Nifty faces 24,600 resistance as analysts back buy-on-dips strategy
Technical analysts are recommending investors accumulate India's Nifty index on pullbacks rather than chase rallies, as multiple resistance levels constrain short-term upside.
India's benchmark Nifty index is caught in a trading range, prompting market professionals to advise against chasing upward momentum. Instead, strategists are pointing to specific support zones where capital can be deployed with tightly defined risk parameters.
The index faces immediate overhead resistance between 24,500 and 24,600. Hitesh Rathi, technical analyst at Angel One, suggests accumulating Nifty on declines towards the 24,000 to 24,100 zone. He advises a stop loss below 23,800 to target a move to 24,300 or 24,400. Somil Mehta, head of retail research at Mirae Asset Sharekhan, mirrors this caution, recommending fresh long positions only above 24,255 with a closing stop loss at 23,800 and an upside target of 24,600.
For options traders, Dhupesh Dhameja, research analyst at Samco Securities, favours a Bull Put Spread for the 14 July expiry. The structure involves selling the 24,400 put and buying the 24,200 put. This trade capitalises on time decay and premium erosion, provided Nifty sustains above the 24,100 to 24,200 support band.
Bank Nifty and individual equities
The banking subset is showing relative strength, having rebounded from its 40-day exponential moving average. Mehta identifies Bank Nifty support between 56,550 and 57,400, with resistance between 58,706 and 59,250. He suggests buying on dips around 57,400 to 57,575, targeting 58,706 with a closing stop loss at 56,550.
Beyond the benchmarks, analysts have identified individual stocks exhibiting breakout momentum. Mehta highlights BEML, which has a target of 1,930 to 1,960 rupees against a stop loss of 1,805 rupees. He also notes Blue Star recently closed above triangle resistance with bullish momentum crossovers, setting a target of 1,730 to 1,768 rupees.
Dhameja points to Sobha, which confirmed a Cup and Handle breakout and is holding above its 200-day exponential moving average, carrying a target of 1,680 rupees. He also favours Steelcast, targeting 340 rupees as it resumes a primary uptrend from a multi-week consolidation. Rathi's selections include Grasim Industries, targeting 3,500 to 3,550 rupees, and Knowledge Marine & Engineering Works, targeting 2,500 to 2,550 rupees, both supported by bullish Point and Figure chart formations.
