Nifty Eyes 24,600 Retest: Two Stock Picks to Watch Now

The Indian equity markets are signaling a decisive shift after a month-long consolidation phase, with momentum gathering strength across major indices. According to technical analysis, the current market structure suggests a bullish trajectory as Nifty prepares to challenge its previous highs.

Nifty's Bullish Momentum and Key Support Levels

After a period of sideways movement, the Nifty is breaking out of its consolidation zone. Rajesh Bhosale, Equity Technical Analyst at Angel One, notes that the momentum shift observed recently is gaining significant traction. With the index sustaining levels above critical support, the short-term market bias has turned decisively positive.

Bhosale anticipates that Nifty is now on a course to retest its April swing high of 24,600. For investors looking to participate in this rally, the 23,750–23,800 zone is identified as a vital support area. The recommended strategy for the current market environment is to "buy on dips" rather than chasing sudden price spikes, ensuring a disciplined entry into the market.

High-Conviction Pick: Trent Ltd

One of the standout performers in the current breakout is Trent Ltd. The stock had recently been stuck in a range-bound pattern for approximately one month, fluctuating between its 50-day Exponential Moving Average (EMA) and its 200-day Moving Average (DMA).

However, recent price action has changed the narrative. Trent successfully broke above its 200-day DMA, confirming a price range breakout. This technical setup suggests a new leg of growth for the retail giant.

Momentum Play: Phoenix Mills

The second high-conviction recommendation is Phoenix Mills, which is exhibiting a classic technical reversal pattern. The stock has formed a "textbook double bottom" on its 200-day DMA, a formation that technical analysts widely view as a strong signal for a trend reversal.

With the double bottom breakout now confirmed, Phoenix Mills is positioned for strong near-term momentum. Analysts suggest that the stock is well-primed to capitalize on the broader market recovery.

Broader Market Outlook and External Factors

While the post-consolidation momentum appears real, experts caution that the rally is still in its early stages. Investors are advised to remain stock-specific and maintain strict discipline by using defined stop losses.

The external environment also provides a supportive backdrop for Indian equities. Strong performance in Asian markets and upward movement in US equity futures suggest that global sentiment is currently aligned with the domestic bullishness, providing further tailwinds for the Nifty's ascent toward the 24,600 mark.

Key Takeaways