While warning about the risk of a looming oil shock, Groww Mutual Fund’s equity chief, CA Anupam Tiwari, says multicap strategy together with bottom-up investing can work well in this market.

Although there might be valuation concerns in some specific areas, the overall investment environment for active stock picking in mid and small caps has improved to some extent, he says in an interview with ET Markets.

Edited excerpts from a chat:

Markets have recovered from recent corrections despite geopolitical tensions. What is the market pricing that investors may be underestimating?
Markets are showing signs of recovery from the fall due to the prospects of de-escalation and continued talks regarding the resolution of the Middle East crisis. Nevertheless, one possible threat that investors might be overlooking is the possibility of prolonged geopolitical instability that can cause oil prices to remain elevated for an extended period.

Sustained higher energy prices could have broader implications for inflation, currency stability, corporate profitability, and economic growth. While markets appear to be pricing in a relatively benign outcome, any disruption that results in persistently elevated crude prices could have a more meaningful impact on the macroeconomic environment than is currently reflected in markets.

With valuations still elevated in parts of the market, how should investors think about allocating money across large-, mid- and small-cap stocks today?
Broad concerns regarding valuation levels in the market have cooled off in recent months. At the current juncture, close to one-third of the mid-cap space is priced below its five-year average valuation levels, whereas nearly half of the small-cap space is trading below its own five-year average valuation levels.

Under these circumstances, although there might be valuation concerns in some specific areas, the overall investment environment for active stock picking in mid and small caps has improved to some extent. Here, a multicap strategy together with bottom-up investing can work well in uncovering better businesses.

The multicap category has seen rising investor interest. What advantages does a multicap strategy offer in the current market environment compared to pure large-cap or mid-cap approaches?
While the current phase is marked by heightened volatility, volatility is often uneven across segments. In such an environment, a multicap strategy may provide disciplined exposure across market caps within a single portfolio.This allows investors the relative stability and earnings visibility of larger companies, while also participating in the long-term growth potential of mid- and small-cap businesses. By maintaining exposure across segments, a multicap approach can help reduce over-reliance on any single category and provide a more balanced way to navigate changing market conditions.

One of the key benefits of a multicap strategy is that it removes the burden of market-cap allocation from investors. Determining when to allocate across segments can be challenging, particularly as market leadership often shifts across cycles. A multicap strategy addresses this by embedding this decision within a disciplined investment framework, freeing investors from having to make often difficult and timing-sensitive allocation calls.

From a long-term perspective, multicap funds can serve as a core equity allocation for investors, enabling investors to participate in India’s growth story through a combination of established market leaders and emerging businesses.

Many retail investors continue to favour mid- and small-caps despite recent volatility. Is the risk-reward equation still attractive in these segments?
While mid- and small-cap stocks are generally more exposed during periods of market volatility, the opportunity set within these segments has improved as valuations have moderated across several pockets of the market while business fundamentals have remained intact and even improved in several pockets.

Rather than looking at mid and small caps as segments, investors should focus on a disciplined investment framework. Selective opportunities continue to exist despite volatility, making active stock selection increasingly important in determining outcomes.

Which sectors currently offer the strongest earnings visibility, and where are you finding opportunities despite market volatility?
We continue to focus on sectors where earnings visibility remains relatively strong despite broader market volatility. Financials remain a key area of interest, supported by reasonable valuations, stable asset quality, improving credit growth, and a favorable funding environment, particularly within select NBFCs and mid-sized financial institutions.

Within industrials, we remain constructive on themes such as power transmission & distribution, renewable energy, and defence, where order books remain healthy and policy support continues to drive long-term demand. In the auto space, we continue to see opportunities linked to premium consumption trends, EV adoption, and select auto-component manufacturers benefiting from structural drivers such as exports, and regulatory and policy changes.

We are also positive on specialty chemicals, particularly businesses with strong contract manufacturing franchises, niche product portfolios, and long-term customer relationships.

If you had to allocate fresh money today, which market-cap segment would receive the highest allocation and why?
Our equity investment philosophy, QGaRP (Quality and Growth at a Reasonable Price), is market-cap agnostic and driven primarily by stock selection rather than segment-level calls. We seek to invest in businesses that combine high quality management, growth potential, and valuation comfort.

That said, our multicap strategy has historically maintained a growth-oriented tilt towards mid- and small-cap companies. With valuations having moderated across several pockets of the mid- and small-cap universe, we believe the environment has become more conducive in these segments for active stock selection.

