The rally has the right ingredients
From its swing low of 22,182, the Nifty has climbed nearly 11%. But what makes Rajani more confident about its sustainability is what has happened beneath the surface. The Nifty Microcap 250 Index has surged over 20% in the same period, and the smallcap index is up more than 17%. Broader markets are clearly leading, not lagging — a sign of genuine participation rather than a narrow, index-driven move.
“This is a broad-based rally, very good sign, and it looks like it is here to stay,” he said.
Key levels: Resistance now, target next
The immediate resistance zone for the Nifty sits between 24,550 and 24,600 — a band defined by the previous swing low on the charts. Rajani acknowledges that after a steep rise, some profit-booking or consolidation is possible, particularly as the results season adds stock-specific uncertainty.
That said, his base case remains bullish. The next meaningful target is 24,800 to 24,850, where the 200-day exponential moving average is placed — a level that will carry significant technical weight when the index approaches it.
For traders holding long positions, he recommends keeping a stop loss near 24,250 — the low from the previous session — and trailing it upward as the market moves higher.
Stock Pick 1: JSW Steel, fresh breakout in a strong sector
The metals sector is trading at 52-week highs, and JSW Steel has just delivered a fresh chart breakout. With momentum building across steel names over the past few sessions, Rajani sees positional upside from current levels.
Entry: around Rs 1,289 | Stop loss: Rs 1,270 | Target: Rs 1,325
Stock Pick 2: Jubilant FoodWorks, Classic reversal pattern
The FMCG and consumption sector had been deeply oversold. It is now showing early signs of a trend reversal, and Jubilant FoodWorks is his preferred vehicle to play it. The stock is forming an inverted head-and-shoulders pattern on the daily chart — one of the more reliable reversal signals in technical analysis.
Entry: around Rs 466 | Stop loss: Rs 458 | Target: Rs 485
Stock Pick 3: Marico , the quiet outperformer
While much of the market sold off sharply through the correction, Marico barely flinched. That kind of relative strength in a weak market tends to translate into meaningful outperformance when the tide turns. Rajani calls it one of the most resilient stocks in the staples space right now.
Support: Rs 730 | Target: Rs 820 (previous swing high)
On Nestle, he is more cautious — the stock has risen steeply over the past ten sessions and is now approaching strong resistance. The outcome depends entirely on today’s earnings print.
For traders, the message is straightforward: stay long, trail your stops, and let the market lead the way.