Nifty has more room to run; stay selective: Analysts

Technical analysts remain cautiously bullish on the Nifty this week, expecting the index to extend its gains towards the 24,300–25,000 zone if it breaks above key resistance levels, while advising traders to remain selective amid continued volatility. The positive outlook comes after India’s benchmark indices posted gains for a third straight week, supported by easing crude oil prices, although they surrendered most of their intraday gains ahead of the long weekend.

RAJESH PALVIYA

HEAD OF RESEARCH, AXIS SECURITIES

Trading Strategy
For the July 7 expiry, a moderately bullish Call Spread strategy is recommended. Buy one lot of the 24,100 Call option at a premium of Rs 195–175 and simultaneously sell one lot of the 24,400 Call option at a premium of Rs 75–85. The strategy has a break-even point at 24,220, with a maximum potential loss of Rs 7,800 and a maximum profit of Rs 11,700.

TOP STOCK PICKS

TVS Motor: Buy | CMP: Rs 3,569.70 | Target: Rs 3,700– 3,720 | Stop loss: Rs 3,490

TVS Motor has broken above a minor double-top formation and its price channel is on strong volumes. The daily RSI has moved above 60, while fresh long accumulation, reflected in a 3.5% rise in price and a 0.1% increase in open interest, points to strengthening bullish momentum.

Samvardhana Motherson International: Buy | CMP: Rs 151.70 | Target: Rs 160–162 | Stop loss: Rs 144

The stock rallied 4.9% on Thursday alongside a 0.8% decline in futures open interest, signalling a classic short-covering rally. Weekly and monthly breakouts, backed by the highest single-day volume and price gain of the month, reinforce the ongoing structural uptrend.

Agencies

ROHAN SHAH
TECHNICAL ANALYST, ASIT C. MEHTA INVESTMENT INTERMEDIATES

Trading Strategy
The index has been consolidating within a corrective trend since April 2026, with the 20-week EMA continuing to cap upside attempts. A breakout above 24,300 would improve the technical outlook and open the door for further gains. Buy Nifty futures above 24,300, with a stop loss below 24,000 and targets of 24,800–25,000.

TOP STOCK PICKS
Oberoi Realty: Buy | CMP: Rs 1,749 | Target: Rs 1,930 | Stop loss: Rs 1,650

Oberoi Realty has broken out of an inverse head and shoulders formation, confirming a bullish reversal. The breakout, supported by robust volumes and improving momentum, indicates the potential for further upside.

Aurobindo Pharma: Buy | CMP: Rs 1,555 | Target: Rs 1,725 | Stop loss: Rs 1,475

Aurobindo Pharma is expected to continue its outperformance. The stock has broken out of a multi-month cup-and-handle pattern on strong volumes, indicating the potential for sustained upward momentum.

SUDEEP SHAH
HEAD - TECHNICAL & DERIVATIVE RESEARCH, SBI SECURITIES

Trading Strategy
With markets trading in a broad range amid sharp volatility, traders should refrain from overleveraged bets, while investors should adopt a buy-on-decline approach in quality stocks with strong technical setups. Go long on Nifty only on a breakout above 24,200, with a stop loss at 23,950 and a target of 24,650. From a sectoral perspective, select private banks, financials, pharma, healthcare, tourism and auto stocks are expected to perform well, while Nifty IT, CPSE, PSE and metals are expected to remain under pressure and continue their underperformance in the near term.

TOP STOCK PICKS
Vijaya Diagnostic Centre: Buy | CMP: Rs 1,367 | Target: Rs 1,490– 1,550 | Stop loss: Rs 1,300

The stock is trading above its key moving averages across timeframes, reflecting sustained bullish momentum. After a six-week consolidation, it has broken out strongly, with buying emerging on every dip, while its relative strength against the diagnostics sector and the broader market remains favourable.

Mahindra & Mahindra Financial Services: Buy | CMP: Rs 328 | Target: Rs 344–350 | Stop loss: Rs 316

The stock has broken out of a four-week consolidation and is holding firmly above its key moving averages. Buying on dips, rising volumes, supportive momentum indicators and improving relative strength against the broader market suggest further upside potential.