As a result, while we continue to maintain a diversified allocation across market caps, we remain constructive on selectively identifying opportunities within the mid- and small-cap space where fundamentals, growth prospects, and valuations are aligned with our philosophy.

The markets traded with a negative bias through the week and ended lower after remaining under sustained pressure. Nifty oscillated in a 582-point range, marking a high at 23,733.70 and a low at 23,151.50 before settling near the lower end of this band. Volatility remained subdued despite the corrective undertone, with India VIX declining 2.47% to 15.79 during the week. As a result, the Nifty ended the week with a loss of 181.05 points (-0.77%).

The broader technical structure continues to remain at an important inflexion point. Nifty is presently trading below its 50-week and 100-week moving averages, while attempting to stabilise above a crucial support area near 23,000-23,100. This zone has emerged as a major line of defence for the markets, and options data also suggest that participants are likely to actively protect this area.

While the immediate downside appears cushioned by the 23,000-23,100 zone, any meaningful and sustained violation of this support area would inflict structural damage on the market and could trigger a fresh phase of weakness. On the upside, the index must reclaim and sustain above the 23,600-23,800 zone to improve the near-term outlook and pave the way for some recovery.

The coming week is likely to begin on a cautious note as markets continue to assess the strength of support near the lower end of the prevailing trading range. Immediate resistance levels are placed at 23,643 and 23,800, the former coinciding with the 20-week average. Supports come in at 23,000 and 22,800, with the 23,000-23,100 zone remaining the most critical area to monitor.

The weekly RSI stands at 39.25 and remains below the neutral 50 mark, reflecting a weak momentum setup. The RSI shows no meaningful bullish or bearish divergence relative to price and remains neutral. Weekly MACD stays below its signal line and continues to remain in negative territory.

A study of the pattern structure shows that Nifty continues to trade within a broad sideways trajectory that has governed price action over the past several quarters. The recent decline has brought the index close to the lower boundary of this formation, making the current levels technically important. While the long-term trend remains intact as long as the channel support holds, the index remains below its 50-week moving average at 24,901 and the 100-week moving average at 24,526, keeping the medium-term trend under pressure. The 200-week moving average at 22,087 continues to provide strong long-term support and reinforces the significance of the broader uptrend. Given the current setup, traders should avoid adopting an overly aggressive stance until the index either decisively reclaims overhead resistance levels or confirms support-led buying from the 23,000-23,100 zone. While this support area may continue to attract buying interest, the risk-reward equation does not yet favour indiscriminate accumulation. Fresh purchases should remain highly selective and stock-specific, with greater emphasis on relative strength and risk management. Protection of capital should remain a priority, especially if the index shows any sustained weakness below 23,000.

In our look at Relative Rotation Graphs®, we compared various sectors against the CNX500 (NIFTY 500 Index), representing over 95% of the free-float market cap of allthe listed stocks.

The Relative Rotation Graph (RRG) shows that the Nifty MIDCAP100, Energy, Media, and Metal Indices are the only ones inside the leading quadrant. These groups are likely to relatively outperform the broader Nifty 500 Index.

The Nifty Pharma, PSE, and Infrastructure Indices are inside the weakening quadrant. They are likely to slow down on their relative performance, while isolated stock-specific performances cannot be ruled out.

The Nifty PSU Bank Index, Services Sector Index, IT, Financial Services, and Nifty Bank Index are seen languishing inside the lagging quadrant. These groups may relatively underperform the broader markets. The Nifty Auto Index is also inside the lagging quadrant; however, it is seen improving its relative momentum.

While Realty and the FMCG Index stay inside the improving quadrant, the FMCG Index is seen giving up on its relative momentum.

Important Note: RRGTM charts show the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against the NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals.

An 8% rally in the past two trading sessions helped Fractal Analytics cross its initial public offering (IPO) price on Wednesday for the first time since its listing in February. India’s first pureplay AI company, which launched a Rs 2,844 crore public issue, has struggled to attract retail investors, with their shareholding falling by 110 bps in the March quarter despite AI remaining a major market buzzword.

By retail ownership, we mean individual investors holding shares worth Rs 2 lakh in a company.

Retail investors held nearly 1.39 crore shares, or an 8.08% stake in the company, as per BSE shareholding data filed on February 16 — the stock’s listing day. This declined to 1.20 crore shares, representing a 6.98% stake, in the March quarter, according to the latest data released on April 20.

