Nifty: Nifty bullish, could touch 23,800: Analysts

Both daily and weekly technical charts indicate a continuation of the current bullish market trend, with Nifty expected to rise to 23,400–23,800 range, according to technical analysts. Stocks like ICICI Bank, SBI, Mphasis, Reliance Industries, Oberoi Realty, DLF, JSW Steel, Tata Steel, PFC, Bharti Airtel, and BHEL have formed bullish patterns, presenting potential short-term trading opportunities for investors.

RAJESH PALVIYA
HEAD – TECHNICAL DERIVATIVES, AXIS SECURITIES

Where is Nifty heading this week?
On weekly chart, the index has formed a long bullish candle. The FII long-short ratio stands at 0.47, indicating short-covering by FIIs. The index has closed above the declining channel from its all-time high of 26,277 on weekly chart, signaling the potential for further upward movement towards 23,800 and 24,000. On the downside, support levels are placed at 23,000 and 22,800. A breakout above 23,450 could trigger new buying, driving the index towards 23,800- 24,000 range. Conversely, a drop below 23,000 may bring selling pressure, potentially pulling the index down to 22,800-22,600 range.

What should investors do?

Investors can focus on stocks like BPCL, NTPC, Tata Power, Bajaj Finance, HAL, L&T, Indigo, and ICICI Bank. Traders can initiate a Bull Call Spread strategy of March 27 weekly expiry – buying one lot of 23,350 Calls at Rs 141 and simultaneously selling one lot of 23,600 Calls at Rs 41. Net outflow or maximum loss will be restricted at Rs 7,500. Nifty on expiry if it closes above 23,450, the strategy will start making a profit; however, as the risk is limited, the profit is also limited. The maximum gains will be restricted at Rs 11,250 as the gains of long 23,350 strike Calls will be offset by the sold 23,600 strike Calls if Nifty closes above 23,600 on expiry.

NAGARAJ SHETTI
SENIOR TECHNICAL ANALYST, HDFC SECURITIES

Where is Nifty heading?
Sharp upside momentum continued for the fifth consecutive session on Friday and Nifty closed higher. A long bull candle was formed on the daily chart with a minor upper shadow. This chart pattern indicates a continuation of sharp upside momentum in the market. The initial hurdle of a down-sloping trend line has been broken decisively on the upside around 23,000 and 23,200 as per daily and weekly charts, respectively. A long bull candle was formed on the weekly chart with gains of around 4.25%, which is the highest week-onweek gains since 2021. What should investors do?
A decisive upside breakout of weekly resistances of 23,400 could open the next upside target of 23,800 and higher in coming week. However, any consolidation or minor dip from here could be a buying opportunity down till 23,000 levels. Stocks such as ICICI Bank, SBI, Mphasis, Reliance, Oberoi Realty, DLF, JSW Steel, Tata Steel, BPCL, HPCL, REC and PFC have formed bullish patterns on charts.

AJIT MISHRA
SVP-RESEARCH, RELIGARE BROKING

Where is Nifty headed?
Nifty’s recent breakout from the 22,250-22,650 range has propelled it to a crucial resistance level around 23,400. A decisive move beyond this level could set the stage for further gains towards 23,800-24,100 zone. On the downside, 22,750- 23,000 is expected to provide strong support.

What should investors do?
With no major domestic economic events scheduled, focus will remain on the expiry of March derivatives contracts and FII activity. The US markets will be closely watched. Participants are advised to adopt a “buy on dips” strategy, focusing on sectors that have demonstrated consistent strength. Banking, financials, metals, and energy stocks remain preferred picks, while selective opportunities can also be explored in PSU and auto stocks. Given the sharp rebound in broader markets, midcap and smallcap stocks may offer potential trading opportunities, though aggressive positioning should be avoided. Traders can consider stocks such as Bharti Airtel, BHEL, Chambal Fertilisers, HDFC Bank, IOC, Kotak Bank, NHPC, and Sail for short-term trading opportunities.