Technical analysts believe that the Sensex and Nifty can extend their rally in the near-term, with indices closing above the short-term moving averages, and positive cues from momentum indicators.
Ajit Mishra says that Nifty's inability to sustain above the 20-DEMA, keeps the near-term outlook cautious. Flags higher-high, higher-low pattern on Bharti Airtel for his positive stance.
Stock market outlook: Jatin Gedia of Teji Mandi expects the pullback in Nifty to continue citing positive cues from the daily and hourly momentum indicators.
Nifty rollover to the November series was below its three-month average, and the cost of carry also declined, said Dharmesh Bhatt of Systematix Institutional Research.
Vinay Rajani of HDFC Securities believes that a sustained move above 22,800 could clear the 20-DEMA resistance and open the way for Nifty toward the next resistance at 23,175.
The daily momentum indicator has a positive crossover; however, failure to hold the crucial support zone of 22850-22820 is a concern.
Stocks to buy today: The 22,200-22,400 zone is the next key support area, while the 23,000-23,300 zone is likely to cap the upside during any recovery.
Nandish Shah of HDFC Securities expects the 22,776-22,800 resistance band to now act as immediate support, and sees near resistance in the 23,100-23,150 range.
Ajit Mishra of Religare Broking has reiterated a cautious stance on Nifty, with 22,850, coinciding with the 20-DEMA, acting as the immediate hurdle. He has recommended HAL, IndiGo and BHEL for trade.
Vinay Rajani of HDFC Securities has recommended buy-on-dips in Nifty, as support has shifted higher to 22,580, followed by 22,300. Besides, he has also shared a bullish view on HAL and Karnataka Bank
Based on the options data, on Tuesday the focus will be on the 22,250-22,500 range owing to Nifty's weekly expiry, says Dharmesh Bhatt, Head-Derivatives Research at Systematix Institutional.
At current levels, the NSE Nifty is on course to log its longest (9th) weekly losing streak since April 2001, shows market data. Technical analyst expect support around the psychological 22,000-mark.
Stocks to buy today by Angel One: Hitesh Rathi is bullish on GE Vernova, Cyient and Graphite India. He flags 22,200-22,000 as all-important support band, and hurdle at 22,550-22,600 for Nifty.
Tech analyst at Mirae Asset Sharekhan and SAMCO Securities flag 22,000-22,500 range as key support for Nifty in the short-term, and caution of further weakness in Bank Nifty in the H2FY27 outlook.
On the broader market outlook, Jatin Gedia of Teji Mandi expects the Nifty to consolidate within 22,500-22,800 band for now.
The Nifty cracked 1.4% to a low of 22,807.55 on Monday, reaching within striking distance of its 200-week moving average at 22,607. The index last closed below the 200-WMA in June 2020, shows chart.
The Nifty closed in the green above the falling channel on Wednesday indicating signs of a trend reversal, says Jatin Gedia of Teji Mandi. The analyst is bullish on Indus Towers and South Indian Bank.
Hitesh Rathi of Angel One advocates adopting a strategy where dips in Nifty could be bought into, while rallies towards key resistance zones can be utilised to consider short positions.
Pabitro Mukherjee of Bajaj Broking says that the Nifty is showing signs of a pullback after forming higher highs and higher lows on Thursday, and adds that the key hurdle stands at 23,600 levels.
Black Box and Adani Ports present attractive technical buying opportunities, while the Nifty remains weak but could see a short-term bounce from key support levels.