Fractal Analytics boasts investments from an ensemble of marquee investors. The company raised Rs 1,249 crore from anchor investors including leading mutual funds such as SBI Mutual Fund, ICICI Prudential Mutual Fund, Motilal Oswal Mutual Fund and UTI Mutual Fund. Insurance stalwarts like the Life Insurance Corporation of India (LIC), HDFC Life Insurance and SBI Life Insurance also participated in the anchor bidding.

Founded in 2000, Fractal is an enterprise AI company delivering data-driven insights and assisting businesses in their decision-making through its end-to-end AI solutions.

The IPO of Fractal Analytics opened for bidding on February 9 and closed on February 11 at a price band of Rs 857 to Rs 900. The offer, a combination of a fresh issue of 1.14 crore shares aggregating to Rs 1,025.58 crores and an offer for sale (OFS) of 2.01 crore (Rs 1,808.32 crore), saw the retail quota fully subscribed (1.03 times).

The overall subscription stood at 2.66 times, led by Qualified Institutional Buyers (QIBs) who bid for their allocated quota 4.18 times. Also read: Monolithisch’s promoter Prabhat Tekriwal mints 3,390% returns as SME stock delivers 243% over IPO price

Fractal’s share price performance

The stock had a lackluster listing at Rs 900 on the BSE and at Rs 876 on the NSE, recording a 2.7% discount over the issue price. Today, it bettered its previous high of Rs 921, hitting the day’s high of Rs 929 before closing at Rs 905.

The stock had a muted debut, listing at Rs 900 on the BSE and Rs 876 on the NSE, a 2.7% discount to the issue price. It later surpassed its previous high of Rs 921, touching an intraday peak of Rs 929 before settling at Rs 905.

What should investors do?

While the sentiment for the stock remains subdued, Dr. Ravi Singh, Chief Research Officer from Master Capital Services calls the AI space structurally strong and potentially lucrative. However, he cautions investors to not fall for euphoria around any new-age theme.

Notwithstanding the earlier drop in retail participation, confidence seems to be returning, albeit slowly. “For now, the short-term trend has definitely improved. But for this move to sustain, the stock needs to hold above 880–900. If it manages that, upside can continue; otherwise, it may slip back into a consolidation phase,” Dr. Singh said.

“Fractal Analytics is finally showing some signs of recovery after a pretty weak start post listing. The bounce from the 740–750 zone has been quite sharp, which clearly suggests that fresh buying has come in at lower levels. That said, this still feels more like a recovery after a steep fall rather than a strong, long-term breakout. The 920–940 zone will be crucial to watch, as the stock faced selling pressure here earlier—so some resistance is likely,” he added.

Ashwini Shami, President & Chief Portfolio Manager at OmniScience Capital told ETMarkets that the theme in India is at a very nascent stage unlike in developed economies. He sees AI promise in sectors like power and data centers.

Shami also refused to buy the view that AI could potentially cannibalise the IT sector, arguing that AI will need the support of tech services and cannot function independently.

Brokerages like SBI Securities and Angel One had taken a ‘Neutral’ view on the IPO around the launch time.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

Indian stock markets ended on a positive note on Thursday, navigating sharp intraday volatility. After a steep early decline, benchmark indices staged a strong recovery, with the Sensex and Nifty closing marginally higher, marking their second straight session of gains in the new financial year FY27.

Looking ahead, markets are likely to remain highly volatile and event-driven, with near-term direction largely contingent on developments in the Middle East, particularly the evolving situation around the Strait of Hormuz. Any prolonged disruption could keep crude prices elevated above the $100 mark, intensifying inflationary and current account pressures while sustaining a risk-off sentiment.

Here are 5 factors that could steer market action on April 6

1) Iran’s deal deadline nears

The conflict between Iran and the US-Israel alliance continues to escalate, with leaders on all sides warning that the situation could worsen further. As Iran approaches US President Donald Trump’s April 6 deadline for a peace deal, Trump on Saturday warned the Islamic Republic that “all hell will break loose” within 48 hours if Tehran fails to meet his demands, including reopening the crucial Strait of Hormuz.

In a post on Truth Social, Trump said, “Remember when I gave Iran ten days to MAKE A DEAL or OPEN UP THE HORMUZ STRAIT. Time is running out– 48 hours before all hell will reign down on them. Glory be to GOD!”

2) Crude oil hovers at $110

Oil prices have witnessed a sharp surge in 2026, with Brent crude recording an extraordinary 56% monthly gain—its strongest rally on record, amid escalating tensions between the U.S. and Iran. The global oil market has remained under significant pressure, as Donald Trump signalled the possibility of intensified military action, driving crude prices toward multi-year highs. Brent crude briefly crossed $109 before easing to around $106, while WTI crude climbed above $111, reflecting tightening supply concerns and a rising geopolitical risk premium.

