Speaking to ET Now, Rajesh Bhosale from Angel One said the Nifty has been finding it difficult to move past the psychological 26,000 level, leading to some profit booking in the benchmark index. However, he pointed out that the broader technical setup remains constructive.
“If we talk about markets, last few sessions Nifty was struggling around the psychological 26,000 mark and due to weakness in IT space we are seeing some profit booking in this benchmark index. But if we consider the weekly charts of Nifty, last week there was a very strong formation that happened and because of that we remained on the market where a dip should be considered as a buying opportunity. If we see, there is a bullish gap left around 25,700 that coincides with key moving averages. So, 25,700 is what we are expecting to act as a support, but on the higher side 26,000 is the immediate resistance. So, 25,700 to 26,000 is the key range for now and one should play this range. But having said that, stock specific opportunities are there and one should focus on there,” Bhosale said.
With the frontline index moving in a tight band, attention is shifting to sectoral and stock-specific opportunities. Bhosale highlighted strength in the financial space, noting broad-based buying interest.
“So, if we see, financial space is doing very good and broad-based buying is witnessed there. One of the counters from that space I am liking is Bajaj Finance. If we see, despite market weakness this counter is up around 2%. If we see the chart structure, it has been holding above its key moving averages and today we are seeing a flag pattern breakout. Also, on the futures front we are seeing a strong long formation. So, Bajaj Finance can be bought with a stop loss of around 965, in the near term we expect a move towards the levels of 1,025,” he said.
From the auto space, Bhosale also sounded positive on Hero MotoCorp, citing improving momentum indicators.
“The second counter which I am liking is Hero MotoCorp. So, from the auto space as well we are seeing a broad-based positive momentum. This counter, if we see, it has been holding above its key moving averages and forming a base on the intraday charts and today there is a range breakout. Particularly, in the RSI if we see, it has crossed its previous swing high and trading above 60 zone, so Hero Moto can be bought in the near term, we expect targets of around 5,960 and for this trade setup stop loss can be kept at around 5,600,” he added.Meanwhile, sentiment around Hindustan Unilever (HUL) has turned cautious following its recent results, with the stock under pressure. Bhosale said the technical setup suggests continued weakness unless key resistance levels are reclaimed.
“So, if we see, since last few weeks HUL was holding on to some gains but it was struggling to cross the 2,500 levels and the kind of formation we are seeing is bearish engulfing, so as of now the momentum can remain on the negative side. So, until the stock does not cross 2,500, one should wait. Once it crosses 2,500, we can see positive momentum. Until then, wait for it. If it dips back towards 2,250 to 2,300, that would be ideal to add or else wait for a price breakout above 2,500 levels,” he said.
Overall, while the Nifty remains range-bound, market experts suggest that selective stock picking could continue to offer opportunities even as the broader index consolidates near key technical levels.