Angel One: Nifty Technical Setup Weak, Trent in Top 3 Stock Picks

Market Outlook: Nifty’s Technical Weakness Persists Amid Stock Picks from Angel One

Despite a slight recovery, the Nifty’s technical setup remains fragile, prompting cautious investor sentiment.

Volatile Trading Week for Benchmark Indices

The past week has been marked by significant volatility in the Indian equity markets, driven by a confluence of global uncertainties, rising bond yields, and fluctuating crude oil prices. The Reserve Bank of India’s recent rate hike has further compounded investor anxiety, resulting in a challenging trading environment. The Nifty50 index, which had been on a downward trajectory for eight consecutive weeks, finally managed to break its losing streak, ending the week with a modest gain of 0.44%, closing just above the crucial 22,500 mark.

Despite this uptick, the broader technical structure remains weak, characterized by lower bottoms that indicate a persistent bearish trend. The index is approaching a critical support zone, aligning with lows recorded in April 2025 and April 2026. A ‘Doji’ candlestick formation on the weekly chart offers a glimmer of hope for a potential relief rally, but a decisive breakout above previous swing highs is essential for a meaningful trend reversal.

Key Support and Resistance Levels

From a technical standpoint, the 22,200-22,000 zone emerges as a crucial support threshold. A decisive breach below this range could further weaken the market structure, potentially accelerating selling pressure towards the 21,750-21,700 levels. Conversely, immediate resistance is seen around 22,750-22,800, with the psychological 23,000 mark acting as a significant barrier. A sustained move above these resistance levels is necessary to revive buying momentum and provide near-term relief.

Stock Picks from Angel One

In light of the current market conditions, Angel One has identified several stock picks that exhibit bullish potential. Osho Krishan, Chief Manager of Technical & Derivative Research at Angel One, has provided insights into three stocks that investors might consider:

• Persistent Systems: Last Close: ₹5,770. Recommended to Buy around ₹5,700 with a Stop loss at ₹5,300 and a Target of ₹6,300-6,400.
• Physicswallah Ltd: Last Close: ₹143. Recommended to Buy around ₹138-135 with a Stop loss at ₹125 and a Target of ₹160.
• Trent: Last Close: ₹2,920. Recommended to Buy around ₹2,900 with a Stop loss at ₹2,700 and a Target of ₹3,200-3,250.

Investor Sentiment and Caution

Given the ongoing uncertainties and the mixed technical signals, a cautious approach is advisable for investors. Maintaining disciplined risk management and focusing on stock-specific fundamentals will be crucial as the quarterly earnings season unfolds. Market participants should closely monitor corporate performance and the evolving global landscape to navigate these turbulent waters effectively.

Key Highlights

• The Nifty50 index ended the week at 22,500, gaining 0.44% after a volatile trading session.
• Technical indicators suggest a weak market structure, with critical support at 22,200-22,000.
• Immediate resistance levels are set at 22,750-22,800, with the psychological 23,000 mark looming.
• Angel One recommends stocks: Persistent Systems, Physicswallah, and Trent as bullish picks.
• Investors are urged to adopt a cautious approach amid ongoing market uncertainties.

Investor Note: The current market conditions necessitate a cautious investment strategy, focusing on stock-specific opportunities while closely monitoring global developments and corporate earnings.