Nifty Index Shows Signs of Sideways to Bullish Trend Amid Market Consolidation
As the Indian stock market continues to reel under global uncertainties, the Nifty index is gradually transitioning towards a sideways to bullish trend. The index has been holding key support levels and consistently attracting buying interest during periods of decline, according to various market analysts.
Market Overview
On Thursday, experts foresee the Indian market consolidating, reflecting the impact of weak global cues. The India VIX, commonly referred to as the market’s fear barometer, has experienced a slight dip of 1.56%, settling at 15.42. This decline indicates a moderated risk perception among investors.
Dhupesh Dhameja, a Derivatives Analyst at SAMCO Securities, pointed out that the Nifty index is currently positioned below its short-term moving averages. This positioning leaves it susceptible to sudden volatility spikes. He emphasized that the 22,800 level has emerged as a crucial support zone, furthering the index’s ongoing recovery efforts.
Resistance and Support Levels
Dhameja noted that while the Nifty index is on an upward trajectory, it must decisively overcome the 23,200 resistance level. If this barrier is not breached, potential upward movements are likely to encounter significant resistance due to persistent call writing and certain technical challenges.
The 22,900 to 22,800 range has become a vital inflection zone as put writers maintain their positions. Given the current market conditions and uncertainties, Dhameja recommends a “buy on dips” strategy, advising traders to keep an eye on the immediate resistance at 23,200 and the key support at 22,800. A breakout beyond this range will be essential in defining the market’s next directional trend.
Expert Stock Recommendations
Traders with a short-term investment perspective may look to a selection of stocks suggested by market analysts from the Futures and Options (F&O) basket and the cash market:
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Jaynit Vora, CMT – Research Analyst, IIFL suggests:
- UPL: Buy | Target Rs 685 | Stop Loss Rs 625
- Hindalco: Buy | Target Rs 653 | Stop Loss Rs 602
- InterGlobe Aviation: Buy | Target Rs 4620 | Stop Loss Rs 4254
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Kunal Bothra, Market Expert, advises:
- UPL: Buy | Target Rs 675 | Stop Loss Rs 630
- Redington Ltd: Buy | Target Rs 260 | Stop Loss Rs 233
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Nooresh Merani, Independent Technical Analyst, provides recommendations for:
- HDFC Bank: Buy | Target Rs 1780 | Stop Loss Rs 1710
- Jio Financial: Buy | Target Rs 250 | Stop Loss Rs 220
- Welspun Living: Buy | Target Rs 140 | Stop Loss Rs 117
Conclusion
As the Nifty index navigates through its current phases, traders are encouraged to pay close attention to support and resistance levels, implementing a measured approach based on expert recommendations. With the prevailing volatility in the market, a “buy on dips” strategy may provide an advantageous position for investors.
Disclaimer: The stock recommendations made by experts reflect their personal views and do not represent the views of Economic Times or any associated entities.
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