After falling down to 23,555.60, Nifty recovered well from its morning lows and, critically, is holding above its 20-day exponential moving average, a short-term trend indicator he watches closely. “As long as this short-term moving average, the 20 EMA, is protected around 23,500, we will remain positive,” he says in an interview to ET NOW.
The range is now clearly defined. On the downside, 23,500 is the crucial support. On the upside, the 24,000-24,100 zone, which represents a 50% retracement of the recent fall, is the resistance to watch. Last week’s high sits right in that band.
Bhosale expects consolidation to persist until there is greater clarity on the geopolitical situation. But he is not telling investors to sit on their hands. “Individual stocks are doing well and one can focus over there,” he says.
Sona BLW Precision Forgings: Buy at Current Levels, Target ₹590
Sona BLW Precision Forgings is Bhosale’s first pick, and the technical setup is already in motion. The stock broke out strongly above the ₹550 level last week, and today’s session is seeing follow-through buying, confirming the move. A bullish crossover on the moving averages is in place, and volumes are supportive.
Bhosale recommends buying Sona Com now with a stop loss at ₹545. His near-term target is ₹590.MCX : All-Time High Breakout, Target ₹2,900
Multi Commodity Exchange is Bhosale’s second pick, and arguably his more emphatic call. The stock has been outperforming despite broader market weakness and is trading near its all-time high.
The key technical development: MCX had been facing stubborn resistance around the ₹2,700 level for the past couple of months. That resistance has been taken out today. “We expect a strong move,” Bhosale says.
His recommendation is to buy MCX with a stop loss at ₹2,626, targeting ₹2,900 in the near term.