Nifty Targets 24,600 Retest as Momentum Shifts; Two Stocks to Watch

The Indian equity markets are signaling a decisive breakout from a month-long consolidation phase, marking a significant shift in momentum. As the index prepares for a potential retest of its April swing highs, technical indicators suggest a bullish bias for short-term traders.

Nifty Outlook: Eyeing the 24,600 Milestone

According to Rajesh Bhosale, Equity Technical Analyst at Angel One, the momentum shift that began last Friday is gaining significant strength. After sustaining above critical support levels, the short-term bias for the Nifty has turned decisively positive.

Bhosale anticipates that the index is on a trajectory to retest the 24,600 mark, which represents the April swing high. For investors looking to enter the market, the 23,750–23,800 zone is identified as a crucial dip-buying support area. The current market sentiment is further bolstered by strong performance in Asian markets and positive cues from US equity futures, providing a supportive external backdrop for domestic indices.

High-Conviction Pick: Trent Ltd

As part of a stock-specific strategy to capitalize on the market recovery, Trent emerged as a primary recommendation. The stock had previously been trapped in a range-bound movement for approximately one month, oscillating between its 50-day and 200-day Exponential Moving Averages (EMA).

However, recent price action has changed the narrative. Trent successfully broke above its 200-day Daily Moving Average (DMA), confirming a simultaneous price range breakout. This technical setup suggests a fresh leg of upward movement.

Momentum Play: Phoenix Mills

The second high-conviction pick is Phoenix Mills, which is exhibiting a classic technical reversal pattern. Bhosale noted a "textbook" double bottom formation on the 200-day DMA—a pattern that technical analysts widely recognize as a strong signal for a trend reversal.

With the double bottom breakout confirmed during the recent session, Phoenix Mills is positioned for strong near-term momentum. Investors are advised to approach this trade with defined risk parameters.

Strategic Approach for Investors

While the overall market trend appears positive, Bhosale emphasizes that we are still in the early stages of this post-consolidation momentum. The recommended strategy for navigating this environment is to avoid "chasing" every upward move. Instead, investors should focus on "buying the dips" and maintaining a stock-specific approach. Using strict stop-loss orders is essential to manage risk as the market tests new highs.

Key Takeaways