The Nifty's early-week rally got a boost from favorable geopolitical developments, pushing the index past the closely watched 24,000 mark. But according to Akshay Bhagwat, Associate Director - Derivatives Research at JM Financial Services, the real question now is whether that level can hold as support — and his charts suggest it can.
Nifty's next stop: 24,600
Speaking to ET Now, Bhagwat said the market's technical structure remains strong, with the ongoing recovery rally pointing toward a positional target of 24,600 — a level last seen during April's highs.
In the near term, he flagged 24,100 as a minor resistance zone where some choppiness could emerge. But he characterized the broader support around 23,800 for the June series as solid, adding that any short-term dips should be treated as buying opportunities rather than warning signs, given the strength of the larger trend.
IT stocks: The sector still stuck in the penalty box
While the broader market looks constructive, Bhagwat was far less optimistic about Nifty IT, which emerged as the day's biggest sectoral loser following sharp cuts in several large-cap names.
He described the index as still negative overall, attempting to hold the 27,500 support level. The pattern he's watching: every recovery attempt in IT has been met with renewed selling pressure, and the sector has been a notable drag on the broader Nifty.
His near-term view is essentially neutral-to-bearish — he's not calling for a sharp further decline, but he believes the sector is still searching for a bottom. His strategy recommendation for the June series: sell into any rallies rather than buy the dips, at least for now.
Two stock picks from the charts
Bhagwat also shared two technical trade ideas for traders looking at individual names, both framed as his personal market calls rather than guaranteed outcomes.
Bharat Electronics: A defensive-sector stock that's shown a strong recovery rally over the past two sessions, trading around 429 at the time of the interview. Bhagwat pointed to potential upside targets of 450 and 462, with a suggested stop-loss at 403 to manage downside risk.
TVS Motors: After cementing short-term support around 3,300, Bhagwat said the stock looks poised for a breakout above 3,500. If that plays out, he sees room for the stock to run toward 3,650-3,700, again with a 3,300 stop-loss as the risk-management level.
The bigger picture
Bhagwat's overall message blends cautious optimism for the index with sector-specific caution: the broader Nifty trend still favors buyers on dips toward key support zones, but IT remains a sector where rallies are being sold into rather than chased.
As always with technical trade calls, these levels reflect one analyst's chart-based view at a specific point in time, markets can shift quickly on news flow, earnings, or global cues, so traders typically pair such calls with their own risk management rather than treating any single target as guaranteed.
