The Nifty’s rebound after eight consecutive weekly declines has raised hopes of a recovery. Rupak De said, “Friday’s rebound was a relief rally, not a confirmed reversal.” Analysts suggest a cautious approach, as a move above 22,550 is needed to confirm a trend. Many investors now watch support levels for guidance.
Synopsis
Nifty's recent recovery has generated optimism, but a sustained close above key resistance is crucial for further gains. Analysts suggest a cautious approach with potential accumulation of certain stocks during dips. Key stocks for investment include Aurobindo Pharma and TCS, which display strong price momentum and resilience. Market participants are advised to monitor immediate support levels for Nifty and Bank Nifty.
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The Nifty’s rebound after eight consecutive weekly declines has raised hopes of a recovery, but a decisive move above 22,550–22,650 is needed to strengthen the outlook.
RUPAK DE, SENIOR TECHNICAL ANALYST, LKP SECURITIES
Index Strategy: Friday’s rebound was a relief rally, not a confirmed reversal, with resistance at 22,600– 22,650, and upside capped near 23,000. A break below 22,100 risks a deeper fall towards 20,800–20,200. Reduce longs on recovery, while medium-term participants can accumulate NiftyBEES on dips at Rs 220–235, targeting Rs 300–305 with a stop loss at Rs 200.
Top stocks for the week
Auro Pharma: Buy | CMP: Rs 1,695 | Target: Rs 1,800 | Stop loss: Rs 1,640
Aurobindo Pharma stock continues to form a higher-top, higher-bottom pattern, indicating a positive trend. A hidden positive divergence on the daily RSI suggests the prevailing uptrend could continue.
Go Digit: Buy | CMP: Rs 273 | Target: Rs 300 | Stop loss: Rs 264.
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The stock has broken out of a consolidation range, indicating improving price momentum. A positive divergence on the daily RSI supports the possibility of further short-term upside.
RAHUL SHARMA, DIRECTOR AND HEAD OF TECHNICAL & DERIVATIVES RESEARCH, JM FINANCIAL SERVICES
Index Strategy: Nifty’s positive weekly close after eight consecutive negative closes was encouraging, but a sustained close above 22,550 is needed to confirm a short-term reversal. A breakout could open the way towards 22,800 and 23,125. The preferred approach is to “buy on dips rather than sell on a rise,” with 22,350 and 22,200 as immediate supports. Bank Nifty faces resistance at 55,000– 55,600.
Top stocks for the week
TCS: Buy | CMP: Rs 2,156| Target: Rs 2,300 | Stop loss: Rs 2,075
Strong post-result price action and renewed buying interest in IT make TCS attractive. A sustained move above Rs 2,200 could accelerate its recovery.
Federal Bank: Buy | CMP: Rs 330 | Target: Rs 350| Stop loss: Rs 313.75.
The stock has remained resilient amid volatility and is sustaining above short-term moving averages. Private banks remain attractive on the back of their relative strength.
ANAND JAMES, CHIEF MARKET STRATEGIST, GEOJIT INVESTMENTS
Index Strategy: The Nifty’s biggest intraday recovery since the downtrend began in early August signals potential further gains towards 23,200. A break above 22,630 could con rm an upswing, while a fall below Friday’s 22,295 could drag it to 22,070–21,600. Buy Nifty above 22,630 for 22,800–23,200, with a stop loss at 22,440. Sell, if the index falls below 22,295 with target of 22,070–21,600 with a stop loss at 22,538.
Top Stocks For the week
Coforge: Buy | CMP: Rs 1,865 | Target: Rs 2,160 | Stop loss: Rs 1,659
The stock, which has been in a long-term uptrend since 2017, has faced resistance near Rs 2,000. A breakout above Rs 2,000–2,010 could lift it to Rs 2,200–2,330, while weakness below Rs 1,659 risks Rs 1,520–1,500.
Tanla: Buy | CMP: Rs 501 | Target: Rs 600 | Stop loss: Rs 442
Its 25% sell-off from August peak is easing as it nears May’s lows and a key trendline. A move above the 10-day average could lift it towards Rs 600, while failure risks Rs 442 and Rs 366.
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(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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