swift recovery from its gap-down start below 23,000 at the beginning of the week. The Nifty formed a daily higher-low pattern and tested resistance around 23,300 and 23,600.

In the future, the rally may reach the 24,100–24,200 range, which corresponds to the 200 DMA and the high from the previous month, if the Nifty breaks the 23,700 barrier. On the other hand, a daily lower-high pattern and a closing below 23,300 would push the index lower to the next support levels, which are between 22,500 and 22,800. It is recommended that traders use caution and keep a careful eye on these crucial resistance levels. The release of the RBI's monetary policy will be the main event of the upcoming week.

Performance of the Bank Nifty
With a weekly double-bottom pattern, the Bank Nifty Index got off to a great start this week. The index was able to break through its high of 49,600 from the previous week and try to move towards the crucial resistance level of 50,500 thanks to this technical setup. But it was unable to maintain above this resistance zone.

The index stayed range-bound between 47,500 and 50,000 on a weekly basis. There may be more upside potential if a regular higher-low closing pattern forms. Resistance for the next week is at 50,500, while immediate support is at 48,000.

In conclusion
The monthly resistance zones for the Nifty and Bank Nifty were both closed below. The Nifty's 24,250 level and the Bank Nifty's 50,500 level are still important starting points for new long bets. Increased danger to the downside could be indicated by a persistent close below these levels. To predict the future direction of the market, traders and investors should be cautious and keep a close eye on these critical levels.

Stocks for the Week
Target price: ₹6500; buy Trent at ₹6190; stop loss: ₹5800.

Purchase VBL at ₹562; set a stop loss at ₹535; aim for ₹595.

Purchase SBI at ₹766; set a stop loss at ₹745; aim for ₹790.