SENIOR TECHNICAL RESEARCH ANALYST, HDFC SECURITIES
Where is the Nifty going?
Nifty tried to hold higher levels on Friday but selling pressure near 25,900 hampered the recovery attempt. The index continues to fluctuate between 25,900 and 26,000 on the upside and 25,500 on the downside. On the weekly chart, Nifty formed a high wave bull candle, reflecting continued volatility after last week’s sharp weakness. The broader trend remains choppy. A decisive move above 25,900 could open an upward move towards 26,300, while a break below 25,500 could deepen weakness towards 25,150 in the short term. Trading Strategies: On a move above 25,900, traders can consider buying Nifty February futures around 26,100 or Nifty 26,100 CE dated February 24, with expiration around `350-400, for near-term upside potential. In case of a break below 25,500, traders could look at short Nifty February futures around 25,700 as potential downside.
TOP STOCK BETTS
CANARA BANK: BUY CMP Rs 157.1 | Target price Rs 166 | Stop loss Rs 152
Stocks rose sharply on Friday, witnessing a breakout from consolidation. Bullish chart patterns such as higher highs and higher lows remain intact. Volumes expanded during the upside breakout, and the daily RSI shows a positive indication.
TECHMAHINDRA: BUY CMP Rs 1,670.5 | Target price Rs 1,760 | Stop loss Rs 1,620 Switched to a bullish flag breakout on Friday and closed higher. The hurdles of the daily 10 and 20 EMAs have been decisively crossed. Volumes expanded and the daily RSI provides positive indications for the stock price ahead.
MEHUL KOTHARI
DVP – TECHNICAL RESEARCH, ANAND RATHI SHARES AND SECURITIES BROKERS
Where is Nifty going?
Nifty continues to trade within a range and remains firmly above the key support at 25,400, which remains a strong demand zone. On the upside, 25,900 is a critical resistance, and only a decisive breakout above this level can trigger a sustained upward move. If the index remains within the 25,400–25,900 range, the trend is expected to remain sideways, justifying a cautious and selective approach. Volatility increases and sharp moves cannot be ruled out once the range is resolved.
Trading Strategies: In an environment of increasing volatility, aggressive short option strategies should be avoided. Traders are advised to wait for direction confirmation before entering option trades. A directional bet on options can only be considered on a decisive move above 25,900 or below 25,400. A breakout above 25,900 could favor Bull Call Spreads, while a breakout below 25,400 could provide opportunities for Bear Put Spreads.
TOP STOCK BETTS
TRACK VIKAS NIGAM: BUY CMP Rs 334.7 | Target price Rs 380 | Stop loss Rs 303
From a thematic perspective, RVNL remains attractive, driven by the theme of rail and budget. The stock can be built in the range of Rs 335–330.
BANK OF INDIA: BUY CMP Rs 157.2 | Target price Rs 180 | Stop loss Rs 142
The Bank of India is consolidating near a strong support zone of Rs 157-153 after a sharp rise. As long as Rs 142 is protected, the broader structure remains positive, with upside potential towards Rs 180 in the coming months.
SACCHITANAND UTTEKAR
VP – RESEARCH (TECHNICAL AND DERIVATIVES), TRADEBULLS SECURITIES
Where is Nifty going?
Last week’s recovery from the 25,430 support formed a bullish Hammer on the daily chart, while the weekly chart showed a Spinning Top, signaling indecision. Both patterns indicate exhaustion of the correction phase within the band 25.880–25.430. The Hammer was followed by a reversal pattern similar to an Inverse Hammer in subsequent sessions, with key resistance placed at 25,880 (50-DEMA). However, these bullish signals will only gain validity if the index definitively stays above 25,880. Options data indicates a shift in the range towards 25,500–26,000, with strong support seen around 25,500 for the current weekly range.
Trading Strategies: Useful: Traders may consider initiating new long positions only on a sustained close-based breakout above 25,880. Until such confirmation occurs, a long-short trading approach remains sensible as the index is likely to hover between 26,050 and 25,430. Within this range, buying near support and selling near resistance could remain the preferred strategy for short-term traders.
Bank Handy: Bank Nifty remains in a ‘long-only’ mode. Traders can continue to enter long positions even on declines towards the 59,850 zone, with a strict stop loss below 59,710. The index has the potential to move towards the 60,600–60,850 zone in the near term, as long as key support points remain intact.
TOP STOCK BETTS
ULTRATECH CEMENT: BUY for Rs 12,370 | CMP Rs 12,377 | Target price Rs 13,100 | Stop loss Rs 12,040
On the weekly chart, it looks like stocks have completed their Flat Wave correction pattern with a strong base near the 11,500 zone. A bullish crossover of the 5 and 20 WEMAs, coupled with the weekly RSI crossing above 50, signals a revival of momentum. The structure now favors an upward extension, making it a high probability positional long.
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