Don't be bearish till Nifty breaks below 24,750, experts advise traders

Nifty Upward Journey

The benchmark indices rallied to seven-month highs on Thursday, buoyed by hopes of an early India-US trade agreement following US President Donald Trump’s comments during a meeting in Doha.

Trump stated that India is willing to offer a zero-tariff trade deal, which lifted investor sentiment back home.

Extending gains for the second straight session, the Sensex jumped 1,200.18 points or 1.48 percent to close at 82,530.74. The index had a sluggish start and moved in a range during the first half, but gained sharp momentum in the afternoon session led by buying in banking, auto, IT and oil & gas stocks. It touched an intraday high of 82,718.14, up 1,387.58 points or 1.7 percent.

The broader Nifty surged 395.20 points or 1.6 percent to end at 25,062.10, reclaiming the 25,000 mark for the first time since October 17, 2024.

With both indices posting strong gains, technical experts said traders should avoid a bearish stance until the Nifty decisively breaks below 24,750.

"The market structure remains strong, but for intraday traders, buying on dips and booking profits on rallies would be a better approach," said Shrikant Chouhan, Head of Equity Research, Kotak Securities.

He said key support levels to watch are 24,900 and 24,750 for the Nifty, while resistance is likely around 25,210–25,300. For the Sensex, 82,200 and 81,800 are important support zones, while resistance could be seen between 82,800 and 83,000. “A break below 24,750/81,800 could make the trend vulnerable,” he added.

Analysts also pointed out the formation of a bullish candle on the daily charts and continuation of the uptrend on intraday patterns, signalling room for further gains from current levels.

Ajit Mishra, SVP – Research, Religare Broking, said, “We continue to recommend a ‘buy on dips’ strategy, but traders should be more selective in stock picking, especially in segments that are already overbought.”

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