Chartist Talk: Sustained close above 25,750 post gap-up could revive medium- to long-term bullish trend in Nifty; Ashish Kyal picks 5 stocks

Ashish Kyal is the CMT, Founder and CEO, Waves Strategy Advisors

• Picks Tech Mahindra,ICICI Bank,JK Tyre and Industries,Infosys,IndusInd Bank after deal
• Sustained close above 25,750 post gap-up could revive medium- to long-term bullish trend in Nifty
• Support for Nifty is seen near Gann level of 25,361

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"The market structure remains bullish, and today’s closing will play a decisive role in setting the tone ahead," said Ashish Kyal, CMT, Founder and CEO, Waves Strategy Advisors in an interview to Moneycontrol.

According to him, a strong gap-up followed by a sustained close above 25,750 can reignite bullish momentum in Nifty 50 from medium to long term perspective. Buying on dips offers a superior risk-reward, while avoiding aggressive trades into the gap and keeping leverage low is advised.

He advised buying Tech Mahindra, JK Tyre & Industries, ICICI Bank, Infosys, and IndusInd Bank as he expects broad-based outperformance across sectors post the India–US trade deal.

Is this the best time for Indian equities now that a major concern—the India–US trade deal—has been resolved? Do you expect a strong bull run for Indian markets from here?

The 25,750 level remains a key time-based support, and an hourly close above 25,750 is necessary for price stability and continuation.

Although prices corrected sharply on the budget day, the market displayed resilience by staging a relief rally and closing above the 25,000 mark. With short positions built up in the system, any panic covering could further accelerate the upside momentum.

Overall, the market structure remains bullish, and today’s closing will play a decisive role in setting the tone ahead. Historically, price spikes formed during event-driven sessions often define the subsequent trend, making today’s action particularly important.

In summary, a strong gap up followed by a sustained close above 25,750 can reignite bullish momentum from medium to long term perspective. Buying on dips offers a superior risk-reward, while avoiding aggressive trades into the gap and keeping leverage low is advised.

What is your trading strategy at this stage, and what key levels should investors watch on the upside and downside?

As mentioned above, the key upside level to watch remains the 25,850 zone, while on the downside, support is placed near the Gann level of 25,361, defining the broader trading range. A euphoric opening is possible due to the overnight event risk, but despite the initial volatility, prices are expected to settle within the 25,550–25,850 zone by today’s close.

Do you think this is the right time to pick IT stocks?

The Nifty IT index has been consolidating within a defined range since December 2025, with prices oscillating between 39,340 on the upside and strong support near 37,300. The index closed the previous session around 38,074, keeping it well within this consolidation zone. That said, there is a high probability that the IT index is in the process of forming a durable bottom, which could lead to a strong upside breakout.

From a structural perspective, the daily charts indicate a rounding bottom formation, suggesting a gradual shift from distribution to accumulation. If this pattern plays out as expected, the medium-term upside target for the Nifty IT index is projected near 44,500, making the sector an important space to track going forward.

Which five stocks would you recommend buying after the finalisation of the India–US trade deal, and why?

Post the India–US trade deal, we expect broad-based outperformance across sectors, with leadership emerging from fresh stock-specific setups.

In the IT space, Tech Mahindra is well placed, having formed a rounding bottom pattern and standing at the verge of a breakout, with an upside potential towards Rs 2,000.

JK Tyre & Industries has displayed strong relative resilience, consolidating sideways through the broader market correction. A decisive breakout post market stability can trigger an upside move towards Rs 600+, while Rs 495 remains the key downside support.

ICICI Bank is placed at a crucial price-action zone after underperforming its banking peers. A reversal from current levels can lead to a retest of Rs 1,440, while Rs 1,328 remains the key downside support.

Infosys has been consolidating within the Rs 1,600–1,700 range for an extended period. A breakout above Rs 1,700 can trigger an upside move towards Rs 1,850, while Rs 1,600 remains the key support.

IndusInd Bank has formed a classic rounding bottom consolidation, indicating improving structure. A decisive breakout can drive the stock towards Rs 1,100, while Rs 840 remains the key downside support.

Do you think the Bank Nifty has bottomed out, given the formation of a Tweezer Bottom–like pattern?

Bank Nifty is positioned near a critical 54-day cycle, indicating a potential bottoming formation and scope for an upside reversal. A strong gap-up opening can push the index above the lifetime high of 60,500, with momentum extending towards 62,500+ in the coming weeks, while 58,000 remains the key downside support.