Market analyst Vinay Rajani from HDFC Securities said that choppiness is still continuing and the market is not able to sustain at higher levels, indicating that the primary trend remains on the downside. However, the recovery seen in the previous session found support near the gap area from April 2025, around the 22,950 level, and bounced back strongly. Rajani noted that Nifty is now encountering resistance at its five-day exponential moving average, currently at 23,560 levels. If the index crosses this level, there is a good chance of further recovery.
Rajani highlighted that some stable movements are visible, with stock-specific and sector-specific bullish moves, supported by positive cues from the Asian markets. He expects a recovery in metals, select PSU stocks, and some power stocks. For traders, he recommends maintaining long positions in Nifty with a stop loss of 23,200, targeting a pullback rally to 23,700–23,800. He also observed that short covering in FII index futures has improved the long-to-short ratio, providing additional support for a rebound.
On stock-specific opportunities, Rajani highlighted resilient performers. Linde India has shown strength and a fresh breakout on the charts. He suggests going long in Linde India around 7,230–7,250, with a stop loss at 7,100, and expects the stock to reach 7,450–7,500. Another pick is MCX, linked to commodities and energy, benefiting from renewed traction in metals like gold and silver, as well as strong performance in oil. Rajani recommends entering MCX around 2,628, with a stop loss at 2,580, and expects a target of 2,720–2,750.
With clear support and resistance levels, traders can navigate the choppy market by focusing on sectoral strength and carefully selected stock opportunities, positioning themselves for potential short-term gains.
