Nifty’s next move hinges on breakout above 23,200: Analysts

Nifty rose nearly 2% last week to close around 23,050, but analysts remain cautious as the index approaches the key 23,200 resistance level. A breakout above this zone could pave the way for gains towards 23,500–23,600, while support is seen in the 22,600–22,800 range.

NAGARAJ SHETTI, AVP – TECHNICAL RESEARCH, HDFC SECURITIES

The Nifty has broken above the crucial resistance of 22,800 and formed a higher bottom near 22,400 after a series of lower tops and bottoms, signalling a potential trend reversal. The index is now testing resistance at 23,200.

Nifty Strategy: Create long positions at current levels and on dips towards support. A decisive move above 23,200 could trigger further short covering and limit downside risks.

For the November expiry, buy Nifty futures around 23,000–23,100 for a target of 23,400, with a stop loss at 22,800. Alternatively, buy the Nifty 23,200 call for the November 23 expiry in the Rs 250–280 range, with a target of Rs 450 and a stop loss at Rs 160.

TOP STOCKS FOR THE WEEK

DLF: Buy | CMP: Rs 687 | Target: Rs 735 | Stop Loss: Rs 655.

The stock has been forming higher lows and is attempting to break out of a broader trading range near Rs 695. The recommended holding period is two to three weeks.

Zensar Technologies: Buy | CMP: Rs 535 | Target: Rs 580 | Stop Loss: Rs 510.The stock has reversed its recent downtrend after forming a significant bottom near Rs 416 in September. The holding period is two to three weeks.

Read more: Can Nifty, Sensex extend gains after rallying up to 2% last week? 4 factors to watch on Monday

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

The Nifty has reclaimed its 20-day exponential moving average and closed above the 22,865 recovery threshold. The daily RSI has moved above 50, indicating improving momentum. However, the broader trend remains cautious as the index is still below its declining 50-day EMA near 23,170.

Nifty Strategy: Adopt a cautiously positive approach, taking selective long positions on sustained moves above 23,000. A decisive breakout above 23,170 could extend the recovery towards 23,350–23,500.

For a bullish view, buy one lot of Nifty November futures up to 23,020, with a stop loss at 22,882 and a target of 23,540.

Read more: Nifty IT’s 18% rally may mark a durable leadership cycle; 35,000 next: LKP’s Vatsal Bhuva

TOP STOCKS FOR THE WEEK

Coforge: Buy | CMP: Rs 2,059 | Target: Rs 2,356 | Stop Loss: Rs 1,972.

Sector strength and a weekly bullish-flag breakout support the stock. A close above the 2,000 call OI cluster and monthly ADX near 25 signal stronger momentum.

Radico: Sell | CMP: Rs 4,120– 4,166 | Target: Rs 3,800 | Stop Loss: Rs 4,255.

Negative divergence on the monthly RSI and a break below the 20-week EMA signal continued weakness, reinforced by daily ADX above 25.

MEHUL KOTHARI, VICE PRESIDENT – TECHNICAL & DERIVATIVE RESEARCH, ANAND RATHI SHARE AND STOCK BROKERS

A decisive breakout above 23,200, accompanied by strength in the broader market, is necessary for a sustainable recovery. Immediate support is at 22,600, followed by 22,400. For Bank Nifty, a breakout above 56,000 could improve sentiment, while a breach of 53,000 may trigger significant weakness. Traders should avoid aggressive directional positions until either boundary is decisively breached.

Nifty Strategy: Consider buying Nifty futures once the spot index sustains above 23,200, with a put option as a hedge. Investors with a medium-term horizon can accumulate NIFTYBEES in a staggered manner around Rs 262.

TOP STOCKS FOR THE WEEK

BSE: Buy | CMP: Rs 3,500 | Target: Rs 3,900 | Stop Loss: Rs 3,300.

A hidden bullish divergence on the weekly chart suggests the prevailing uptrend could continue. The recommended buying range is Rs 3,400–3,500.

ITC: Buy | CMP: Rs 262 | Target: Rs 295 | Stop loss: Rs 250

The stock is showing signs of accumulation after an extended period of underperformance and remains oversold on longer-term charts. A sustained move above Rs 271 could trigger a recovery.