Nifty technical analysis: Nifty must defend 23,800 level to retain bullish undertone

After a three-week rally, Nifty has turned bearish on technical charts. Analysts say the index must defend the 23,800 level to retain its bullish undertone; a breach could spark extended profit-taking, dragging it toward the next major support at 23,400.

However, a sustained move above 24,200 could reignite buying momentum, opening the path for the 24,550–24,700 zone. Stocks offering short-term trading opportunities include Bharti Airtel, Godrej Consumer, Grasim, Havells, ICICI Bank, Marico, Sun Pharma, Tata Consumer, Navin Fluorine, Persistent Systems, Aarti Industries, and UltraTech Cement.

RAJESH PALVIYA
HEAD TECHNICAL & DERIVATIVES, AXIS SECURITIESWhere is the Nifty headed this week?
The index formed a small bullish candle with an upper shadow on weekly chart, indicating selling pressure near the 61.8% Fibonacci retracement level of the decline from 26,277 to 21,744 at 24,550. The index is currently positioned near the 200-day moving average support level of 24,050. Key resistance zones are at 24,550 and 24,850, while 23,850 is expected to serve as significant support. If the index sustains a move above 24,200, it may trigger fresh buying momentum, paving the way toward the 24,550–24,700 range. Conversely, a drop below 24,000 could lead to profit booking, pulling the index down toward 23,850–23,500 range.

What should investors do?
Stocks like Navin Fluorine, UltraTech, Grasim, TCS, Tech Mahindra, Persistent, Aarti Industries, and Colgate-Palmolive are likely to do better. Traders can go for a Bull Call Spread for the April 30 weekly expiry. Buy one lot of the 24,100 strike Call at Rs 147 and simultaneously sell one lot of the 24,400 strike Call at Rs 47. This approach limits the net outflow, ensuring a maximum loss of up to Rs 7,500. If Nifty closes above 24,200 at expiry, the strategy will start generating a profit.AJIT MISHRA
SVP-RESEARCH, RELIGARE BROKINGWhere is the Nifty headed this week?
The Nifty’s sharp rebound over the past three weeks has been almost vertical, indicating the possibility of some consolidation before the next major directional move. It will be crucial for the index to hold the 23,800 level to maintain its bullish bias; a breach could trigger extended profit-taking. On the upside, a decisive breakout above 24,400 could reignite bullish momentum, potentially propelling the index toward 24,800.

What should investors do?
Stock-specific opportunities may be abundant on both the long and short sides, with a focus on favourable risk-reward setups. After the recent outperformance, some consolidation may occur in rate-sensitive sectors like banking and financials, but the overall tone remains bullish. Stocks that can be considered for short-term trading include Bharti Airtel, Godrej Consumer, Grasim, Havells, ICICI Bank, Marico, Sun Pharma, Tata Consumer, and UltraTech Cement.

TANMAY SHAH
HEAD OF RESEARCH, SIHL

Where is the Nifty headed this week?
From a technical perspective, the 61.8% Fibonacci retracement level of the previous downtrend is around 24,400, a level at which the market recently reversed. A decisive close above this level is crucial to confirm the continuation of the bullish trend. On the downside, immediate support is at 23,750, with 23,400 serving as a critical support zone. The emergence of tensions between India and Pakistan has shifted market sentiment. However, with India’s strong economic fundamentals, the markets could regain momentum if tensions ease.

What should investors do?
Given the underlying optimism, any short-term corrections should be seen as potential buying opportunities rather than causes for concern. As the Q4 earnings season unfolds, sector-specific trends are likely to emerge, highlighting the importance of a focused investment strategy. Within the large-cap segment, stocks such as Kotak Mahindra Bank, Apollo Hospitals, Chola Finance, and UltraTech Cement appear fundamentally robust. In the mid-cap space, Waaree Energies, GMR Airports, and Indus Towers offer promising prospects, while small caps like Globus Spirits, Poly Medicure, and Dr Lal PathLabs demonstrate solid growth potential.