A bearish Nifty faces resistance at 23,000: Analysts

All cardinal method indicators person turned bearish, signalling sustained selling unit astatine higher levels. As agelong arsenic Nifty stays beneath 23,000 mark, weakness could widen towards 22,700–22,500 zone, accidental technical analysts. On the upside, absorption is placed astatine 23,000, with the adjacent hurdle astatine 23,333. Despite broader weakness, stock-specific bullish setups are disposable successful Marico, Bajaj Finance, Max Healthcare, HDFC Bank, Tata Consumer, MFSL, Indus Towers, Nestle, Pidilite Industries, ICICI Bank, Hindustan Unilever, and Apollo Hospitals.

CHANDAN TAPARIA
HEAD – TECHNICAL & DERIVATIVES, MOTILAL OSWAL FINANCIAL SERVICES

Where is Nifty headed?
India’s VIX jumped implicit 8% past week owed to tariff concerns. However, compared to planetary markets, the emergence successful India VIX has been limited, showing that the fearfulness hasn’t afloat spilled implicit the Indian markets yet. Nifty is trading beneath each abbreviated word moving averages and showing signs of weakness. The Relative Strength Index (RSI) has shown a bearish crossover connected regular illustration and is approaching a bearish setup connected play chart. On some regular and play charts, Nifty has formed bearish candles with precocious shadows, suggesting selling unit astatine higher levels. As agelong arsenic Nifty remains beneath 23,000, weakness whitethorn widen towards 22,700 and 22,500 zones. On the upside, absorption is seen astatine 23,000 followed by 23,333 levels.

What could investors do?
Sectors similar IT, auto, metal, and pharma person travel nether unit owed to concerns arising from Trump’s caller tariff plan. However, the absorption is apt to displacement towards comparatively stronger pockets specified arsenic FMCG, banking, and NBFCs, which are expected to stay successful the spotlight amid the ongoing volatility. Stock-wise bullish setups are seen successful Marico, Bajaj Finance, Max Healthcare, HDFC Bank, Tata Consumer, MFSL, Indus Towers, Nestle, Pidilite Industries, ICICI Bank, HUL, and Apollo Hospitals; portion weakness successful Hindustan Copper, National Aluminium, Vedanta and Tata Steel, among others.

Agencies

MEHUL KOTHARI
AVP - TECHNICAL RESEARCH, ANAND RATHI SHARES & STOCK BROKERS

Where is the Nifty headed?
For Nifty, 22,900–22,600 portion is emerging arsenic a beardown enactment area. If the scale manages to rebound from this zone, determination is simply a imaginable enactment of a bullish inverse Head and Shoulder pattern, with the existent dip perchance forming the close shoulder. While it’s excessively aboriginal to confirm, a breakout supra 23,800 would validate this signifier and unfastened the doorway for further upside. A interruption beneath 22,600 could trigger immoderate panic, but the bears volition lone summation a decisive precocious manus if the scale breaches the 22,300 mark. On the upside, contiguous absorption is seen astatine 23,250. A sustained determination supra this level could promote bulls and lend spot to the anticipation of the bullish signifier playing out.

What should investors do?
It’s a clip of uncertainty with the ongoing commercialized warfare worries lingering successful the backdrop. Traders should spell agelong lone supra 23,250 with protective puts, targeting 23,800 if the bullish inverse H&S signifier plays out. Dips adjacent 22,900–22,600 connection low-risk entries with choky stop-losses. A interruption beneath 22,300 fl ips the inclination decisively bearish, truthful caution is key. Investors tin accumulate selectively connected dips but spell dense lone supra 23,800.

DHARMESH SHAH
HEAD OF TECHNICAL, ICICI SECURITIES

Where is the Nifty headed?
Indian equity benchmarks corrected 2.5% past week. This week, we expect Nifty to consolidate successful the broader scope of 23,500-21,900 wherein stock-specifi c enactment would proceed amid elevated volatility with the onset of the Q4 net season, coupled with RBI Policy, tariff developments, and US infl ation print. Structurally, the scale is undergoing a steadfast retracement arsenic implicit the past 8 sessions it has simply retraced 50% of the earlier six sessions’ upmove, highlighting consolidation successful the coming weeks.

What could investors do?
We expect volatility to stay elevated. Investors should absorption connected home themes alternatively than planetary ones and absorption connected accumulating prime stocks (backed by beardown earnings) successful a staggered manner. Banking, NBFC, power, defence and hospitality sectors volition beryllium successful focus. Kotak Bank, Bajaj Finance, HAL, Apollo Hospitals, Lemon Tree, and HPCL look good.