India's Nifty 50 tests 24,000 support as analysts flag short-term picks
India's benchmark Nifty 50 retreated below 24,050 amid rising Middle East tensions and $85 oil, but technical analysts see a floor forming that presents targeted buying opportunities for short-term traders.
India's Nifty 50 fell more than half a per cent on Tuesday, 14 July, dropping below 24,050 as Brent crude approached $85 a barrel. Escalating Middle East tensions fuelled concerns that rising retail inflation could delay global interest rate cuts, pressuring the broader market.
Despite these macroeconomic headwinds, technicians are not abandoning the Indian market. Vishnu Kant Upadhyay of Master Capital Services expects the index to remain range-bound between 23,800 and 24,550, noting that every dip could be an opportunity to build long positions if the 24,000 support holds.
That 24,000 level represents a critical technical floor, acting as the confluence of the index's 21-day and 55-day exponential moving averages. Upadhyay and Hitesh Tailor of Choice Broking have identified five stocks positioned for short-term gains over the next one to two weeks, betting on specific technical breakouts rather than broad market momentum.
Upadhyay favours Sumitomo Chemical, which has broken out of an inverted head and shoulders pattern backed by strong volume. "The breakout, along with improving price structure and sustained momentum, points towards further upside to ₹595," he said.
He also highlighted Home First Finance and Aptus Value Housing Finance as potential trend reversals following prolonged corrections. Both non-bank lenders are trading above their 50-day and 100-day EMAs. Regarding Aptus specifically, Upadhyay noted: "Sustained buying interest and a series of higher highs and higher lows further reinforce the bullish structure. The overall setup suggests the stock is well placed for further upside, with any short-term decline likely to attract fresh buying interest."
Tailor pointed to IT firm Coforge, noting it has broken out of a prolonged sideways consolidation range. "Traders may consider initiating long positions around ₹1,540, while ₹1,465 should be maintained as the key downside risk level. On the upside, the stock has the potential to advance towards ₹1,685, offering a favourable risk-reward opportunity for positional traders," Tailor said.
For Viyash Scientific, Tailor cited a higher-high, higher-low formation supported by rising moving averages and a bullish Supertrend indicator. "Traders may consider accumulating the stock around ₹285, while ₹270 should be maintained as the key downside protection level. On the upside, the stock has the potential to advance towards ₹310, offering a favourable risk-reward opportunity for positional traders," he said.
