Anand Rathi sees Nifty support at 23,500, backs Swiggy and Tata Power
A recent volatility spike in Indian equities has created a buying opportunity for short-term investors targeting specific technical support levels.
Indian equities weathered a mid-week volatility spike, with the Nifty 50 closing down just 0.26% for the week ending July 10. The calm followed a sharp 26% surge in the India VIX on July 8 that briefly pushed the benchmark down 2.12%.
Despite the turbulence, Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, said the broader market structure remains constructive. "As long as these levels hold, our strategy continues to be 'buy on dips,' as the broader market structure remains positive, and further upside cannot be ruled out," Patel said.
After trading between an intraday high of 24,530.90 and a low of 23,805.20, Patel identifies 23,800 as immediate Nifty support. A further corrective leg toward a 6 June bullish gap near 23,650 would complete an ABC pattern on the daily chart. He views such a decline as a healthy retracement rather than a trend reversal, offering a chance to accumulate quality stocks.
Resistance for the Nifty sits between 24,300 and 24,600. Meanwhile, the Bank Nifty is expected to trade sideways due to flat moving averages. "A decisive close above 59,000 would confirm a fresh leg of the uptrend and open the door for higher levels, whereas a break below 57,000 could trigger a short-term corrective phase," Patel said.
Short-term picks
For the next one to two weeks, Patel recommends Swiggy, citing a strong surge in cumulative volume delta that indicates fresh institutional accumulation. The stock appears to be reversing a five-wave decline. "From a time-cycle perspective, the stock has respected a recurring cycle of nearly 38–41 weeks between major swing highs, and the latest cycle suggests the possibility of a fresh upward leg," said Patel.
Tata Power is also on the list, with Patel pointing to a historical demand zone between ₹365 and ₹375. A bullish divergence in volume delta suggests selling pressure is easing despite lower price lows, a sign of gradual institutional accumulation. The stock recently retraced 78.6% of its previous up move, hitting critical internal Fibonacci support.
The third recommendation is MRPL, which is holding support near a rising trendline and its Ichimoku Cloud base around ₹145 to ₹150. Positive volume delta and a daily relative strength index hovering near 60 reinforce the improving technical setup. "The confluence of trendline support, flat cloud support, positive CVD, and strengthening momentum keeps the broader outlook constructive with a buy-on-dips bias," said Patel.
