The Indian stock market experienced a week of tight consolidation, with the benchmark Nifty 50 index moving within a narrow range. The index briefly dipped below the 25,500 mark, indicating early selling pressure, but managed to recover from lower levels. Despite this rebound, the upside movement remained limited as Nifty struggled to break past the 25,900 resistance zone.
Market Conditions Remain Cautious
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, observed that the overall markets stayed range-bound. This cautious sentiment emerged amid mixed global cues and the ongoing third-quarter earnings season. Investors appeared selective rather than aggressive in their positioning.
From a technical perspective, Nifty has been moving sideways following last week's unsuccessful breakout attempt and subsequent sharp reversal. The index has maintained its position above the crucial 25,400 support level, reinforcing this as an important near-term demand area.
Technical Outlook and Volatility
"The Nifty is oscillating within the 25,400–25,900 band, reflecting uncertainty and lack of strong directional momentum," said Patel. "A clear breakout above 25,900 could signal the start of a fresh upward move, while a decisive fall below 25,400 would indicate renewed downside risk and shape the next phase of the trend."
Market volatility has shown signs of increasing, with India VIX recovering to around 11 from recent lows near 9. This movement highlights that market complacency is easing and sharper price movements are becoming possible. In this environment, Patel recommends a prudent and confirmation-based approach to trading.
Three Stock Recommendations for Short-Term Gains
Jigar Patel has identified three stocks that present potential opportunities for the next one to two weeks. Each recommendation comes with specific buying zones, target prices, and stop loss levels to manage risk effectively.
Bajaj Auto: Constructive Pullback Opportunity
Buying zone: ₹9,500 to ₹9,400
Target price: ₹10,350
Stop loss: ₹9,000
Patel highlighted that Bajaj Auto has entered a healthy pullback phase after breaking above its long-term falling trendline. Such pullbacks are often considered constructive as they allow prices to consolidate and attract fresh buying interest without damaging the overall trend structure.
Technical indicators support this positive outlook. The Directional Movement Index shows the positive line clearly in control, suggesting that buying strength remains dominant. The Average Directional Index holds above the 20 level, indicating that the trend is gaining stability and strength. Meanwhile, the MACD remains above the zero line, reflecting positive momentum and supporting the continuation of the bullish trend.
"Based on this technical combination, the pullback is viewed as an opportunity rather than a sign of weakness," said Patel. "Hence, a buy-on-decline approach is advised in the ₹9,500–9,400 zone, with a stop loss at ₹9,000 to manage risk. On the upside, the stock has the potential to move towards the ₹10,350 level in the coming sessions, provided broader market conditions remain supportive."
Balkrishna Industries: Multiple Bullish Signals
Buying zone: ₹2,440 to ₹2,400
Target price: ₹2,600
Stop loss: ₹2,300
Balkrishna Industries has shown strong improvement in its technical structure, supported by multiple bullish signals. The 9 and 26 DEMA have delivered a bullish crossover, indicating a shift in short-term momentum in favor of the bulls. Additionally, the stock has confirmed a breakout above its falling trendline, suggesting a change in the medium-term trend.
Momentum indicators further strengthen the positive outlook. The DMI has recorded a bullish crossover, reflecting increasing buying pressure, while the MACD has moved above the zero line, highlighting a transition into positive momentum territory.
"Considering this confluence of technical signals, a buy-on-dips strategy is recommended in the ₹2,440–2,400 zone, with a stop loss placed at ₹2,300," said Patel. "On the upside, the stock has the potential to move towards the ₹2,600 level in the near term."
Tata Elxsi: Strong Breakout Confirmation
Buying zone: ₹5,600 to ₹5,500
Target price: ₹6,250
Stop loss: ₹5,200
Tata Elxsi's share price has successfully retested its breakout zone, confirming the strength and sustainability of the recent breakout. Volumes are picking up near lower levels, indicating strong accumulation interest and reinforcing the positive price structure. The breakout above the falling trendline further supports a shift in the medium-term trend from bearish to bullish.
On the momentum front, the MACD is positioned above the zero line, signalling positive momentum, while the DMI continues to reflect bullish dominance. Additionally, the ADX is holding above the 25 level, suggesting that the emerging trend is gaining strength and reliability.
"Considering this strong alignment of price action and indicators, a buy-on-dips strategy is advised in the ₹5,600–5,500 zone, with a stop loss at ₹5,200," said Patel. "On the upside, the stock has the potential to move towards the ₹6,250 level in the near term."
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