Markets have been rattled as the escalating conflict in the Middle East has disrupted shipping and energy exports through the crucial Strait of Hormuz. This narrow chokepoint between Iran and Oman typically carries around one-fifth of the world’s crude oil and liquefied natural gas supplies. In practical terms, oil equivalent to nearly 20% of global demand passes through the strait every day.

3) FII exodus continues

March witnessed massive selling by foreign portfolio investors (FPIs) to the tune of Rs 1.22 lakh crore, marking the highest-ever monthly outflow. This record selling was driven by a confluence of factors, including the ongoing conflict, a sharp spike in crude oil prices above the $100 mark, the steady depreciation of the rupee, and a strengthening US dollar.Sustained FPI selling has, however, corrected Indian market valuations, making them fair and, in certain segments, even attractive. That said, a meaningful revival in FPI inflows will likely depend on a de-escalation in geopolitical tensions, which could lead to a moderation in crude oil prices.

4.) RBI curbs halting Rupee decline

The Indian rupee jumped sharply against the US dollar on Thursday, recording its steepest single-day rise in more than 12 years after the Reserve Bank of India (RBI) extended curbs on offshore derivatives to protect the currency from its free fall. The rupee closed 1.8% higher at 93.10 against the US dollar, compared with the previous close of 94.83.

This came after the RBI on Wednesday barred banks from offering rupee non-deliverable forwards (NDFs) to resident and non-resident clients. Banks can still offer deliverable FX contracts for hedging, but users cannot offset those trades with positions taken offshore. The measures disrupted a $149 billion-a-day market and are being described by analysts as among the toughest in over a decade.

5) Weak technical set up

The Nifty is currently stabilising near the 22,700 zone, but the overall structure still reflects a corrective bias. The market is holding, but not showing strong momentum. A breakdown below 22,300 could accelerate selling pressure and push the index towards the 22,000–21,800 zone, a crucial support area.

On the upside, 22,800–23,000 remains an immediate resistance band, followed by a stronger supply zone at 23,200–23,500. Only a sustained move above these levels would indicate a meaningful recovery. Momentum indicators continue to remain weak, signalling a lack of strength in the current move.

The Sensex is stabilising near the 73,300 zone after recent volatility, but the overall structure remains fragile. Immediate resistance is placed in the 73,800-74,000 range, while a sustained move above 75,000 is required to meaningfully improve sentiment.

On the downside, a break below 72,000 could extend the correction towards the 71,500–71,000 zone. While selective buying may emerge at lower levels, strong conviction remains absent.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Nifty closed with gains on Wednesday, recording its third positive close amid buying trends in consumer, financial and metal stocks though the IT sector dragged markets. The Nifty gave a consolidation breakout on the 15-minute chart, leading to a rally towards the end of the session.

Rupak De, Senior Technical Analyst at LKP Securities said that the sentiments have improved significantly over the last three sessions as the index reclaimed the 25,500 support after a brief decline and then crossed the 25,800 resistance, providing double confirmation of strength. “In the short term, 25,500 is likely to act as a crucial support level. As long as it holds, buyers are likely to dominate. On the higher end, the index may extend gains towards 26,000 and above,” he added.

Here are 2 stock recommendations for Thursday:

Buy Bank of India at Rs 172.55 | Upside: 8%

Stop Loss: Rs 165

Target: Rs 187

The stock has registered a decisive breakout from its consolidation range, indicating the beginning of a fresh upward phase. It is currently trading above all major exponential moving averages — 20, 50, 100, and 200 EMAs — confirming a positive short- to mid-term trend structure. Momentum remains supportive, with the RSI at 64.01, positioned above its 14-period average of 57.29, signaling continued bullish momentum. Importantly, the RSI is not yet in the overbought zone, suggesting there is room for further upside and the potential to achieve higher price targets in the near term.(Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio)

Buy Bank of Maharashtra at Rs 68.99 | Upside: 8%

Stop Loss: Rs 66.25

Target: Rs 74.5

The stock has delivered a decisive breakout from its consolidation range, signaling the start of a fresh upward move. It is now trading above all major exponential moving averages — 20, 50, 100, and 200 EMAs — confirming a positive short- to mid-term trend. Momentum indicators further support the bullish outlook, with the RSI at 65.9, trading above its 14-period average of 55.5. The RSI remains below the overbought zone, indicating healthy momentum and suggesting that the stock has the potential to achieve higher upside targets in the near term.

