Speaking to ET Now, Sharma noted that despite recent volatility, the market remains underpinned by strength in banking and financial stocks, with FIIs showing reduced short positions in these sectors.
“Technically, Nifty remains in a bull grip as long as we don’t close below 25,000. Once 25,200 is crossed, we can expect a move towards 25,500 in the short term,” he said.
He advised traders to buy on dips with a stop loss at 24,950, suggesting that stock-specific action will drive the next phase of gains.
Top stock picks: BSE and IndusInd Bank
Sharma highlighted Bombay Stock Exchange (BSE) and IndusInd Bank as his high-conviction picks in the current market setup.
“BSE has come out of a three-to-four-month phase of underperformance and is showing strong reversal signals,” he said.He expects the BSE stock to climb towards ₹2,500–2,550, recommending accumulation on dips with a stop loss near ₹2,100.On IndusInd Bank, Sharma said the stock offers an attractive risk-reward setup after a steady recovery.
“IndusInd Bank didn’t participate in the recent rally, but volume and price action have improved. Buying around ₹750 with a stop loss at ₹720 could yield targets of ₹840–850,” he added.
Sector view: Pharma and metals
In sectoral terms, pharma and metals are back in focus, with Divi’s Laboratories emerging as a strong investment pick.
“Divi’s Labs has reversed from oversold levels near ₹5,700 and looks set for a move towards ₹6,600–7,000. It’s a solid investment bet — buy on dips,” Sharma advised.
While positive on the metals index, he cautioned that the momentum could be near its peak.
“Metals are more of a trading opportunity right now. Tata Steel is a good pick for short-term traders — buy on dips with a stop loss at ₹170 for a target of ₹185,” he said.
Market outlook
With earnings season kicking off and banking stocks leading the charge, Sharma believes the broader market structure remains positive — supported by liquidity, institutional interest, and improving domestic fundamentals.
“BFSI and select largecaps are driving the bounce post-RBI policy. As long as key supports hold, the bull trend stays intact,” he concluded.
Key technical levels:
Nifty support: 25,000
Nifty resistance: 25,200 → 25,500
Trading strategy: Buy on dips, focus on stock-specific moves
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