Handy bull grip. Intact; BSE, IndusInd Bank among top picks: Rahul Sharma

Indian equities continue to trade positively, and the uptrend looks sustainable as long as the Nifty remains above key support levels, said Rahul Sharma, Director and Head – Technical & Derivatives Research, JM Financial Services.

Speaking to ET Now, Sharma noted that despite the recent volatility, the market continues to be supported by the strength of banking and financial stocks, with FIIs showing reduced short positions in these sectors.

“Technically, Nifty will remain in a bull grip as long as we do not close below 25,000. Once 25,200 is crossed, we can expect a move towards 25,500 in the near term,” he said.

He advised traders to buy on dips with a stop loss at 24,950, suggesting stock-specific action will drive the next phase of gains.

Top Stock Picks: BSE and IndusInd Bank

Sharma highlighted Bombay Stock Exchange (BSE) and IndusInd Bank as his strong picks in the current market setup.

“BSE has emerged from a three-to-four-month phase of underperformance and is showing strong reversal signals,” he said. He expects the BSE stock to rise towards ₹2,500–2,550, recommending accumulation on dips with a stop loss near ₹2,100. On IndusInd Bank, Sharma said the stock offers an attractive risk-reward ratio after a steady recovery.

“IndusInd Bank has not participated in the recent rally, but volume and price action have improved. A buy at around ₹750 with a stop loss of ₹720 could see targets of ₹840-850,” he added.

Sector vision: Pharma and metals

Sector-wise, the pharmaceutical and metals sectors are back in the spotlight, with Divi’s Laboratories emerging as a strong investment choice.

“Divi’s Labs has bounced back from the oversold level of almost ₹5,700 and looks poised for a move towards ₹6,600-7,000. It is a sound investment bet: buy on dips,” Sharma advised.

While he was positive on the metals index, he warned that momentum could peak.

“Metals are more of a trading opportunity at the moment. Tata Steel is a good choice for short-term traders – buy on dips with a stop loss of ₹170 for a target of ₹185,” he said.

Market Outlook

As earnings season kicks off and bank stocks lead the way, Sharma believes the broader market structure remains positive – supported by liquidity, institutional interest and improving domestic fundamentals.

“BFSI and select largecaps are driving the post-RBI policy. As long as key supports hold, the bull trend will remain intact,” he concluded.

Main technical levels:

Useful support: 25,000
Useful resistance: 25,200 → 25,500
Trading Strategy: Buy on dips, focus on stock-specific moves