Trading guide: Nifty eyes 25,500; Bharti Airtel, JSW Steel on analyst radar

Bharti Airtel continues to display a strong price structure, sustaining its steady uptrend, while SBI has registered a breakout after consolidating in a narrow range for nearly five months

Market View

Markets edged higher in a subdued session on Wednesday, reflecting a positive yet cautious undertone. After a firm start, the Nifty index traded in a narrow range throughout the day before settling at 25,330.25 level. Sectoral performance was mixed, with IT, banking, and auto emerging as the top gainers, while metals, FMCG, and pharma witnessed profit-taking. Meanwhile, the broader indices maintained their positive bias, with both midcap and small-cap indices closing in the green.

 

Despite the range-bound move, underlying sentiment remains supported by optimism around policy reforms and robust domestic flows. However, persistent FII selling and caution ahead of the US Fed policy outcome capped the momentum. On the index front, the Nifty is now inching towards the 25,500 mark, aided by renewed strength in banking and rotational buying across sectors. We recommend continuing with a “buy on dips” approach, with support placed around the 25,050–25,150 zone, while keeping position sizes moderate given the likelihood of higher volatility due to global events.

 

Stocks Recommendations

Bharti Airtel Limited | LTP: ₹1941.30 | Recommendation: Buy | Target: ₹2,085 | Stop-loss: ₹1,870

Bharti Airtel continues to display a strong price structure, sustaining its steady uptrend while holding above the rising 100-day EMA. In recent months, the stock has been consolidating within a broader range, shaping into a symmetrical triangle pattern — typically a precursor to trend continuation. Over the last two weeks, price action has further tightened within the 1,910–1,870 band, reflecting volatility contraction and a buildup for a directional move. Encouragingly, the stock has now posted a decisive breakout, reclaiming both the 20-day and 50-day EMAs. Additionally, the RSI has turned upward from the 50 zone, reinforcing bullish momentum. The overall setup suggests that consolidation is nearing completion, with prospects of imminent uptrend resumption. Fresh long positions may be considered at the defined levels.

JSW Steel Limited | LTP: ₹1,111 | Recommendation: Buy | Target: ₹1,185 | Stop-loss: ₹1,070

We are seeing noticeable traction in the metal space and JSW Steel is among the top performers. It has surged to a new all-time high, sustaining its robust uptrend marked by consistent higher highs and higher lows. The stock remains well-anchored above key medium- and long-term moving averages, underscoring strong bullish momentum and investor confidence. A recent breakout from a consolidation triangle pattern further validates the continuation of the prevailing uptrend. Investors may consider initiating long positions within the suggested levels to participate in the potential upside.

State Bank of India | LTP: ₹857.15 | Recommendation: Buy | Target: ₹920 | Stop-loss: ₹825

The banking index is witnessing renewed strength, led by momentum in PSU banks. Among them, SBI has registered a breakout after consolidating in a narrow range for nearly five months. The move is accompanied by a notable rise in volumes, highlighting strong institutional buying interest. The stock now trades above the moving averages ribbon, aligned in a bullish sequence, reinforcing the strength of the ongoing trend. Overall, the price structure indicates the resumption of the broader uptrend following its corrective phase. Fresh long positions may be initiated at the defined levels.  (Disclaimer: This article is by Ajit Mishra, SVP-research, Religare Broking. Views expressed are his own.)