Analysts advise holding longs or buying on dips as the market eyes new all-time highs.
Bullish sentiment prevails in Indian equity markets, with the benchmark indices poised to test new highs, according to analysts. They cautioned against shorting the market and pegged key resistance at 25,800.
SEBI-registered analyst Bharat Sharma of Stockace Financial Services noted that the market is witnessing a bullish momentum. While a minor retreat from the upside is possible, it is unlikely to impact the overall trend, he added.
For Monday’s trading session, Sharma identified immediate resistance at 25,650, which, if triggered, could lead to further upside levels. Based on the Fibonacci extension levels, he sees targets in the range of 25,760-25,800 and above, respectively, with 25,800 serving as a major resistance level.
On the downside, 25,580 is seen as immediate support. As long as the market remains above this level, shorting opportunities are limited, Sharma noted. However, if the index fell below 25,580, then further falls to 25,500-25,420-25,360-25,300 are possible.
Sharma believes that the market is heading towards a new all-time high positionally, although intraday retracements may occur as the momentum consolidates.
Analyst Ashish Kyal added that if the Nifty index closes above 25,670 on a 15-minute timeframe, the index will resume a positive trend to 25,790. He sees support on the downside at 25,480.
Kyal advised traders against shorting this market unless there is a close below the prior low. While some short-term profit booking may occur, it is expected to be temporary. For those holding positional longs, he recommends holding as long as the Nifty remains above the stop-loss level of 25,480.
Analyst Varunkumar Patel highlighted that Foreign Institutional Investors (FIIs) have purchased approximately ₹1,400 crore worth of stocks in the cash segment, while reducing their net index short positions by about 1,000 contracts in the F&O market.
Global market sentiment remains stable to positive, boosting FII interest in Indian equities. Consequently, he expects the market to trend upward. The next market trigger would be the second-quarter earnings season that is set to begin in the second week of July.
Until then, he expects the market to trade within the 25,200–26,000 range, with a recommended strategy of ‘buy on dips’ with a strict stop-loss.
And Financial Independence pegged support for the Nifty at 25,520-25,400 and resistance at 25,800-25,940. For the Bank Nifty, they see support between 57,200 and 56,900, with resistance at 57,750 to 58,000.
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