Nifty Rally: Nifty rally likely to gain steam: Technical Analysts

A V-shaped recovery in equity markets is likely to continue with a bullish gap on daily charts suggesting a barrier at 23,700 levels, and a decisive breakthrough above could trigger bullish sentiment, enabling Nifty to reclaim the pivotal 24,000 level, said technical analysts.

Stocks such as Bajaj Finance, Bharti Airtel, Eicher Motors, Grasim, HDFC Bank, ICICI Bank, BEL, Abbott India, Aditya Birla Capital, Nykaa, Time Techno, ITC Hotels, Nifty and Indigo could witness relative outperformance this week, according to analysts.

SUDEEP SHAH
HEAD – TECHNICAL & DERIVATIVE RESEARCH, SBI SECURITIES

Where is Nifty headed ?

The 23,400-23,350 zone will act as immediate support for the index. Below 23,350, the 50-day EMA at 23,100 will act as the next crucial support. The zone of 23,750- 23,800 will act as a crucial hurdle for Nifty as a prior swing high is placed in that region. Any sustainable move above 23,800 will lead to a sharp upside rally up to the level of 24,100, followed by 24,300 in the short term. Given the current chart structure, the index could consolidate in the coming sessions.

What could Investors do?
The current consolidation phase presents opportunity for long-term investors to accumulate quality largecap and mid-cap stocks at attractive prices. Select large-cap stocks such as Bajaj Finance, Bharti Airtel, Eicher Motors, Grasim, HDFC Bank, ICICI Bank; and midcaps such as BEL, Abbott, Aditya Birla Capital and Indigo could witness relative outperformance.

SAMEET CHAVAN
HEAD RESEARCH – TECHNICAL & DERIVATIVES, ANGEL ONE

Where is the Nifty headed?
On technical charts, Nifty has demonstrated a notable V-shaped recovery over the past weeks, successfully retesting a crucial resistance at 23,800, which corresponds to the February swing high. This area of resistance temporarily halted the momentum of the index. However, Nifty managed to close last week above the confluence of the 89-day EMA and a bullish gap observed on daily chart, suggesting a strong support. On the flip side, the range between 23,700 and 23,800 remains a formidable barrier for the index, and a decisive break above this could trigger a bullish sentiment, enabling the index to reclaim the pivotal 24,000 level.

What could investors do?
Traders are advised not to get carried away and should avoid aggressive positions. Nykaa is a good buy for a target of Rs 188, with a stop loss at `174.3. Short-term traders can buy Time Techno for a target of Rs 460 with a stop loss of Rs 392.

TANMAY SHAH
RESEARCH HEAD, SIHL

Where is the Nifty headed?
In March, Nifty regained confidence. A wave of FII short covering contributed to the recovery. As we move forward, 23,650 is a key level to watch. A sustained drop below this level could lead to a decline towards 23,200, with 22,800–serving as a strong support in the short term. If the index closes above 23,650, a rally towards 24,200 may be on the cards. As FY26 begins, the F&O segment reflects significantly lighter positions, with persistent short positions of FIIs since September having substantially reduced. For now, key factors such as Q4 earnings and tariff implications will influence market direction.

What could Investors Do?
Banks, NBFCs, infra, travel & tourism stocks are expected to perform well. ICICI Bank, PNB, Indigo, and L&T appear strong in the large-cap space, while ACC, NMDC, and ITC Hotels present opportunities among the mid-caps. In the small-cap segment, KSCL, NCC, and BLS International have solid fundamentals.