Nifty takes a breather as bulls and bears watch the next move: Analysts

After racing ahead by more than 1,000 points, Nifty has hit a pause. The index is now testing key support and resistance levels, with experts split between buying dips and selling rallies as traders look for the next decisive move.

SOMIL MEHTA

HEAD OF RETAIL RESEARCH, MIRAE ASSET SHAREKHAN

Trading Strategy
The Nifty rally is now cooling off after that sharp run, which is fairly normal after a move of that size. The index is still holding above its key daily moving averages — the 20DMA at 24,323 and the 40DEMA at 24,227. Traders can buy on dips between 24,227 and 25,190, with a stop loss of 24,050 on a closing basis, for a target of 24,774–25,000.

Bank Nifty: Bank Nifty has held up much better and has barely corrected in the last few sessions. For fresh long positions, it would be prudent to wait for a decisive break above the swing high of 57,885. Traders can buy above 57,885, with a stop loss at 57,158 on a closing basis, for a target of 57,885–58,700.

Read more | Equity investments should give about 15% annual returns over next 5 years: Raamdeo Agrawal

TOP STOCK PICKS
Garden Reach Shipbuilders & Engineers: Buy at CMP Rs 2,618.6 | Target Rs 2,740–2,800 | Stop loss Rs 2,535

The stock bottomed at Rs 2,471, broke its falling trendline, and turned bullish. With Rs 2,670 as key resistance, a decisive breakout above this level could confirm trend reversal and trigger the next rally higher.

Supreme Industries: Buy at CMP Rs 3,558.9 | Target Rs 3,685–3,750 | Stop loss Rs 3,425

The stock has given a breakout from an inverse head-andshoulders pattern, indicating a positive shift in trend. It is also trading above its key daily moving averages, while the daily momentum indicator has entered bullish mode after a positive crossover in Friday’s session.

DHUPESH DHAMEJA
RESEARCH ANALYST, SAMCO SECURITIES

Trading Strategy
Buying interest for Nifty is emerging around 24,300, but the recovery lacks strong follow-through. RSI at 52.21, below its average of 57.97, confirms moderating momentum without entering oversold territory.

Maintain a sell-on-rise approach below 24,500. Fresh shorts can be considered on a sustained break below 24,300, targeting
24,190–24,050, with a stop-loss above 24,400.

For longs, wait for a decisive reclaim of 24,500, which can trigger a move towards 24,600–24,700.

TOP STOCK PICKS
Ramco Industries: Buy | CMP Rs 356 | Target Rs 386 | Stop loss Rs 341

The stock’s breakout above multi-year resistance, with compressed volatility, rising volumes and strong moving averages, signals fresh price-discovery potential and a likely move towards new highs.

Shadowfax Technologies:
Buy | CMP Rs 251 | Target Rs 277 | Stop loss Rs 238

The stock shows bullish continuation, recovering from Rs 205–215, consolidating near Rs 250–255, holding above the rising 10-DEMA and 20-DEMA, with positive moving-average alignment supporting the trend.

HITESH RATHI
TECHNICAL ANALYST, ANGEL ONE

Trading Strategy
Nifty faced rejection at 24,750–24,800, confirming strong resistance. A breakout above 24,800–24,850 is needed to negate
weakness. Until then, rallies towards 24,500 favour sell-on-rise trades, with stop loss at 24,590 and target near 24,340, reflecting capped upside.

TOP STOCK PICKS
Indus Towers: Buy at Rs 380–382 | Target Rs 400–407 | Stop loss Rs 366

The stock holds strong support at Rs 370–365, with a W-pattern breakout above Rs 380 and bullish RSI crossover, signalling
strengthening momentum, emerging trend reversal, and buyers gradually gaining control.

Asahi India Glass: Buy at Rs 930–939 | Target Rs 990–1,010 | Stop loss Rs 885
The stock broke out above Rs 930 after support at its 20-brick moving average, confirmed by triple-top bullish breakout and
invalidation of bearish pole, signalling buyers’ control and potential for higher levels ahead.