The Indian stock market is stuck in a range as tariffs imposed by Donald Trump have pushed investors to the sidelines. However, Shiju Koothupalakkal, Technical Research Analyst at PL Capital, believes certain counters can provide solid returns in the next 3-4 months despite the uncertain market environment. He also remains bullish on the Nifty 50, expecting the index to hit the 26,200 zone by the end of the current calendar year, provided the 200-period SMA zone at 24,000 is sustained in the coming days. Edited excerpts:
Indian stock market’s bull run seems to be ageing. What does the Nifty setup look like and likely target for 2025-end?
The Indian stock market’s bull run might be “ageing” since the index has been losing momentum and witnessed some erosion from the 25,660 zone, with the bias getting weak. But it has been holding on to the crucial support zone at the 24,500 level, which needs to be sustained. The index has a major support near the 200-period SMA level at 24,000, which, if decisively breached below, shall weaken the overall trend and can trigger further profit booking with sentiment getting negative.
For the year-end 2025, we shall consider the initial Nifty 50 target of 26,200 zone provided the 200-period SMA zone at 24,000 is sustained in the coming days.
IT index bled nearly 10% in July amid a tepid Q1 earnings season. Do you see chances of more downside?
IT index has underperformed, hovering near the 34,500 zone. In the last 3 months, it has seen slipping down below the important 50-EMA at 38,100 level and 100-period SMA at 37,000 zone with the bias weakening and signalling furthermore slide in the coming days. The 32,700 zone is the next important support level for the Nifty IT index. For the bias to improve, the index needs to move past the confluence of the important 50-EMA and 100-period SMA at the 36,700 zone, which can establish some conviction and thereafter, can anticipate for further upward move.
The market has been rattled by Trump’s tariff tantrum. Can you recommend 3-4 stocks investors can consider for solid returns in next 2-3 months?
Sure, Trump’s Tariff tantrum is haunting the Indian market players, especially for the sectors which have exposure to the country’s exports. But still, there are some stocks which can yield good returns in the next 3-4 months.
TVS MOTOR | CMP: 2990
The stock has indicated a decent pick up from the important 50EMA at the 2800 level, improving the bias and picked up significantly with indication of a breakout above the previous peak zone 2960 level, strengthening the trend and anticipating further rise in the coming days. The RSI has gained strength and can carry on with the positive move further ahead. With the chart technically looking attractive, we can expect higher targets 3270 and 3440 levels, keeping the stop loss at the 2800 level.
WAAREE ENERGIES | CMP: 3085
The stock has witnessed a gradual pick up maintaining the support near the important 50EMA zone at 2995 level and once a decisive breach above 3340 zone is confirmed, then shall trigger for further fresh upward move for next targets of 3600 and 3760 levels with the RSI currently well positioned maintaining the positive bias and has much upside potential to carry on with the positive move further ahead. With the chart technically looking good, we expect further gains, keeping the stop loss at the 2900 zone.
ITC HOTELS | CMP: 240
The stock has been on a rising trend, maintaining a strong uptrend with a series of higher bottom formations on the daily chart, sustaining above the important 50EMA zone at the 224 level, taking support and indicating a pullback to anticipate for further gains. Technically, the chart set-up is quite appealing, and currently, with the RSI well positioned correcting from the overbought zone has indicated a buy signal with much upside potential visible. From the current rate, keeping the stop loss of 224, one can expect further gains having targets of 264 and 287 levels in the coming days.
Which sector do you find on the cusp of a breakout for possible solid returns?
From a technical perspective, most of the agro-based stocks are performing well and are expected to carry on with the positive move further ahead. Also, select auto stocks are performing well with good fundamentals supporting the rationale. Among the sectors, there are mixed views among the individual stocks, so one can go for select stocks which have eroded quite significantly and with technical parameters improving and suggesting a positive signal accompanied by good fundamentals.
Nifty Defence index is on back foot now after a stellar run. What’s your view?
The defence stocks after the strong run-up have witnessed a decent erosion to the tune of 25 to 30% from the peak zone, and currently are trading with a weak bias. No doubt, the stocks have become attractive, but still, technically, a positive turnaround with a decent pullback is awaited to get much clarity and conviction.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
