Nifty Outlook: Analysts pick key levels and stocks to watch
Nifty has experienced a decline for four straight weeks, breaking through the crucial 24,000 support level. Experts recommend adopting a market-neutral approach to capitalize on expected volatility. Among the stocks to watch are APL Apollo Tubes a...
By ET Bureau | Updated:
Agencies
Nifty slipped for the fourth straight week, closing at 23,897.7 and breaching the 24,000 support. Analysts caution that a sustained break below 23,800 could open the door to 23,500–23,600, while a decisive move above 24,200 is needed to confirm a bullish reversal.
RAJESH PALVIYA HEAD OF RESEARCH, AXIS SECURITIES
Nifty Strategy: The suggested strategy for the weekly September 8 expiry is a market-neutral Long Straddle, designed to benefit from increased volatility. This involves buying one lot each of the 23,950 Call and 23,950 Put, with premiums of 89 and 80 respectively, making a total outfl ow of Rs 11,000. As a debit spread, the maximum loss is limited to the premium paid if Nifty closes at 23,950 on expiry. However, if Nifty closes above 24,120 or below 23,780 and sustains beyond either breakeven level, profits can be unlimited.
The stock signalled a robust breakout, surging 4.4% on Friday and forming a bullish engulfing pattern. RSI has crossed 60, and prices are trading above the 20- and 50-day EMAs, confirming momentum.
The stock has cleared its 5-day moving average and is consolidating between Rs 1,600–1,700. The weekly MACD remains bullish, while RSI at 60 supports strength above the 20- and 50-day EMAs.
ANAND JAMES CHIEF MARKET STRATEGIST, GEOJIT INVESTMENTS
Trading Strategy: Bank Nifty has been forming continuation patterns since April 2026, followed by a “cup & handle” formation, suggesting potential for a large upside move. However, recent attempts have faced rejection. While not inclined towards outright selling, buying is recommended only on dips to 56,400, the downside marker. Aggressive traders may attempt long entries near the lower Bollinger Band at 57,109. Upside bets remain capped at 58,000, aligning with recent peaks and the upper Bollinger Band.
The stock has broken out of a prolonged consolidation, supported by strong volumes. Weekly MACD has delivered a bullish crossover, while RSI at 64 reflects healthy buying interest. Narrowing distance between the 20- and 100-week MAs further supports upside prospects.
The stock has broken out of a bullish wedge pattern, supported by strong volumes. The weekly MACD has turned bullish, and RSI at 67 shows robust buying strength.
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ROHAN SHAH TECHNICAL ANALYST, ASIT C. MEHTA INVESTMENT INTERMEDIATES
Trading Strategy: Nifty has declined for the fourth straight week since CAS implementation, but the lower-timeframe structure remains positive with higher highs and higher lows intact. The setup favours buying Nifty Futures for an upside target of 24,300–24,500, with a stop loss below 23,500.
The stock is consolidating near the neckline of an Inverse Head and Shoulders pattern. Constructive price action and supportive volumes increase the likelihood of a bullish breakout.
The stock has triggered a bullish AB=CD Harmonic Pattern, with the PRZ around 2,400–2,450. A multi-month demand zone at the same level strengthens the reversal setup.
