Nifty Targets Sideways-to-Bullish Trend Amidst Market Volatility

As the Indian stock market reflects varied investor sentiments, experts indicate that the Nifty index is gradually trending towards a sideways-to-bullish stance. The index continues to maintain key support levels, observed to entice buying interest whenever it dips, suggesting a consolidation phase ahead.

Market Outlook on Nifty

The Nifty index is currently situated below its short-term moving averages, a position that leaves it susceptible to sudden volatility. According to Dhupesh Dhameja, a derivatives analyst at SAMCO Securities, the critical support level is now established at the 22,800 zone, which is expected to reinforce the index’s ongoing recovery efforts.

Despite this bullish outlook, experts caution that any upward movement must surpass the strong resistance level at 23,200. Dhameja points out that continued call writing in this range is likely to pose challenges for the index.

Volatility and Risk Perception

In terms of market sentiment, the India VIX, often referred to as the market’s fear barometer, has recently dipped by 1.56%, settling at 15.42 on Wednesday. This slight decline indicates a moderation in risk perception among investors. Nonetheless, market observers remain vigilant as the Nifty hovers within the critical 22,900–22,800 range, an inflection point where put writers are increasingly active.

Given the ongoing market conditions, Dhameja recommends a "Buy on Dips" strategy. He highlights that immediate resistance is expected at 23,200, while the pivotal support stands at 22,800. A decisive breakout beyond this range will be essential to ascertain the next directional trend for the market.

Expert Stock Picks for Short-Term Traders

In light of the prevailing market dynamics, several experts have curated a list of stocks for traders with a short-term horizon. Here are some recommendations:

Jaynit Vora, CMT – Research Analyst, IIFL:
- UPL: Buy | Target: ₹685 | Stop Loss: ₹625
- Hindalco: Buy | Target: ₹653 | Stop Loss: ₹602
- InterGlobe Aviation: Buy | Target: ₹4620 | Stop Loss: ₹4254
Kunal Bothra, Market Expert:
- UPL: Buy | Target: ₹675 | Stop Loss: ₹630
- Redington Ltd: Buy | Target: ₹260 | Stop Loss: ₹233
Nooresh Merani, Independent Technical Analyst:
- HDFC Bank: Buy | Target: ₹1780 | Stop Loss: ₹1710
- Jio Financial: Buy | Target: ₹250 | Stop Loss: ₹220
- Welspun Living: Buy | Target: ₹140 | Stop Loss: ₹117

Disclaimer

It is important to note that recommendations, suggestions, and opinions shared by the experts are personal views and do not necessarily reflect those of the Economic Times. Investors are advised to conduct their own research before making any financial decisions.

Conclusion

As the Indian market braces for potential fluctuations amid a backdrop of global cues and local factors, maintaining focus on key support levels and prudent investment strategies will be crucial for traders. The Nifty’s ability to navigate through the current resistance and volatility will largely dictate the sentiments for the upcoming trading sessions.

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