Nifty’s rally hinges on a break above the key 24,350–24,400 resistance zone

Nifty closed last week on a weaker note, remaining stuck in a broad 23,800–24,700 range. Analysts said the index needs to clear the 24,350–24,400 zone to show signs of real strength. While some recommend buying with hedges, others favour sell-on-rise trades.

MEHUL KOTHARI, DVP – TECHNICAL RESEARCH, ANAND RATHI SHARE AND STOCK BROKERS

Trading Strategies

NIFTY: Traders can buy Nifty (spot index) futures at current levels and hold with a strict stop loss at 24,000 on a spot closing basis. Immediate target is 24,600–24,750, followed by 25,000. Traders should also consider buying a suitable Nifty Put option as a hedge against any sharp downside move.

NIFTY Bank: Traders can adopt a bullish Buy-on-Dips approach as long as the index sustains above 57,000 on a spot basis. Fresh long positions can be considered on dips towards the lower end of the range, while a sustained breakout above 58,200 can trigger fresh upside momentum. Long positions should maintain 57,000 as the key stop-loss on a spot closing basis and hold for the next leg of the upmove following a breakout.

TOP STOCK PICKS

Vishal Mega Mart: Buy on dips near Rs 103–105 | Target: Rs 118 | Stop loss: Rs 97

The stock is nearing trendline support at Rs 103–105, a strong base in the past. Despite trading below short- and medium-term EMAs, the long-term structure holds. RSI near 41 signals limited downside and rebound potential.

P N Gadgil Jewellers: Buy at Rs 610–615 | Target: Rs 690 | Stop loss: Rs 573

The stock is holding Rs 610–615 support, aligned with the 50% Fibonacci retracement at Rs 614. It stays above the 100/200 DEMA zone, with RSI cooling to 45, offering a stable base and improved risk-reward for entry.

SACCHITANAND UTTEKAR, VP – RESEARCH (TECHNICAL & DERIVATIVES), TRADEBULLS SECURITIES

Trading Strategy

Nifty remains locked between two key averages, with the 50 WEMA at 24,360 acting as resistance and the 50 DEMA at 24,190 serving as pivotal support for the week.

Bank Nifty Bull Call Spread: Buy 1 Lot Bank Nifty 57,600 CE @ Rs 294

Sell 1 Lot Bank Nifty 58,500 CE @ Rs 29

Net Premium: Rs 265 | Breakeven: 57,865

Stop loss: Rs 150 | Target: Rs 550

Maximum Profit: Rs 19,050 |

Maximum Loss: Rs 7,950

TOP STOCKS FOR THE WEEK

CDSL: Buy at Rs 1,388 | Target: Rs 1,590 | Stop loss: Rs 1,340

The stock is seeing a fresh breakout from a four-week range, signalling resumption of momentum. Price closed above 200 DEMA and 50 WEMA, with RSI showing a strong positive crossover.

L&T Finance: Buy at Rs 317 | Target: Rs 356 | Stop loss: Rs 306

Bullish Pennant pattern on the weekly timeframe appears mature for a breakout. A move above Rs330 could trigger fresh buying and unlock further upside.

PABITRO MUKHERJEE, DEPUTY VICE PRESIDENT – TECHNICAL, BAJAJ BROKING

Trading Strategy

Nifty is expected to trade in 23,800–24,700 range amid stock-specific action. Traders can buy Nifty September futures at current levels, and on dips towards 24,200, targeting 24,700 and 24,850.

Read more: Ahead of Market: 10 things that will decide stock market action on Monday

TOP STOCK PICKS

Nippon Life India Asset Management: Buy at CMP Rs 1,251 | Target: Rs 1,370 | Stop loss: Rs 1,190

There is a breakout above a seven-week consolidation range (Rs 1,233–1,080) with a higher base at the 50-day EMA, suggesting potential to reach Rs1,370 in the coming weeks.

Buy at CMP Rs 382 | Target: Rs 418 | Stop loss: Rs 365

The stock is forming a base near the 50-day EMA and 50% retracement of the prior rally, offering a positive risk-reward entry. It is expected to resume the uptrend towards Rs418.