Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors, suggests that Nifty needs to break above 24,640 levels to trap late short sellers in the market for short covering rally to 24,800 levels.
However, any breach below 24,430 can continue the downside drift to 24,200, he said in an interview to Moneycontrol.
Among stocks, he is bullish on Indian Bank, and PB Fintech. "Indian Bank is consistently outperforming its sector and its peers since the past one week, while PB Fintech managed to close above prior day’s high which is a bullish sign," he said.
Do you believe the Nifty 50 could snap its six-week losing streak with a healthy rally this week, despite the prevailing bearish sentiment?
Nifty has been drifting downside since 6 weeks now. Prices managed to form a bullish candle with the start of the week which shows that downside pressure is wanning out. Also, 24,430 – 24,470 is important price action zone. Prices gave break below that in last week but managed to move back above it yesterday. This can keep overall tone in a range for now.
On upside, prices needs to break above 24,640 levels to trap late short sellers in the market for short covering to 24,800 levels. However, any breach below 24,430 can continue the downside drift to 24,200. In a nutshell, prices are at crucial juncture. Decisive break above 24,640 or below 24,430 will set the tone for this week. Short term indicators are showing positive divergence suggesting lack of downside momentum but positive price action awaited.
Which two stocks are on your radar for this week, even in the current falling market environment?
Indian Bank is consistently outperforming its sector and its peers since the past one week. In the previous session, stock showed a good rise and also gave a breakout of the consolidated range of Rs 605-660 levels with rise in volumes which is a positive sign. Along with this, MACD has already shown a bullish crossover which is acting as a double confirmation. For now, one can use dips towards Rs 655-660 as a buying opportunity with the targets of Rs 690 followed by 730 levels. On the downside, Rs 630 is the nearest support levels.
In the previous session, PB Fintech was up by more than 5% and also managed to give close above prior day’s high which is a bullish sign. For now, as the rise was steep in nature one should use dips towards Rs 1,830-1,840 levels as a buying opportunity which can bring out the targets of Rs 1,935 followed by Rs 1,980 levels. On the downside, Rs 1,725 levels is the nearest support.
Are you placing a big bet on Ather Energy?
Ather Energy has shown sharp rise on upside since August 4. Low on August 4 was at Rs 349 and from there prices have rallied to the high of Rs 430 levels, i.e. a rally of more than 20% in just a few trading days. Buying at current levels is not giving good risk reward and so any dips from here to Rs 410- 412 will provide opportunity to buy for a move to Rs 450 levels or higher. Immediate support for the stock is at Rs 397 on downside.
Based on higher timeframe charts, do you anticipate a sharp downside in the Bank Nifty in the coming weeks?
Bank Nifty after breakdown in last week showed recovery on 1st day of the current week. Prices moved up on upside supported by PSU banking stocks like SBI. This index has crucial support near 54,888 which is last week’s low. On upside, break above 55,750 will set the positive tone for this index for a move to 56,400 or higher levels. Downside risk is reducing but we need to start seeing positive price action above prior day’s high soon for betting on upside.
Are you a buyer in Kalyan Jewellers India and BSE on dips?
Kalyan Jewellers showed sharp decline on downside of nearly 8% post the quarterly results. This fall has been sharp that has retraced back past 30 days of price movement. It is not a healthy sign. Such big candle can result into short term temporary pullbacks. But that should be used to sell. Avoid buying this stock unless we see base formation or accumulation. Immediate support for the stock is near Rs 490 with Rs 580 as hurdle.
BSE is retracing a part of the rise we have seen earlier this year. The fall is overlapping and suggests temporary down move with overall medium to long term up move still intact. Dips on BSE can be used as buying opportunity with support near Rs 2,200 levels. On upside, break above Rs 2,510 will resume the positive trend in this stock to Rs 2,800 or higher.
Do you expect the Nifty IT index to consolidate at current levels, or is a further decline likely from here?
Nifty IT index has declined by nearly 14% since June 2025. The index is in oversold territory so short term pullback cannot be ruled out. There is short term positive divergence on short term time frame showing loss of downside momentum but price action needs to confirm.
The index is trading near 34,400 levels currently and break above 35,200 will indicate a reversal. However, any acceptance below 34,100 will keep the index under pressure and will open targets for 33,400 levels. In a nutshell, downside risk looks limited for this index but positive price action still awaited!
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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