(Kunal Kamble, Sr. Technical Research Analyst, Bonanza Portfolio)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

The Indian market ended lower on Friday, with benchmark indices Sensex and Nifty retreating from recent highs as investors turned defensive ahead of the Union Budget this weekend.

By the end of the session, the benchmarks had pared some losses, with the Sensex down 296.59 points or 0.36% at 82,269.78, while the Nifty fell 98 points or 0.39% to end at 25,320.65.

Here’s how analysts read the market pulse:

Indian equity markets remained volatile ahead of the Union Budget, with benchmark indices dragged lower by weakness in IT and metal stocks, said Vinod Nair, Head of Research at Geojit Investments, adding that the IT sector lagged due to global growth concerns and higher U.S. bond yields, while gold and silver declined amid a stronger dollar and persistent FII selling and continued rupee depreciation kept market sentiment cautious. “With geopolitical risks and global tariff pressures rising, the Union Budget is keenly awaited for cues on growth support and fiscal discipline. Globally, although a deal to avert the latest U.S. government shutdown provided temporary relief, markets remain watchful ahead of the appointment of a new Fed Chair, as a more hawkish stance could tighten liquidity and weigh on emerging markets,” said Nair.

Also read: A ‘non-event Budget’ for stock market: Is that good news for Nifty which fell 1,000 points in January?

US markets

Wall Street slipped on Friday as investors viewed President Donald Trump’s pick of former Fed Governor Kevin Warsh—seen as a hawkish choice—to replace Jerome Powell, while contending with mixed earnings, hot inflation data, and rising geopolitical and shutdown risks. The Dow fell 0.36% to 48,892.47, the S&P 500 dropped 0.43% to 6,939.03, and the Nasdaq slid 0.94% to 23,461.82. The S&P 500 recorded 19 new 52-week highs and 10 lows, while the Nasdaq logged 72 highs and 205 lows.

European Markets

Europe’s benchmark share index closed higher on Friday, extending its longest monthly winning streak since 2021 as investors digested corporate earnings and reacted to U.S. President Donald Trump’s nomination of a former Federal Reserve policymaker to lead the central bank. The index rose 0.6% to 611 points and is on track to end January with a 3% gain, marking its seventh straight monthly advance. Banking stocks led the rally, rising 1.7%, with Caixabank jumping 6.7% after the Spanish lender projected stronger lending income and profits for this year and next.

Tech View

Technically, after a gap down, the market hovered between the 25,200/82000 to 25,350/82400 price range throughout the day, said Shrikant Chouhan, Head Equity Research at Kotak Securities, adding that the narrow range activity on intraday charts and the small candle on daily charts indicate indecisiveness between the bulls and the bears.

“We are of the view that as long as the market trades above 25,200/82000, a positive sentiment is likely to continue. On the higher side, the market could move up to 25,500/82800. Further upside may also extend, potentially lifting the index up to 25,600-25,675/83000-83200. On the flip side, if the market falls below 25,200/82000, weakness is likely to increase. In such a case, we could see a quick intraday dip down to 25,000-24,900/81500-81200,” said Chouhan.

Also read: Sensex, Nifty’s pre-Budget correction a blessing in disguise? Here’s what 15-year data shows

Most active stocks in terms of turnover

Hindustan Copper (Rs 7,917 crore), Vedanta (Rs 3,853 crore), ICICI Bank (Rs 3,279 crore), Hindustan Zinc (Rs 3,248 crore), HDFC Bank (Rs 2,767 crore), Dixon Tech (Rs 2,103 crore) and Axis Bank (Rs 2,023 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.

Most active stocks in volume terms

Vodafone Idea (Traded shares: 173 crore), Hindustan Copper (Traded shares: 11.3 crore), YES Bank (Traded shares: 8.19 crore), Ola Electric Mobility (Traded shares: 6.34 crore), Suzlon Energy (Traded shares: 6.04 crore), JP Power (Traded shares: 5.6 crore) and Vedanta (Traded shares: 5.4 crore) were among the most actively traded stocks in volume terms on NSE.

Stocks showing buying interest

Shares of Vodafone Idea, Orient Refractories, Signatureglobal (India), Tata Teleservices, OneSource Specialty, GRSE and Triveni Engineering & Industries were among the stocks that witnessed strong buying interest from market participants.

