Nifty at key support, trend remains weak: Analysts

Benchmark Nifty is trading near its 200-day moving average, a key support, but the overall trend is weak. Technical analysts recommend shorting on pullbacks toward the 23,700 resistance zone. As per charts, stocks like Infosys, Info Edge, TCS, ICICI Bank, Safari Industries, SBI, HAL, Concor, Bhel, and Indian Hotels show strong potential.

JATIN GEDIA
TECHNICAL RESEARCH ANALYST, SHAREKHAN

Where is Nifty headed?
Nifty is likely to decline towards 23,180, which coincides with the 61.82% Fibonacci retracement level of the June–Sept rally from 21,281-26,277. Currently, Nifty is hovering around its 200-day moving average of 23,555, which may provide some temporary relief. However, the overall trend continues to be weak and pullbacks, if any, towards the immediate resistance zone 23,675–23,700 should be used for shorting. As per options data, highest builtup on the Put side is at 23,000 strike followed by 23,500 strike implying that if 23,500 is breached then the next support comes in only at 23,000, in line with our technical targets.

What should investors do?
IT could be the place to hide during this volatile phase. Hotel stocks are doing good with the wedding season round the corner. Buy Indian Hotels at Rs 741 with a stop loss of Rs 719 for a target of Rs 775. Buy Safari Industries at Rs 2,333 with a stop loss of Rs 2,150 for a target of Rs 2,520 – 2,640.

Sell IndusInd Bank Nov futures at Rs 1,020 with a stop loss of Rs 1,065 for a target of Rs 950. Sell Crompton Greaves Consumer Nov futures at Rs 372 with a stop loss of Rs 381 for a target of Rs 349-341.

SAMEET CHAVAN
HEAD RESEARCH - TECHNICAL & DERIVATIVES, ANGEL ONE

Where is Nifty headed?
Despite oversold conditions across various indicators, we do not see any possibility of a sustainable relief. Overhead resistance is seen at 23,900– 24,000, while a stiff hurdle is observed around 24,350–24,500 zone — the higher range of the past three weeks. We may see immediate support of 23,200 being challenged in the early part of the truncated week. However, this time we see Nifty extending this correction mode in the sub-23,000 territory.

What could investors do?
The way most of the stocks have corrected, they may appear at a mouth-watering levels, but we advise not to go for any kind of bottom-fishing. Banking finally seems to have succumbed to the overall sell-off. Kotak Bank is poised for further downside. The breakdown on the daily chart indicates further downside towards Rs 1,628. Stop loss to be placed at Rs 1,726. Also, the metal rally seems to have fizzled out. Tata Steel confirmed a decisive break below 89-EMA on weekly chart coupled with the formation of the lower top lower bottom, indicating further weakness. Traders can short on a bounce around Rs 142-144 for a target of Rs 131. Stop loss can be placed at Rs 148.

SACCHITANAND UTTEKAR
VP- TECHNICAL & DERIVATIVES, TRADEBULLS SECURITIES

Where is Nifty headed?
Last week Nifty declined for five consecutive sessions. However, it found support near its 200-day moving average after a 9% correction, aligning with a key channel pattern support. Positive RSI divergence on daily scale suggests weakening bearish momentum, though confirmation is awaited. Options data indicate a narrower range of 23,700– 23,300, with firm resistance at 24,000, reflecting continued bearish sentiment in the short term. India VIX cooling from 19 to 13 signals reduced selling pressure, potentially stabilising trading conditions. The Nifty is likely to trade in 24,000–23,300 in the near term.

What should investors do?
Nifty may signal a trend reversal above 24,140, but stronger price confirmation is needed for aggressive bullish positions. As earnings season concludes, IT, banking, and financial sectors remain in focus, likely benefiting from global rate cuts. Consumer sectors may improve margins despite inflation and geopolitical concerns. Nifty PSE and financial services show resilience, while realty, pharma, and auto could lag further. Infosys, Info Edge, TCS, ICICI Bank, SBI, HAL, Concor, Bhel, and Indian Hotels are poised for long-term gains. This phase presents selective opportunities in quality stocks, especially within outperforming and defensive sectors.