Speaking to ET Now, market expert Vinay Rajani from HDFC Securities highlighted the technical resilience of the Nifty, pointing to a strong recovery from recent lows. “So, nice recovery from the lower level. Nifty partially filled the gap which was formed on the 3rd February on the back of the US-India trade deal and that gap was partially filled and Nifty bounced back. So, a typical gap has acted as a support area and now Nifty has witnessed a 500 points recovery from that level,” he said.
Rajani added that the index remains structurally strong, supported by key technical indicators. “So, Nifty is looking very strong as it is still holding above 20, 50, 100, and 200 days’ moving average, so that way also it is very strong,” he noted.
He also pointed out that broader markets are beginning to participate more actively in the rally, aided by the nearing end of the earnings season. “Broader markets are gaining strength. We are at the fag end of the result season, getting over, so that is also a good sign for the broader markets because most of the negatives and positives have been discounted and now broader market can increase their participation in this rally,” Rajani said.
On the outlook for the benchmark index, Rajani maintained a bullish stance, citing strong support levels. “So, on the Nifty we are bullish. We feel that there is a strong support around 25,600 and with that stop loss one should continue to hold on to the long position and we are expecting Nifty to hit an all-time high above 26,373. So, overall, things are quite strong and broader markets have started participating. So, we are bullish on the market with a stop loss of 25,600,” he added.
Turning to sectoral and stock-specific opportunities, Rajani said metals remain a clear outperformer in the current market phase. “Yes, so metal is the space which is continuously outperforming. So, out of that segment steel stocks have started performing well and getting momentum on the charts,” he said.
He highlighted Steel Authority of India (SAIL) as a preferred trading pick. “So, Steel Authority of India, SAIL, is looking very strong to me. Around 160 one can take entry, for trading stop loss can be kept at 157, on the upside I am expecting a short-term target at 166,” Rajani said.In the PSU banking space, Rajani identified Bank of Maharashtra as another stock showing strength. “The second stock I would pick from the PSU banking space, that is Bank of Maharashtra, which is looking quite strong. So, after some small consolidation it is trying to resume its primary uptrend. So, around 66.80, 66.90 one can go long, I would suggest a stop loss at 65 for the trading, on the upside I am expecting an immediate target at 70,” he added.
With both frontline and broader indices showing sustained strength, market participants remain cautiously optimistic, watching key resistance levels while selectively focusing on outperforming sectors such as metals and PSU banks.
