Nifty Eyes 24,600 Retest: Two High-Conviction Stock Picks to Watch

Indian equity markets are finally breaking out of a month-long consolidation phase, signaling a potential shift in momentum. With the Nifty sustaining crucial support levels, technical indicators suggest a decisive move toward previous highs, creating fresh opportunities for strategic investors.

Nifty Outlook: Aiming for the April Swing High

According to Rajesh Bhosale, Equity Technical Analyst at Angel One, the momentum shift that began last Friday is gaining significant strength. The Nifty index is now on a clear trajectory to retest its April swing high of 24,600.

For traders looking to enter the market, the immediate technical setup suggests a "buy on dips" strategy. Bhosale identifies the 23,750–23,800 zone as a critical support area where investors can look for dip-buying opportunities. The current short-term bias has turned decisively positive, supported by a strong performance in Asian markets and bullish cues from US equity futures.

High-Conviction Pick 1: Trent Ltd

As one of the top Nifty gainers on Monday, Trent Ltd has emerged as a high-conviction pick following a significant technical breakout. For approximately a month, the stock had been trapped in a range-bound movement, oscillating between its 50-day Exponential Moving Average (EMA) and its 200-day Moving Average (DMA).

The recent price action has changed this narrative. Trent has successfully broken above its 200-day DMA, confirming a price range breakout. This technical convergence suggests that the stock is ready for a fresh leg of upward movement.

High-Conviction Pick 2: Phoenix Mills

The second recommendation focuses on Phoenix Mills, which is exhibiting a "textbook" technical reversal pattern. The stock has formed a double bottom formation on its 200-day DMA—a pattern widely recognized by technical analysts as a strong signal of a trend reversal.

With the double bottom breakout confirmed during Monday's session, Phoenix Mills is positioned for strong near-term momentum. This setup provides a structured entry point for investors looking to capitalize on momentum-driven trades.

Strategic Approach for the Current Market

While the post-consolidation momentum appears real, experts caution that the rally is still in its early stages. Rather than chasing rapid price movements, the recommended strategy is to remain disciplined by focusing on stock-specific ideas and maintaining defined stop losses. A cautious but opportunistic approach—buying on dips rather than at peak levels—remains the most prudent way to navigate the current volatility.

Key Takeaways