Markets held ground despite Iran-US tensions
After a sharp rally triggered by hopes of a ceasefire, markets faced fresh pressure after Iran accused the US of violating the ceasefire agreement. The sell-off held off, however, and indices recovered meaningfully from their intraday lows – a sign that underlying sentiment has not deteriorated significantly.
Rahul Sharma, director and head of technical and derivatives research at JM Financial Services, told ET Now that the broader market structure remains constructive. “The undertone of the market is still OK,” he said, pointing to a significant cooling in the India VIX volatility index as evidence that fears are easing rather than building.
Nifty resistance at 24,000; Next target 24,500
On the chart, the Nifty faced stiff resistance at the 24,000 level in the previous session, triggering a mild pullback. Sharma sees this as a temporary pause rather than a trend reversal. Once the Nifty clears the 24,000 hurdle decisively, expect a fresh round of short covering to push the index towards 24,500.
Crucially, Sharma identifies 22,800 as a key support level to watch on the Nifty spot. “The outlook is positive as long as we hold the 22,800 mark,” he said. A breach of that level would be the first sign that the recovery is losing steam.
Live events
Dharmesh Kant sees buying opportunities in largecaps despite volatility; Defence, banks are in focus
Adding to the positive picture, the midcap Nifty index is already outperforming the benchmark — crossing the previous session’s high and trading in positive territory — indicating that risk appetite among broader market participants is returning.
Two stock picks: Vedanta and NTPC Green
Sharma flagged two positional trade setups for investors looking to ride the recovery.
Vedanta stands out in the metals space, which continues to show bullish momentum. The stock is on the verge of a breakout above ₹740. Sharma recommends buying at current levels with a stop loss of ₹698, targeting ₹780 to ₹800 on the upside – a potential gain of around 8-10%.
NTPC is his second pick on the green cash side, offering an estimated 10-12% upside in the near term. Sharma places a stop loss at ₹92 for this trade, making it a well-defined risk-reward setup for positional investors.
Markets may enter an opportunity phase; Focus on Choice Bets: Patience Rally
IT Sector: Worst Price Already?
With TCS set to report earnings later in the day, the IT sector is naturally in the news. The sector was a top performer during the rupee depreciation phase but has seen some improvement recently as currency tailwinds have faded.
Sharma’s chart reading suggests that the market has already absorbed the negative sentiment surrounding IT earnings. “Most of the negatives seem to be factored in,” he said, adding that any positive surprise in the TCS result could lift the entire IT basket.
His preferred trade in IT is Infosys. With shares down around 1.5% on the day, Sharma sees an attractive entry point. He recommends buying around ₹1,325 with a tight stop loss at ₹1,295, targeting an upside of ₹1,380 to ₹1,400 – a clean, event-based setup coupled with an earnings catalyst.
For broader market participants, the key near-term trigger on the Nifty remains near 24,000. A sustained close above this mark could set the stage for more confidence in an ongoing recovery.
The Big Review: Markets near bottom, picky opportunities emerging for FY27
(You can now subscribe to our ETMarkets WhatsApp channel)