Tech View: A break above 24,500 could take Nifty to 25,000

What should investors do?

Past five week’s sharp up-move of 15% has hauled the weekly stochastic oscillator in overbought territory (at 95). Thus, the possibility of a temporary breather at higher levels cannot be ruled out ahead of the budget and the June quarter . Hence, any dip should not be construed as negative. Instead, it will be a buying opportunity as key is at 23,700. Sectorally, BFSI, IT, oil & gas, capital goods, infra, pharma, and PSU are expected to do well. In large-caps, Reliance, , , , , L&T, , and look good for 5-8% gain; while in midcaps, CIE India, AB Fashion, , , , , KPIL, IRFC, NCC, Affle look good for 10-12% upside.

AJIT MISHRA, SVP-RESEARCH, RELIGARE BROKING

Where is Nifty headed this week?

The markets kicked off the new month positively, continuing the uptrend. Supported by favourable global cues and rotational buying in leading sectors, the sentiment remained throughout. Technically, Nifty appears slightly overextended after a two-week rise from a low of 23,350 to a recent high of 24,400. Therefore, some consolidation is expected early in the week, with strong support around the 23,700-24,000 range. A decisive above 24,500 could indicate the next upward move towards the 25,000 .

What should investors do?

With the earnings season approaching and heightened stock-specific volatility expected, investors are advised to focus on , particularly in sectors such as energy, FMCG, and pharma, for long positions; while remaining selective in others. At the same time, given the continued outperformance of broader indices, traders should adopt a disciplined approach now, preferring fundamentally sound stocks and with exit strategies in place. From the F&O universe, we are Bullish on , Apollo Tyre, Britannia, , ICICI Prulife, L&T, , , , Sun Pharma, TCS. Bearish on: Bandhan Bank, Titan, and Zee.

CHANDAN TAPARIA, HEAD TECHNICAL & DERIVATIVES, MOTILAL OSWAL FINANCIAL SERVICES

Where is Nifty headed this week?

Nifty has formed a bullish candle on daily and weekly scales with a higher base which indicates an extension of the ongoing momentum. Till Nifty holds above 24,000 zones, any small decline could be bought for an up-move towards 24,750 and 25,000 zones; while on the downside, key support exists at 24,000 and 23,800 levels. The major trend in Bank Nifty is positive, but we have observed negative divergence on daily scale with relative strength indicator. Now, it has to continue to hold above 52,000 zones to witness a positive move towards 53,350. Holding below 52,000 could change the short-term setup for a consolidative or corrective move in the index.

What should investors do?

Bullish setup is seen in public sector defence, shipping, construction, railway, and also in pharma, energy and realty related sectors. F&O stock wise positive setup seen in BEL, HAL, SBI, Federal Bank, Cummins India, BHEL, ONGC, Reliance, Power Grid, Mphasis, IRCTC, Biocon, Aurobindo Pharma, Glenmark, Sun Pharma, TVS Motor, Trent etc. while some weakness is seen in ZEE Entertainment, Titan and Indiabulls Housing Finance.