Charts signal more pain ahead for Nifty; select stocks still offer tactical opportunities: Nagaraj Shetti

With volatility on the rise and a truncated trading week ahead, market participants are closely watching technical signals for direction. While global cues and macro uncertainties remain fluid, charts indicate that the Nifty may continue to face downward pressure in the near term.

Technical analyst Nagaraj Shetti from HDFC Securities believes the trend remains firmly bearish.

“No doubt market is in a downtrend. Every rise is being sold. Lower tops and bottoms over the past month indicate bears are in control. The recent bounce near 23,400–23,500 has formed a lower top. Nifty could break 22,450 next week and slide towards 22,000 in the coming weeks.”

Weak Supports Amid Global Pressure

Despite intermittent recoveries, the underlying weakness persists, with global factors weighing heavily on sentiment.

“I do not think stability will come soon. Markets are echoing global pressure—rupee and crude are key concerns. The 22,450 level is just a psychological support. Given the bearish pattern, we could soon break below this level.”

Coal India Shows Relative Strength

Even in a falling market, some stocks are holding up better than the benchmark.“Coal India has corrected, but the trend remains positive with higher tops and bottoms. Around 430–435 is strong support. The stock could bounce back towards 475–480 in the near term.”

Stock Strategy: Buy Strength, Sell Weakness

Shetti suggests a balanced approach with opportunities on both sides of the market.

“Ather Energy is in a strong uptrend with consistent higher tops and bottoms. It has broken key resistance near 750–760. One can buy around current levels for a target of 850, with a stop loss at 760.”

“On the short side, BDL is weak with a clear bearish pattern. One can sell around current levels for a target of 1070, keeping a stop loss at 1160.”

Outlook

With multiple expiries and limited trading sessions ahead, volatility is likely to remain high. While selective stocks may outperform, the broader market trend continues to favour caution, with charts pointing towards further downside in the Nifty.