Chartist Talk: Nifty’s downside cushioned; 25,300 in sight amid positive cycle, says Ashish Kyal

Ashish Kyal is the Founder and CEO of Waves Strategy Advisors

• Gann level of 24,728 now becomes important support zone for Nifty 50
• Price behaviour suggests that downside may get protected
• Bet on Bharat Electronics, and Finolex Cables in current market correction

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According to Ashish Kyal, the Founder and CEO of Waves Strategy Advisors, the Gann level of 24,728 now becomes an important support zone.

The price behaviour suggests that the downside may get protected, especially as the index is also entering a positive time cycle zone. From here, a sustained move above 25,050 will indicate the start of gap-filling activity, which can lead the index towards 25,300 on the upside, he said in an interview to Moneycontrol.

He bets on Bharat Electronics, and Finolex Cables in the current market correction following the US–Israeli strike on Iran. "Bharat Electronics outperformance highlights underlying bullish momentum in the stock, while Finolex Cables closed above the prior day’s high for three consecutive sessions backed by a notable surge in volumes, highlighting strong bullish momentum," he said.

Do you expect the Nifty 50 to decisively break below the 24,600 zone, which is close to the Budget day’s low, even though it is difficult to accurately predict market tops or bottoms?

Nifty witnessed a sharp gap-down opening on Monday following the US–Israeli strike on Iran. The index made a low near 24,600 but managed an intraday recovery to close at 24,865.

This recovery is significant as the index has closed back above the Gann level of 24,728, which now becomes an important support zone. Notably, 24,600 level is also close to the Budget Day low of February 1 at 24,571. The price behaviour suggests that the downside may get protected, especially as the index is also entering a positive time cycle zone. From here, a sustained move above 25,050 will indicate the start of gap-filling activity, which can lead the index towards 25,300 on the upside.

What are you advising your clients in the current situation, and what would be your preferred trading strategy at this juncture?

In the current environment, we advise clients to remain cautious and avoid aggressive participation in derivatives, given the event-driven volatility. However, positional exposure can be considered through Index ETFs, and stock-specific opportunities may continue to play out selectively.

From a trading perspective:

• It is preferable not to carry overnight unhedged positions.

• If overnight exposure is unavoidable, positions should be adequately hedged to manage gap risk.

Our preferred strategy is to use dips as buying opportunities, as long as 24,600 remains intact.

Holding above this level keeps the upside potential open towards:

• 25,050 initially

• followed by 25,300 in the near term.

Which two stocks would you consider buying in the current market correction, particularly those whose charts remain strong despite the broader bearish pressure?

Bharat Electronics

The stock has shown notable relative strength, closing 2% higher even as major indices ended sharply in the red. This outperformance highlights underlying bullish momentum in the stock.

On the daily chart, Bollinger Bands have started to expand, signaling a rise in volatility. The stock is now approaching its prior swing high at Rs 461.65, which also marks its all-time high. A decisive breakout above it could trigger fresh buying interest, potentially driving prices toward the Rs 485–500 zone. On the downside, Rs 430 remains a crucial support level to watch.

Finolex Cables

The stock continues to outperform the broader indices, closing above the prior day’s high for three consecutive sessions. The move is backed up by a notable surge in volumes, highlighting strong bullish momentum. One can consider using dips as buying opportunities, with upside targets placed around Rs 980–1,000, as long as Rs 870 levels remains intact on the downside.

Gold is generally considered a safe-haven asset. Do you expect prices to revisit the record high seen on January 29?

During periods of heightened uncertainty, investors and traders often shift towards safe-haven assets like Gold, Silver, and other precious metals. The recent US–Iran tensions have once again triggered renewed strength in Gold prices.

If the situation continues to escalate, Gold could retest its January 29 high. Currently, the metal is trading roughly 7% below its all-time high a gap that can be quickly bridged given the sharp rise in volatility as long as Rs 1,59,800 per 10 gram level remains protected on the downside. Also depreciation in INR is helping Gold prices in India.

Do the charts suggest that it is prudent to remain bullish on Tube Investments of India, which gained 3 percent and continues to maintain a higher high–higher low formation?

Despite opening with a sharp 6% gap-down in the previous session, Tube Investments staged a strong recovery to close 3% higher. This marked an impressive 9% intraday swing, highlighting strong underlying bullish momentum. The stock has shown a breakout from a Rounding Bottom pattern, indicating a potential reversal in the daily trend.

The stock has also been consistently closing above the upper Bollinger Bands for the past three sessions, accompanied by a formation of higher highs and higher lows which is a clear sign of bullish momentum. As long as Rs 2,530 level holds on the downside, the uptrend remains intact, with potential upside targets towards Rs 3,080 and higher.

Do you believe Muthoot Finance has bottomed out, considering today’s rally despite overall market weakness?

The stock has successfully filled the gap formed in November 2025 and is now consolidating near the gap support zone within the Rs 3,340–3,540 range.

A decisive breakout above Rs 3,540 would be the first indication of a potential short-term recovery.

However, it would be too soon to confirm a short-term bottom unless the stock sustains and finds acceptance above Rs 3,540 levels. Until then, the broader structure suggests continued range-bound movement.

Do you see the Bank Nifty breaking below its 100-day EMA in the upcoming session, or is it likely to continue outperforming the Nifty 50?

Bank Nifty took support near its 100-day EMA at 59,148 and bounced, keeping the broader trend positive unless it closes below this level on a daily basis.

Compared to Nifty 50, Bank Nifty remains relatively stronger. Nifty’s recent low (24,603) is just 0.18% away from its February 1 low, whereas Bank Nifty is still about 2.28% (1,400 points) above its February low indicating better relative positioning and upside potential.

A break above 60,180 can result into an attempt to fill the gap which was formed in Monday’s session. Acceptance above 60,400 levels will be a first sign of potential short covering.