Nifty Outlook: Can bulls sustain recovery after 8-week losing streak?

The Nifty’s rebound after eight consecutive weekly declines has raised hopes of a recovery, but a decisive move above 22,550–22,650 is needed to strengthen the outlook.

RUPAK DE, SENIOR TECHNICAL ANALYST, LKP SECURITIES

Index Strategy: Friday’s rebound was a relief rally, not a confirmed reversal, with resistance at 22,600– 22,650, and upside capped near 23,000. A break below 22,100 risks a deeper fall towards 20,800–20,200. Reduce longs on recovery, while medium-term participants can accumulate NiftyBEES on dips at Rs 220–235, targeting Rs 300–305 with a stop loss at Rs 200.

Top stocks for the week

Auro Pharma: Buy | CMP: Rs 1,695 | Target: Rs 1,800 | Stop loss: Rs 1,640

Aurobindo Pharma stock continues to form a higher-top, higher-bottom pattern, indicating a positive trend. A hidden positive divergence on the daily RSI suggests the prevailing uptrend could continue.

Go Digit: Buy | CMP: Rs 273 | Target: Rs 300 | Stop loss: Rs 264.

The stock has broken out of a consolidation range, indicating improving price momentum. A positive divergence on the daily RSI supports the possibility of further short-term upside.

Read more: Weekly Market Outlook: Nifty snaps 8-week losing streak, but can bulls reclaim the crucial 200-week moving average?

RAHUL SHARMA, DIRECTOR AND HEAD OF TECHNICAL & DERIVATIVES RESEARCH, JM FINANCIAL SERVICES

Index Strategy: Nifty’s positive weekly close after eight consecutive negative closes was encouraging, but a sustained close above 22,550 is needed to confirm a short-term reversal. A breakout could open the way towards 22,800 and 23,125. The preferred approach is to “buy on dips rather than sell on a rise,” with 22,350 and 22,200 as immediate supports. Bank Nifty faces resistance at 55,000– 55,600.

Top stocks for the week

TCS: Buy | CMP: Rs 2,156| Target: Rs 2,300 | Stop loss: Rs 2,075

Strong post-result price action and renewed buying interest in IT make TCS attractive. A sustained move above Rs 2,200 could accelerate its recovery.

Federal Bank: Buy | CMP: Rs 330 | Target: Rs 350| Stop loss: Rs 313.75.

The stock has remained resilient amid volatility and is sustaining above short-term moving averages. Private banks remain attractive on the back of their relative strength.

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ANAND JAMES, CHIEF MARKET STRATEGIST, GEOJIT INVESTMENTS

Index Strategy: The Nifty’s biggest intraday recovery since the downtrend began in early August signals potential further gains towards 23,200. A break above 22,630 could con rm an upswing, while a fall below Friday’s 22,295 could drag it to 22,070–21,600. Buy Nifty above 22,630 for 22,800–23,200, with a stop loss at 22,440. Sell, if the index falls below 22,295 with target of 22,070–21,600 with a stop loss at 22,538.

Top Stocks For the week

Coforge: Buy | CMP: Rs 1,865 | Target: Rs 2,160 | Stop loss: Rs 1,659

The stock, which has been in a long-term uptrend since 2017, has faced resistance near Rs 2,000. A breakout above Rs 2,000–2,010 could lift it to Rs 2,200–2,330, while weakness below Rs 1,659 risks Rs 1,520–1,500.

Tanla: Buy | CMP: Rs 501 | Target: Rs 600 | Stop loss: Rs 442

Its 25% sell-off from August peak is easing as it nears May’s lows and a key trendline. A move above the 10-day average could lift it towards Rs 600, while failure risks Rs 442 and Rs 366.