Nifty Looks Ready for a Rebound: Analysts Predict Pullback to 25,500 – Here Are the Stocks to Watch

Analysts say the Nifty index is currently oversold, based on technical charts and the weekly put-call ratio. This signals a strong chance of a bounce back toward 25,500 this week. Stocks like ICICI Bank, L&T, SBI, HUL, Hero MotoCorp, BHEL, Asian Paints, SAIL, Cipla, Bajaj Finance, Maruti, Ashok Leyland, and Trent are looking good on the charts and could be winners in this pullback.

Jatin Gedia, Technical Research Analyst at Sharekhan, explains that after a 1,600-point or 6% drop, Nifty is likely near a short-term bottom at 24,694. Indicators suggest that the market is oversold, with a potential rise toward 25,360–25,535 this week. He recommends taking long positions with a target of 25,234–25,360 and a stop loss at 24,850. He also suggests using the dip to buy large-cap stocks, especially in pharma, IT, auto, metals, and realty sectors. The PSU Bank Index could surprise on the upside.

Arpan Shah, Senior Research Analyst at Monarch Networth Capital, says that after losing its all-time high of 26,277, Nifty neared its September low of 24,753. With oversold positions, traders can expect a bounce to 25,250–25,500 and Bank Nifty may rise to 52,200–52,800 soon. He advises looking at IT stocks like Infosys and HCL Tech, and metals like Hindustan Copper, SAIL, and National Aluminium. He also recommends ICICI Bank, Cipla, Syngene, and smaller names like Godawari Power, HFCL, FIEM Industries, and Indegene.

Sacchitanand Uttekar, VP-Technical & Derivatives at Tradebulls Securities, notes that over the last 11 months, Nifty has held above its 5-month EMA, showing a bullish trend. After stabilizing at 24,760, a close above 25,140 could push the index to 25,740, keeping the overall bullish outlook towards 27,255 intact. He recommends cautious optimism, waiting for price confirmation before jumping into bullish positions. Key stocks to consider include Kotak Bank, SBI, HAL, Concor, BHEL, Bajaj Finance, Maruti, Ashok Leyland, ABFRL, and Trent, which show strong potential for long-term gains.

Analysts suggest the ongoing dip offers good buying opportunities, especially with earnings season around the corner.