Markets ended on a positive note with the Sensex and Nifty closing in the green, as the Nifty held firmly above the 24,100 mark. Broader markets outperformed, led by gains in smallcaps, while defence stocks rallied on export optimism surrounding the BrahMos missile programme. Pharma, banking, oil and gas stocks also lent support, even as FMCG remained under pressure. Meanwhile, traders shifted focus to the weekly Nifty expiry, with heightened activity in the derivatives market ahead of key global manufacturing PMI data and a busy day of corporate actions and IPO listings.
In an exclusive interview with ET Now, technical expert Akshay Bhagwat shares key Nifty levels, top stock picks and sectoral trends.
Key Levels
Akshay said, “24,200 is an important resistance level. If the Nifty approaches this level during tomorrow’s weekly expiry, it is likely to face strong resistance, as significant call writing has been seen at this strike. Crossing 24,200 would require strong upward momentum, which appears unlikely at the moment.”
“On the downside, 23,900 remains a key support level. Given today’s rangebound setup, there is a possibility that the market may temporarily slip below 24,000 during tomorrow’s weekly expiry. For the short term, the Nifty is expected to remain within the 23,900–24,200 range over the next two to three days, although this phase could extend further.”
“Despite the near-term consolidation, the broader technical setup remains strong. There are no signs of a major reversal or correction, and the uptrend that began from the 23,200 level is expected to continue towards 24,600,” Akshay added.
Sectoral bias
Akshay said, “A slight dip is possible during tomorrow’s weekly expiry. From a sectoral perspective, the small and midcap banking space is expected to maintain its strong momentum, which has been evident over the past few trading sessions.”
“There has been significant long build-up in several private and midcap banking stocks, including AU Small Finance Bank, RBL Bank, and Federal Bank. These stocks remain technically well-positioned on the charts, with long additions in the June series gradually shifting to the July series. Based on this positioning, the ongoing uptrend in the small and midcap banking space is expected to continue in the coming sessions,” he added.
Top picks
“RBL Bank is my first recommendation. The stock has an upside target of Rs 394-405, with a stop-loss at Rs 367. My second recommendation is Bharti Airtel from the telecom space. The stock can be bought at the current market price for potential targets of Rs 1,964 and Rs 1,982, while maintaining a stop-loss at Rs 1,867,” Akshay said.
Defence stocks
“The defence sector has been witnessing strong positive traction since last week. Among the stocks in the space, Bharat Electronics stands out. The stock has formed a strong base around Rs 400, and momentum has picked up significantly from those levels. Strong volumes in the Rs 400-410 range indicate sustained delivery-based buying. Technically, the stock has positional upside potential up to Rs 460. A stop-loss should be maintained below Rs 405,” Akshay said, adding, “the second stock is Mazagon Dock. This is more of a short-term technical trade, but the stock has the momentum to move towards Rs 2,700 from the current market price of Rs 2,541. A stop-loss should be maintained below Rs 2,400 on this buying recommendation.”
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
