Stock-specific approach crucial amid market volatility: Insights from Rajesh Palviya

economictimes.indiatimes.com:

ET Now: Help us understand because 24,700 and 24,800 were crucial supports until now. However, with the kind of Put-Call Ratio (PCR) we slipped into yesterday and heavy call writing at the upper strikes, has the trend really changed, or is this just a short-term shift? Is it only earnings that have lifted the sentiment, or could it weaken again if the numbers don't support the sentiment?

Rajesh Palviya: Yes, we were in an oversold zone, and a pullback has taken place from those levels for both Nifty and Bank Nifty. Most large-cap stocks have witnessed profit-taking in this volatile scenario. Looking at the data setup, call writers remain strong at the 25,000 strike, which might act as a major supply zone for this pullback. Until Nifty crosses above the 25,000 level and closes above it, I think we could see supply or selling pressure around that mark. Those who bought at lower levels can hold on for a target of 25,000, but that level needs to be reviewed again since call writers remain active, and their positions will maintain pressure around those levels. On the downside, as you mentioned, 24,700 is now critical for Nifty to hold to enable further pullback. If we slip below 24,700, this downward trend may continue, possibly pushing Nifty towards 24,500, the next major put-based concentration. The market is still not in a comfortable zone for aggressive bullish bets in this environment. The range for the next few days is likely between 24,700 and 25,000. A breakout or breakdown on either side will determine the