Speaking to ET Now, Shetti said the index has been witnessing high volatility near the 25,500–25,600 zone but consistent buying from lower levels suggests a potential bottom reversal in the making.
Nifty outlook: Support holds, upside levels in focus
Shetti noted that the Nifty has repeatedly found support near 25,500, indicating strong buying interest. “The market has been consolidating around these levels, and the last two sessions confirm that 25,600 is acting as a solid base,” he said.
On the upside, 26,000 remains the immediate hurdle. “Some consolidation near 26,000 is likely, but once that is crossed, the index could move towards 26,200–26,300 in the near term,” Shetti added, while advising caution amid ongoing volatility.
Sector rotation at play; Metals and oil refining shine
According to Shetti, sector rotation is clearly visible, with renewed strength emerging in metals and oil refining stocks following a phase of correction.
He highlighted MRPL as a preferred pick from the oil refining space. “After a prolonged decline, MRPL has seen a strong rebound and is showing a decisive upside breakout. At current levels around ₹152, investors can consider buying with a target of ₹162 and a stop loss at ₹147,” he said.
From the metals segment, Shetti remains bullish on Steel Authority of India. He pointed out that the stock has formed a bullish flag pattern after a consolidation phase. “SAIL looks technically strong. Buying near ₹152 could offer upside towards ₹160, with a stop loss at ₹148,” he advised.
Tata Steel leads metal rally
On the broader metal pack, Shetti said momentum remains firmly positive. Stocks like Tata Steel and SAIL are leading the rally. “The recent up move in Tata Steel marks a clear breakout from its consolidation zone. From here, the stock could move towards ₹202–203 in the near term,” he said.
Insurance stocks: Wait-and-watch approach
Commenting on ICICI Lombard General Insurance, Shetti said the stock remains in a downtrend with no clear reversal signals yet. “The ₹1,800 level could act as a strong support. Investors should wait for base formation before taking fresh positions,” he cautioned.
Key takeaway
While the broader sentiment remains cautious, technical indicators suggest that the Nifty may be forming a base near current levels. Select opportunities are emerging in metals and oil refining stocks, but Shetti advises investors to remain disciplined, focus on stock-specific setups, and use strict stop losses amid continued market volatility.