Indian stock market witnessed Nifty rebounding from 24,400, yet facing resistance near 25,000. Analysts suggest stock-specific strategies due to expected volatility. A breakout above 25,000 could propel Nifty towards 25,500, while support lies at 24,400. Metal and consumption stocks show promise, IT and financial stocks are currently under selling pressure.
Nifty ended the week with gains as it bounced back from the key support levels of around 24,400, but it could struggle to cross the threshold of 25,000. Analysts caution that volatility may persist as the index consolidates below 25,000 level, making stock-specific strategies more effective than index-based bets.
AJIT MISHRA
SVP-RESEARCH, RELIGARE BROKING
Where is Nifty headed?
Nifty has rebounded from a low of 24,400 — slightly above the previous swing low of 24,337. It continues to consolidate within a triangle pattern marked by lower highs at 25,153 (Aug 21) and 24,980 (Sept 4). A decisive breakout above 25,000 could trigger fresh momentum, taking the index toward 25,250 and then 25,400. On the downside, 24,280-24,400 zone offers immediate support, with stronger support at 24,150.
Trading strategies for the week:
Traders should avoid aggressive leverage and adopt staggered allocations rather than chasing momentum. Tight risk management around key support levels is essential, particularly with banks and IT, still underperforming. Based on the current technical setup, the following stocks can be considered for short-term trading opportunities: Bullish: Coal India, Dixon, Havells, Hindalco, National Aluminium Co, NMDC, and Tata Steel Bearish: Bandhan Bank, Divis Laboratories, Godrej Properties, HCL Technologies, Indian Energy Exchange, Infosys, Persistent Systems
NILESH JAIN
HEAD – EQUITY TECHNICAL & DERIVATIVE RESEARCH, CENTRUM BROKING
Where is Nifty headed?
Nifty staged a smart recovery, closing above the 21-DMA at 24,700, but faced resistance near the 50-DMA (24,980), which also aligns with the upper trendline of a symmetrical triangle. A decisive breakout above 25,000 is key for the next leg higher towards 25,300-25,500. On the downside, immediate support is at 24,520, with a broader range support at 24,400. In the short term, the index is likely to consolidate within the 24,400- 25,000 zone, awaiting a clear breakout.
Trading strategies for the week:
The Metal index has shown a strong breakout, with potential upside in stocks like National Aluminium, JSPL, Tata Steel, and Vedanta Ltd. Consumption stocks are becoming attractive again after recent profit booking. In the telecom space, Bharti Airtel looks promising for positional buying. Meanwhile, IT and financial stocks are facing consistent selling pressure and are best avoided for now.
CHANDAN TAPARIA
HEAD – TECHNICAL RESEARCH & DERIVATIVES, MOTILAL OSWAL FIN SERVICES
Where is Nifty headed?
Nifty formed a bullish candle on the weekly chart along with an inside bar formation; however, it settled below the 50- DEMA on the daily chart and also formed a bearish candle on daily chart, as sustained supply pressure is seen at higher levels. Going forward, as long as the index holds above 24,442, the broader trend is likely to remain range-bound, while key resistances are seen at 25,000 and 25,150 zones. If Nifty manages to hold beyond the 25,000- 25,150 zones, this could open the door for an extended rally towards 25,500. India VIX slipped nearly 8%. Despite this, FIIs remain cautious, with their Nifty index long-short ratio in deeply oversold territory, below double-digit percentages.
Trading strategies for the week:
NMDC has retested its breakout from a “Descending Triangle” pattern with a strong-bodied bullish candle on daily chart. The MACD indicator has given a positive crossover to confirm the upwards momentum. Astral has given a range breakout with higher-than-average traded volumes and surpassed above its 100-DEMA, suggesting a trend reversal, while RBL Bank has broken out from a bullish “Pole & Flag” pattern suggesting a continuation of the uptrend. Traders can also go with a Nifty Bull Call Spread for weekly expiry by buying 1 lot of 24,800 Calls and sell 1 lot of 25,000 Calls to bet on a positive move towards the 25,000 zone.
