Market expert Rajesh Bhosale from Angel One believes the current environment calls for restraint, especially for short-term traders. “For the near-term, our view remains cautious. If we see, we have already seen a terrible month for the March month and Nifty is down more than 10% and seeing the placement of India VIX, it is up more than 16% today. So, in the near term we remain cautious. Until there is any positive outcome from the warfront, in the near term this cautiousness is likely to extend. So, in the near term 22,200 will be the support and on the higher side any bounce towards 22,800 to 23,000 is likely to act as an immediate resistance.”
The broader markets have faced even sharper cuts, with midcap and smallcap indices witnessing steep intraday declines of 3–4%. This has raised concerns among investors about the sustainability of valuations and the risk of further downside if volatility persists.
Bhosale notes that despite the sharp correction, there are no clear signs of an immediate turnaround. “So, until there is a clear reversal, one should wait. Definitely, the indicators are in a deep oversold zone. If we see RSI, it is around the pre-COVID level. So, for the near term, short-term view remains cautious, but from a long-term perspective, one can look to buy in a staggered manner. So, short-term we remain cautious, but on a longer time frame indicators are hovering around the long-term support level. So, from a long-term perspective, one should add quality stocks in a staggered manner.”
Sectorally, the IT space has shown resilience amid the broader sell-off, emerging as a pocket of relative strength. Highlighting a specific opportunity, Bhosale points to Tech Mahindra as a stock to watch. “See, IT has shown relative strength in the last couple of weeks and today as well there is a strength. One particular stock that we are liking is Tech Mahindra. I mean, it is trading around its long-term support levels. Last week there was a bullish reversal and today it is crossing its 20 EMA. So, Tech Mahindra is one of the top performers for today and we expect this performance can extend. So, Tech Mahindra one should buy with the stop loss of around 1360, we expect a move towards the 1495 levels.”
On the flip side, weakness persists in select industrial names. “One can have a bearish view as well overall trend for the market is down, Bharat Forge is looking bearish. If we see, we are seeing a fresh lower top lower bottom structure in this stock. The stock is also slipping below its 50 EMA, bearish cup and handle formation is there. So, Bharat Forge a weak sentiment is there and expecting a downside. So, with a stop loss of around 1700 we are expecting downside towards the levels of around 1520.”
As markets navigate through uncertainty driven by geopolitical tensions and rising volatility, experts advise a balanced approach—staying cautious in the short term while gradually building positions in fundamentally strong stocks for the long haul.