Nifty outlook bearish, but near-term recovery in sight: Analysts

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TIL Creatives

While bearish signals dominate the broader outlook, a close above a key technical indicator suggests scope for a near-term recovery.

TANMAY SHAH, HEAD OF TECHNICAL RESEARCH, SIHL

The Nifty is consolidating around its 200-week moving average, with 22,150 emerging as crucial support. A close above the daily supertrend indicator (5,1,5) at 22,560 signals improving near-term momentum and scope for recovery.

Nifty Strategy: For the November 3, 2026, expiry, buy the 22,600 call at Rs 249 and sell the 22,950 call at Rs 110. The bull call spread has a net debit of Rs 139, a stop-loss at Rs 60 on the spread premium and a target of Rs 270.

ET Bureau

TOP STOCKS FOR THE WEEK

IGIL: Buy | CMP: Rs 381.15 | Target: Rs 406 | Stop loss: Rs 358.

A strong move following prolonged consolidation, healthy delivery volumes and a fi rm RSI indicate renewed buying interest.

JSW Cement: Buy | CMP: Rs 116.98 | Target: Rs 121.70 | Stop loss: Rs 113.

A sustained close above the 20-day moving average and an RSI above 50 indicate strengthening momentum.

SUMEET BAGADIA, TECHNICAL ANALYST AND EXECUTIVE DIRECTOR, CHOICE EQUITY BROKING

Nifty’s weekly RSI at 37.34 indicates weak momentum. Support is placed at 22,200–22,350, with resistance at 23,000. The outlook remains bearish below this level.

Nifty Strategy: Sell November futures on rallies towards 22,900, with a stop loss at 23,200 and targets of 22,500 and 22,300. The futures were quoted at 22,679.90.

Bank Nifty Strategy: Sell November futures on rallies towards 54,800– 55,000, with a stop-loss at 55,500 and targets of 54,000 and 53,700. The futures were at 54,562.

TOP STOCKS FOR THE WEEK

Cipla: Buy | CMP: Rs 1,338 | Target: Rs 1,450 | Stop loss: Rs 1,265.

A breakout above the previous week’s high and a Hammer pattern indicate recovery potential, with the stock holding above its 200-week EMA.

ONGC: Buy | CMP: Rs 227.50 | Target: Rs 250 | Stop loss: Rs 215.

A breakout from sideways consolidation, rising volumes, MACD crossover and trading above the 20-day EMA support the bullish setup.

SUDEEP SHAH, HEAD OF TECHNICAL AND DERIVATIVE RESEARCH, SBI SECURITIES

The Nifty’s recovery attempt stalled near the 38.2% Fibonacci retracement level around 23,200, resulting in a bearish weekly candle. The index remains below key moving averages, with the daily RSI approaching 40. Support lies at 22,350–22,300; a break below 22,300 could drag the index towards 22,000. Resistance is placed at 22,800–22,850, near the 20-day EMA.

Nifty Strategy: Avoid aggressive leveraged positions and consider staggered buying in fundamentally strong stocks. Nifty IT remains relatively resilient, while CPSE, PSE, Defence, Consumer Durables, Oil & Gas, Energy, Financial Services, Capital Markets, FMCG, Commodities, Metals, Realty and Chemicals may remain under pressure.

TOP STOCKS FOR THE WEEK

Bharti Hexa: Buy | CMP: Rs 1,638 | Target: Rs 1,760 | Stop loss: Rs 1,575.

The stock is consolidating in the Rs 1,578–1,679 range, with resistance at Rs 1,675–1,680. Accumulation is recommended at Rs 1,625–1,645.

IPCA Laboratories: Buy | CMP: Rs 1,954 | Target: Rs 2,050–2,080.

The stock has outperformed the broader market after recovering from Rs 1,800. A sustained move above Rs 2,000 could pave the way for Rs 2,050–2,080.