Nifty Faces Risk Below 24,000; Rupak De Highlights MCX and Havells as Key Stocks to Watch Next Week.

The Indian stock market has recently exhibited signs of pressure, with the Nifty index declining approximately 1% over the past week and testing critical support levels around 24,300 to 24,400. Senior Technical Analyst Rupak De from LKP Securities highlights that a decisive break below the 24,000 level could signal a shift into a short-term bearish phase. Despite this looming uncertainty, the overall trend remains cautiously optimistic, with expectations for a potential recovery towards the resistance level of 24,700 if the market can maintain its footing above crucial support levels.

In terms of sector performance, the Nifty Auto and PSU Bank indices have emerged as the bright spots among the major sectors, showing resilience amidst broader market weakness. In contrast, the FMCG and Nifty Energy sectors are anticipated to remain under pressure in the near term, reflecting the ongoing challenges within these areas. The Bank Nifty has been notably stable, oscillating between 57,100 and 58,000, yet without a clear banking leadership, the likelihood of a breakout from this range appears limited in the short run.

Individual stock performances have also drawn attention; notably, MCX shares experienced a significant rally of over 11%, driven by positive sentiment after weeks of subdued performance. This momentum hints at a potential continuation of the uptrend, with immediate targets set between 3,200 and 3,300. Conversely, TCS shares faced downward pressure amid the resignation of Chairman N Chandra, raising concerns about a possible correction if the stock falls below 2,350, although it may stabilize and recover if this threshold is maintained.

For the upcoming week, recommended trading strategies include buy positions on ELGI Equipments, Havells, and Himadri Speciality Chemical, all of which have demonstrated bullish technical setups and the potential for upward momentum. ELGI Equipments is highlighted for its breakout above a falling trendline, while Havells and HSCL are poised for continued strength as they maintain positions above critical moving averages, suggesting a positive outlook for investors willing to adopt a buy-on-dips approach within the current market environment.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)