Indian Stock Market: Key Picks and Insights – Nifty Surges on IT Stocks, Buy-On-Dips Strategy Recommended

The Nifty index has broken out of its consolidation phase on the daily chart, thanks to a strong performance by major IT companies. This positive trend is expected to continue, with indicators showing ongoing strength. Support is at 24,400, where there’s significant activity by put writers. As long as Nifty stays above 24,400, a buy-on-dips strategy is advisable. The current rally could extend to 24,800.

Bank Nifty Insights

The Bank Nifty was volatile throughout the day but ended flat. It seems to have found support at the 21-day EMA on the daily chart. A buy-on-dips strategy is recommended until it drops below 21,700. Resistance is at 52,800, and if the index breaks above this level, it could rise to 54,000.

Stocks to Buy

Indian Bank

• Buy at: ₹559
• Target Price: ₹600
• Stop Loss: ₹542

Indian Bank has broken out of its consolidation on the daily chart and looks strong for the short term. The stock is holding above a key moving average, and the RSI shows a bullish crossover. The stock could reach 600, with support at 542.

Birlasoft

• Buy at: ₹731
• Target Price: ₹800
• Stop Loss: ₹700

Birlasoft has also broken out of a downward consolidation on the daily chart. The stock is above a critical moving average, and the RSI indicates a bullish crossover. The stock could rise to 800, with support at 700.

IRFC

• Buy at: ₹216.50
• Target Price: ₹230
• Stop Loss: ₹208

IRFC has moved up after breaking out of its consolidation on the daily chart. The stock remains above a key moving average, and the RSI shows a bullish crossover. The stock could reach 230, with support at 208.