Angel One: Nifty's technical setup remains weak; Trent among 3 stock ideas

Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.

 

The benchmark indices witnessed a highly volatile trading week, characterised by sharp swings amid persistent global uncertainties, rising bond yields and crude oil prices, currency market fluctuations, and the RBI’s rate hike. These factors weighed on investor sentiment and kept the markets under pressure throughout the week. However, a notable rebound from the 52-week low during the final trading session helped the Nifty50 index to break its losing streak. Supported by the late recovery, the index managed to end the week on a positive note, gaining 0.44 percent and settling a tad above the crucial 22,500 mark.

 

 

After eight consecutive weeks of sustained selling pressure, which dragged the benchmark index down by over 10% and pushed key technical indicators into deeply oversold territory, the bulls finally staged a recovery, bringing the prolonged losing streak to a halt.

 

While the broader technical structure remains weak, with the formation of lower bottoms indicating a persistent bearish trend, the index is approaching a crucial support zone, coinciding with the lows recorded in April 2026 and April 2025. ‘Doji’ candlestick on the weekly chart

 Additionally, the formation of a ‘Doji’ candlestick on the weekly chart offers a glimmer of hope for a potential relief rally. However, the overall market outlook remains cautious, with a decisive breakout above the previous swing high still required to signal a meaningful trend reversal.

 

From a technical perspective, the 22,200-22,000 zone emerges as a crucial support threshold, and any decisive breach below this range could weaken the near-term market structure further, potentially accelerating selling pressure towards the 21,750-21,700 levels.

 

On the upside, the immediate resistance is placed around 22,750-22,800, followed by the psychological 23000 mark. A sustained move above these resistance zones would be essential to provide near-term relief and revive buying momentum.

 

Until the index establishes a convincing recovery above these levels, a cautious approach backed by disciplined risk management remains prudent. Meanwhile, market participants should maintain a stock-specific focus amid the ongoing quarterly earnings season, carefully assessing corporate performance and earnings outlook while closely monitoring evolving global developments. Check - TOP GAINERS NSE | TOP LOSERS NSE

 

Stock recommendations by Osho Krishan, chief manager - technical & derivative research, Angel One

 

Stock: Persistent Systems

 

View: Bullish

 

Last Close: ₹5,770

 

Persistent Systems has witnessed a strong rebound from its 200-DSMA, coinciding with a breakout above the neckline and sustaining its upward momentum. The counter has demonstrated relative outperformance within its sector, reflecting underlying strength. The recent resurgence further reinforces the positive technical outlook, with the stock trading above all its key EMAs and the 200-day SMA, indicating a constructive bullish bias.

 

Hence, we recommend to Buy  Persistent Systems around ₹5,700 | Stop loss: ₹5,300 | Target: ₹6,300-6,400 

Stock: Physicswallah Ltd

 

View: Bullish

 

Last Close: ₹143

 

Physicswallah has staged a sharp rebound from its recent 200-day SMA, forming a V-shaped recovery on the daily chart. Further strengthening the bullish outlook, the MACD histogram has registered a trendline breakout above the zero line, signalling improving momentum. Collectively, the majority of technical indicators remain aligned positively, reinforcing the prevailing bullish undertone and supporting the potential continuation of the stock’s upward trajectory.

 

Hence, we recommend to Buy Physicswallah around ₹138-135 | Stop loss: ₹125 | Target: ₹160

 

Stock: Trent

 

View: Bullish

 

Last Close: ₹2,920

 

Trent witnessed a strong upmove over the previous week, backed by robust volumes, effectively negating its recent corrective phase. On the weekly chart, the counter has formed a higher high, signalling a potential reversal of the prevailing bearish trend, while the latest surge has established a higher bottom. Additionally, the 20-day EMA has crossed above the 200-day SMA, reinforcing the improving technical structure and strengthening the bullish outlook.

 

Hence, we recommend to Buy Trent around ₹2,900 | Stop loss: ₹2,700 | Target: ₹3,200-3,250