Nifty ready for 24,500-24,750 levels after breakout rally: Analysts

The Nifty enters the new trading week with momentum on its side after outperforming most Asian peers on Friday and breaking out of its recent consolidation range. Analysts expect the rally to extend towards 24,500-24,750, with some seeing the potential for 25,000, although they believe the index must first overcome resistance around the 24,350-24,600 zone. The index closed at 24,334 on Friday.

NAGARAJ SHETTI
SENIOR TECHNICAL RESEARCH ANALYST, HDFC SECURITIES

Trading Strategies
One may look to buy Bank Nifty July Futures around 58,591-58,500 for an upside target of 59,600 by the July 28 expiry. Place a stop loss at 58,000. One may buy the Nifty 24,500 CE of the July 28 expiry around 137-125 for a target of 250. Place a stop loss at 75. TOP STOCK PICKS
Bajaj Finance: Buy at Rs 1,055 | Target: Rs 1,115 | Stop loss: Rs 1,020 | Timeframe: 1-2 weeks

The stock is poised for a breakout above previous highs, supported by robust volumes and a positive daily RSI. Sona BLW

Precision Forgings: Buy at Rs 705 | Target: Rs 752 | Stop loss: Rs 680 | Timeframe: 1-2 weeks
Bullish chart structure, strong breakout volumes and a positive daily RSI support the uptrend.

MEHUL KOTHARI
DVP – TECHNICAL RESEARCH, ANAND RATHI SHARE AND STOCK BROKERS

Trading Strategy
While the broader trend remains positive, the outlook is cautious until the Nifty decisively clears the immediate resistance zone of 24,350- 24,400. Until then, traders can consider a hedged short strategy: Sell Nifty July Futures around 24,350 Buy 24,300 Call Option (Monthly Expiry) as a hedge. The maximum risk on the strategy is expected to be around Rs 12,000 per lot.

Exit Strategy:
Stop Loss: Exit on a decisive move above 24,500. Target: Book profits if the index revisits the 24,000 support zone.

TOP STOCK PICKS

EPACK Durable: Buy at Rs 240-244 | Target: Rs 275 | Stop loss: Rs 225 | Timeframe: 1-3 months

The stock‘s technical setup has improved after moving above the Ichimoku conversion and base lines, while momentum indicators have also turned positive.

Endurance Technologies: Buy at Rs 2,770-2,800 | Target: Rs 3,100 | Stop loss: Rs 2,620 | Timeframe: 90 days

It has confirmed a bullish breakout from an Ascending Triangle pattern, reinforcing the strength of the prevailing uptrend. The stock continues to trade above the Ichimoku Cloud with improving momentum, indicating the potential for further gains.

SACCHITANAND UTTEKAR
VP – RESEARCH (TECHNICAL & DERIVATIVES), TRADEBULLS SECURITIES

Trading Strategy
For the Nifty to unlock meaningful directional momentum, the index must reclaim the 24,350- 24,400 resistance zone. A sustained breakout above this range would reaffirm that the broader market structure remains intact and open the possibility of an upmove towards 24,740-24,950 during the current July series.

On the downside, a decisive close below 23,800 would weaken the technical structure and increase the probability of an extended corrective phase.

Deploy a Bull Call Spread: This strategy is suitable for a moderately bullish view, with the expectation that the Nifty will sustain above 24,300 and potentially move towards 24,600 during the expiry period.

Buy: 1 Lot Nifty 24,350 Call @ Rs 115 Sell: 1 Lot Nifty 24,600 Call @ Rs 26 Net Premium: Rs 89 | SL Below: 62 | TGT: 160 Maximum Profit: Rs 161 points (250-point spread − Rs 89 net premium) Maximum Loss: Rs 89 points (Net premium paid) Breakeven: 24,439 (24,350 + Rs 89)

TOP STOCK PICKS
ABB India: Buy at Rs 7,506 | Target: Rs 8,180 | Stop loss: Rs 7,354

The stock has witnessed a fresh breakout from a Bullish Pennant pattern on the weekly chart, with the RSI displaying a strong positive crossover, another positive sign for directional momentum.

State Bank of India: Buy at Rs 1,044 | Target: Rs 1,080 | Stop loss: Rs 1,036

The Piercing Line bullish reversal pattern confirms Rs 1,000 as a key support. RSI above 50 suggests momentum is building towards the Rs 1,080 target.