Nifty could move higher towards 24,857–25,000: Analysts

Indian markets, which have shown resilience even amid geopolitical tensions, are likely to emerge from the current consolidation phase, with Nifty expected to move towards the 24,857–25,000 range in the coming days, according to technical analysts. However, a breach below the crucial support zone of 24,200–24,150 could trigger a deeper correction towards 23,800. Stocks such as HCL Tech, Coforge, Indian Oil, Reliance Industries, DLF, Godrej Properties, Bharti Airtel, Grasim, HDFC Bank, BEL, Abbott, CEAT, Navin Fluorine, and Bharat Dynamics are expected to show relative outperformance.

JATIN GEDIA
TECHNICAL RESEARCH ANALYST, MIRAE ASSET SHAREKHAN

Where is Nifty headed this week?
Nifty has been consolidating in the range of 23,847–24,589 after a 12% rally from the panic low of 21,743. We believe the consolidation has matured, and Nifty is now poised for resumption of an up-move towards 24,857–25,000 during the week. Despite geopolitical tensions, Nifty continues to climb showing resilience and suggesting that the Bulls have an upper hand. Supportive global cues and renewed buying interest from FIIs in the cash market are positive. Breach of crucial support zones of 24,200–24,150 shall lead to a deeper correction towards 23,800. Traders should continue to hold bullish bets with a trailing stop loss at 24,150.

What should investors do?
IT, oil & gas, PSU banks and realty sector stocks are likely to lead the next leg of the up-move. Traders should create a short-term diversified portfolio with stocks like HCL Tech, Coforge, Mphasis and Wipro, from IT sector. IOC, RIL and GAIL from oil & gas. SBI, Bank of India, Union Bank from PSU banks, and stocks like DLF and Godrej Properties can also be considered to be part of that portfolio.

SUDEEP SHAH
HEAD- TECHNICAL & DERIVATIVE RESEARCH, SBI SECURITIES

Where is Nifty headed this week?
The 200-day moving average (DMA) zone of 24,050-24,150 will act as immediate support. Below 24,050, the 20-day exponential moving average (EMA) at 23,750 will act as the next crucial support. On the upside, the 24,550-24,600 zone will act as a key hurdle. A sustained move above 24,600 could trigger a sharp rally towards 24,850, with the next target placed near the 25,100 mark. We expect the Index to consolidate with a positive bias.

What could investors do?
The current consolidation phase presents a strong opportunity for long-term investors to accumulate quality large-cap and mid-cap stocks at attractive prices in a staggered manner. We recommend traders focus on banking and financial, defence, cement and tyre spaces, which we expect to show relative outperformance in the coming weeks. Select large-caps such as Divis Lab, Bharti Airtel, Grasim, HDFC Bank, HAL, and IOC; and midcaps such as BEL, Abbott, CEAT, Navin Fluorine and Bharat Dynamics could witness relative outperformance

SAMEET CHAVAN
HEAD RESEARCH - TECHNICAL & DERIVATIVES, ANGEL ONE

Where is Nifty headed this week?
Nifty is facing some rejection around 24,400–24,500 for the last 6–7 trading sessions. A solid uptick on Friday beyond this zone was sold into. If there is any aberration on the global or domestic front, we may see a knee-jerk reaction of 500 – 700 points in the coming days. In any scenario, 23,800–23,500 should serve as a strong support zone for Nifty. On the flip side, once the dust settles, the Nifty is likely to reclaim 24,850 and move higher.

What could investors do?
Momentum traders should avoid carrying aggressive bets overnight on either side. One can adopt a stock-centric approach by following strict stop losses. We recommend buying Godrej Properties for a target of Rs 2,425 with a stop loss at Rs 2,145. On the flipside, a lot of midcap counters faced selling pressure on Friday and Aditya Birla Fashion is one of them. The stock sneaked below its 20-day EMA with the negative crossover in the RSI-smoothed oscillator. Aggressive traders can short around Rs 259 for a target of Rs 247. A strict stop loss can be placed at Rs 267.