Nifty likely to trade in 22,800-23,800 range: Analysts
SBI Life, HDFC Life, SRF, Navin Fluorine, Biocon, Marico, Bharti Airtel, HAL, Deepak Fertilizers, Tata Motors, TCS, and Bajaj FinServ present favorable risk-reward setups on the charts, said analysts.
ROHAN SHAH
TECHNICAL ANALYST, ASIT C MEHTA INVESTMENT
Where is Nifty headed? We expect the weakness in Nifty to persist, due to the lack of leadership from heavyweight sectors such as Bank Nifty and IT, alongside the prevailing weak market sentiment. The recent price action indicates a breakdown below the critical support zone of 23,300, which aligns with the 50-week moving average and the 38.2% retracement level of the prior rally from the October 2023 low. Market breadth remains subdued with only 37% of stocks trading above their 200-day moving averages, signalling further weakness. Given these developments, we expect the index to continue its downward trajectory towards the 22,500-22,000 range, with intermediate resistance levels at 23,700–24,000.
What should investors do? Traders are advised to maintain a sell-on-rise strategy and adopt a stock-specifi c approach amid the prevailing market weakness. However, select stocks continue to show strong traction and will likely sustain their upward momentum in the coming sessions. We remain optimistic about life insurance stocks such as SBI Life and HDFC Life, which have displayed resilience. Speciality chemical stocks like SRF and Navin Fluorine have shown promising action recently. Stocks like Biocon, Marico, and Bharti Airtel also exhibit strength on the charts,