Also read: CME raises gold, silver margins after steepest single-day plunges in decades

52 Week high

Over 78 stocks hit their 52-week highs today, while 291 stocks slipped to their 52-week lows. Among the ones which hit their 52-week highs included Nestle India, Axis Bank and SBI.

Stocks seeing selling pressure

Stocks which witnessed significant selling pressure were Hindustan Zinc, Vedanta, NALCO, Hindustan Copper, Graphite India, NTPC Green Energy and Gujarat Mineral Development Corporation.

Sentiment meter bullish

The market sentiments were bullish. Out of the 4,367 stocks that traded on the BSE on Friday, 1,783 stocks witnessed declines, 2,424 saw advances, while 160 stocks remained unchanged.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

Nifty ended its three-session losing streak on Thursday amid strong buying trends in most indices though pharma, metal and auto stocks took the leadership positions. The index managed to close above the 200DMA for the second consecutive day.

Commenting on the current trends, Rupak De, Senior Technical Analyst at LKP Securities said that the overall sentiment remains weak as the index consolidated after a positive start, supported by strong global cues.

“Nifty faced resistance near the 38.20% Fibonacci retracement level, resulting in a decline from the day’s high of 25,435 to 25,168 before closing near the midpoint of the session’s range. Although the index managed to close above the 200DMA for the second consecutive day, weakness continued as reflected by the elevated India VIX, which stood at 13.35. In the short term, the index is likely to remain volatile on Friday. Resistance is placed in the 25,480–25,500 zone, while support is seen around 25,125,” De added.

Here are 2 stock recommendations for Friday:

Buy Ujjivan SFB at Rs 62 | Upside: 8%

Target: Rs 57

Stop Loss: Rs 67Ujjivan Small Finance Bank has confirmed a trend reversal into a higher high higher low structure, indicating strengthening bullish momentum. The stock has decisively broken above the long-term downward sloping trendline, supported by expanding volumes, which validates the breakout. Price is trading comfortably above key moving averages, with the 20 and 50 EMA acting as dynamic supports near Rs 55–Rs 57, reinforcing a buy-on-dips setup. RSI is holding above 65, reflecting strong momentum without being excessively overbought. As long as the stock sustains above the breakout base, the trend remains constructive, with scope for further upside continuation in the medium term while dips are likely to attract buying interest.

(Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio)

Buy SBI at Rs 1,048 | Upside: 6%

Target: Rs 1,080

Stop Loss: 990

State Bank of India is clearly exhibiting a classic HH–HL formation, confirming a sustained uptrend on the daily timeframe. Price has consistently made higher swing highs above Rs 1,000 and higher swing lows near the rising 20–50 EMA zone (Rs 980–Rs 995), indicating strong demand on dips. The recent consolidation just below Rs 1,050 followed by a breakout reinforces trend continuation rather than exhaustion. All key moving averages are stacked positively, which supports bullish structure. RSI holding in the 60–70 zone reflects healthy momentum without extreme overbought. As long as SBI holds above the last higher low near Rs 990, the HH–HL structure remains intact, keeping the bias bullish with buy-on-dips strategy; only a sustained break below this level would threaten the trend.

(Drumil Vithlani, Technical Research Analyst, Bonanza Portfolio)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Nifty fell for a third day in a row amid selling pressure in auto, financials and FMCG stocks though selective buying in auto and energy stocks checked the losses. The index has remained in the bears’ grip, as the index stayed below the 21 EMA for yet another session, confirming a bearish short-term trend.
Commenting on the current trends, Rupak De, Senior Technical Analyst at LKP Securities said that the overall market breadth remains weak with RSI also maintaining a bearish tone and continuing with its bearish crossover. “On the lower end, the index once again found support at the 50 EMA. However, repeated retesting of a moving average within a short span raises doubts about the strength of this support. A decisive slip below 25,700 could trigger a correction towards 25,500–25,400. On the higher end, the 25,950–26,000 zone is likely to act as a crucial resistance area,” De said.

Here are 2 stock recommendations for Thursday:

India’s benchmark index Nifty ended Diwali trade on a strong note, powered by a stellar show from index heavyweight Reliance Industries (RIL). It scaled a fresh 52-week highs in today’s session. The market started with a gap-up and remained volatile throughout the day.
Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities, said that though Nifty touched a high of 25,926, there was some profit-taking at higher levels. The overall sentiment is likely to remain strong, with the potential to reach 26,000–26,200 in the short term. “The technical setup remains positive as long as the index stays above 25,700, below which it may move back into consolidation,” De added.
Here are 2 stock recommendations for Tuesday: