Market expert Nilesh Jain of Centrum Broking believes the current upward movement in the equity market, particularly for the Nifty50 index, has the potential to continue. This assessment comes after the Nifty reclaimed its significant 100-day moving average (DMA) at 24,050, a level that previously acted as a key resistance point.
Nifty Outlook: Further Gains Expected
In a recent interaction, Jain highlighted that while the market saw heavy selling and a sharp spike in the India VIX recently, the volatility index has since cooled off by approximately 10 percent. This reduction in volatility is providing renewed confidence to investors.
"If Nifty closes above 24,050, then we can expect a follow-up move on the upside towards 24,200-24,400 levels. And, it looks like this pullback upmove is likely to continue," Jain stated.
This technical analysis suggests that a sustained close above the 24,050 mark would confirm the strength of the current rally, paving the way for further gains.
Technical Views on Key Stocks
Bank of Maharashtra (BoM)
Regarding the public sector undertaking (PSU) banking space, Jain anticipates continued pressure in the near term. For Bank of Maharashtra, he identified a crucial support level.
- Support Level: Rs 78
- Recommendation: Use Rs 78 as a strict stop loss.
Bank of Baroda (BoB)
Bank of Baroda has experienced a technical breakdown, according to Jain's analysis. The stock's outlook remains negative until it can reclaim a specific level.
- Breakdown Level: Rs 250
- Negative Setup: Persists until Rs 250 is reclaimed.
- Strategy: Consider a trailing stop loss at Rs 238 for a potential pullback trade towards Rs 250-255.
Tata Consultancy Services (TCS)
With Tata Consultancy Services (TCS) scheduled to announce its Q1 FY27 results soon, Jain offered a cautious perspective on its technical setup.
- Broader Structure: Remains on the negative side.
- Recommendation for Holders: Maintain a strict stop loss at Rs 1,900.
Disclaimer: This article provides market insights for informational purposes only and should not be considered investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.