According to Palviya, the Nifty is currently testing an important technical level. “If Nifty breaks above 24,400, it can trigger short covering and extend the rally towards 24,600–24,700,” he said, while advising investors that “buy on decline should be your strategy… as long as Nifty is holding above 24,100.” He added that Bank Nifty is also showing a similar structure, noting, “Bank Nifty may see further short covering above 56,800 and could scale up to 57,500.” The overall trend, therefore, continues to favor the bulls as long as key support levels remain intact.
On the sectoral front, Palviya pointed out that several pockets of the market are showing strength, though select segments offer better risk-reward opportunities. “FMCG basket is looking quite interesting… after a long consolidation, stocks are giving breakout,” he said. At the same time, he emphasized that “metal and capital goods sectors are more promising in terms of momentum,” with buying interest persisting even at higher levels. He also observed that “EMS stocks are also showing sign of buying interest,” indicating a broader participation in the rally.
Sharing stock-specific ideas, he highlighted opportunities in select counters. “PNB Housing Finance… has potential to extend gain, with target around 945 and stop loss of 915,” he said. On Mazagon Dock, he noted, “breakout of falling wedge formation… target of 2750 with stop loss of 2575.” These picks reflect a combination of technical breakouts and sustained upward trends.
Defence stocks, meanwhile, remained in focus throughout the week, supported by strong price action and continued investor interest. “Most of the defence stocks have done well… continuity of buying interest is there,” Palviya observed. He added, “Apollo Micro… breakout of long consolidation… above 270, it may move towards 310–315,” while noting that “Zen Tech… breakout after six-month consolidation… above 1600, target could be 1700–1750.” Summing up the space, he said, “overall, this basket is showing sign of buying interest… continuity of uptrend is clearly visible.”
With indices maintaining a pattern of higher highs and higher lows and multiple sectors contributing to the rally, the near-term outlook remains constructive. However, market participants are advised to remain cautious near resistance levels and continue to follow a disciplined approach. The underlying trend remains positive, with a clear preference for buying on dips as the market heads into the coming week.
