Nifty's Downside Cushioned Amid Positive Cycle: Analyst Sees 25,300 Target

Market Update

Nifty 50 continued its recovery on Monday, closing at 24,865 after a sharp gap-down opening, following the US–Israeli strike on Iran. The index made a low near 24,600 but managed an intraday recovery.

Key Developments

• The Gann level of 24,728 has now become an important support zone, with the index closing back above it.
• Nifty 50 is also entering a positive time cycle zone, which may protect the downside.
• A sustained move above 25,050 will indicate the start of gap-filling activity, potentially leading the index towards 25,300 on the upside.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Trading Strategy

• Remain cautious and avoid aggressive participation in derivatives, given the event-driven volatility.
• Consider positional exposure through Index ETFs and stock-specific opportunities selectively.
• Use dips as buying opportunities, as long as 24,600 remains intact.

Stock Picks

• Bharat Electronics: Showed notable relative strength, closing 2% higher despite major indices ending sharply in the red. Upside targets placed around Rs 485–500.
• Finolex Cables: Outperformed the broader indices, closing above the prior day's high for three consecutive sessions. Upside targets placed around Rs 980–1,000.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

Gold

• Gold prices may retest its January 29 high if the situation continues to escalate.
• Currently trading roughly 7% below its all-time high, a gap that can be quickly bridged given the sharp rise in volatility.

Tube Investments of India

• Maintains a higher high–higher low formation, indicating strong underlying bullish momentum.
• Has shown a breakout from a Rounding Bottom pattern, indicating a potential reversal in the daily trend.