Nifty began October positively, breaking its losing streak, with experts eyeing sustained levels above 24,820 for further gains towards 25,000-25,170. While the structure remains fragile, sectors like banking, auto, metals, and defence are poised to drive momentum. Traders are advised to stay hedged and consider accumulating on dips around 24,600, with specific stock recommendations highlighted for potential opportunities.
Nifty’s short-term outlook hinges on its ability to sustain above the 24,800-25,000 zone, a key resistance area that could unlock further short-covering if breached. Banking, auto, select metal, and defence stocks are expected to continue driving near-term gains.
SACCHITANAND UTTEKAR
VP – RESEARCH (TECHNICAL & DERIVATIVES), TRADEBULLS SECURITIES
Where is Nifty headed next week?
Nifty snapped its losing streak with a strong, long-range bullish candle that engulfed the declines of the last three sessions and managed to close above the 24,820 hurdle, marking a positive start to October. Seasonality adds weight to the bullish case, with seven out of the past 10 Octobers ending higher, though sharp declines in 2018 (-5%), 2023 (-2.9%), and 2024 (-6.2%) serve as cautionary reminders. On the technical front, the index needs a sustained close above 24,820 to unlock further short covering that could help it reclaim 25,000 and extend towards 25,170. However, the structure remains fragile, as price action is still capped below the 50-DEMA (24,900) and 5-WEMA (24,870). Momentum indicators reflect this indecision with the RSI still below 50 and the ADX showing a lack of directional conviction. Immediate support lies at 24,700, with options data suggesting a firmer base around 24,000. A breach of 24,600, however, could revive selling pressure towards 24,200. Until a decisive reversal is confirmed, traders should stay hedged and avoid complacency.
Trading strategies for the week:
Sectorally, defence names such as Hindustan Aeronautics, Mazagon Dock, BEML, and Bharat Electronics maintained leadership, while metals and mining stocks offered favourable risk-reward setups. Vedanta, Hindalco, and Sandur Manganese are preferred for a 3-4-month horizon, underscoring that opportunities remain in selective positioning even amid volatility.
NAGARAJ SHETTI
SENIOR TECHNICAL RESEARCH ANALYST, HDFC SECURITIES
Where is Nifty headed this week?
A long bullish candle on the Nifty was formed on the daily chart, and a reasonably positive candle appeared on the weekly chart, indicating the formation of a short-term bottom reversal after the recent declines. A bullish chart pattern with higher tops and bottoms has also developed on the weekly chart, and the weekly low of 24,587 could mark the formation of a new higher bottom.
Trading strategies for the week:
The overall bullish chart pattern of the Nifty indicates an upside target of around 25,200-25,300 over the next couple of weeks. Investors may look to accumulate indices or stocks at the current price or on small dips and wait for the upside targets in the coming weeks. Stop losses may be placed around 24,700 level. Sectors with a positive bias include Bank Nifty, PSU Banking, Financial Services, Automobile, Metal, Pharma, and Consumer Durables. Stocks with a positive bias are Axis Bank, Canara Bank, Bank of India, Hero MotoCorp, M&M, Steel Authority of India, Tata Steel, Mahindra & Mahindra Financial, Sun Pharma, and Tata Consumer Products.
MEHUL KOTHARI
DEPUTY VICE PRESIDENT, TECHNICAL RESEARCH, ANAND RATHI SHARES AND STOCK BROKERS
Where is Nifty headed this week?
Till last week, the Nifty was in an oversold zone, resulting in a bounce from the support area of 24,600-24,500. However, the index is still not out of the woods. For it to rise further and confirm a base, it needs to sustain above 25,000 on a closing basis for at least a couple of sessions. In such a scenario, short-covering could push the index towards 25,200-25,300, which would act as a decisive hurdle. On the downside, trendline support near 24,500 and the previous swing low of 24,400 remain key zones for potential renewed buying. For Nifty Bank, a close above 55,800 is required. Support lies in the 55,000-54,500 zone, which could act as a cushion in case of any downside.
What should investors do?
Traders and investors should focus on long positions only above 25,000 on the Nifty, while short positions should be avoided. Any dip towards 24,600 can be monitored for potential buying opportunities, with 24,400 acting as a crucial support zone. ITI remains a strong buy in the Rs 315-305 range, with a stop loss at Rs 280 and targets of Rs 355 and Rs 370 over a 3-6-month timeframe.
NTPC can be accumulated in the Rs 345-335 range, with a stop loss at Rs 316 and targets of Rs 376 and Rs 388 over the same period. Additionally, Southern Petrochemicals (SPIC) has been recommended to clients with a buy range of Rs 95-92, a stop loss at Rs 86.8, and a target of Rs 106.9 for a 90-day timeframe.
