Technical analyst Nilesh Jain pointed out that the Bank Nifty, which has lagged the Nifty throughout the August series, has now slipped into an oversold zone. “Today, we are seeing some bit of outperformance in Bank Nifty after a long time. This is a positive sign for the markets. A lot of short positions have been rolled over into the September series, which makes Bank Nifty a candidate for short-covering,” Jain said in a conversation with ET Now.
According to him, if the index manages to hold 53,800 on a closing basis, it could spark a recovery towards 54,500–55,000 levels in the near term. A further pullback towards 55,500 is also on the table if momentum sustains.
On the Nifty 50 front, however, Jain struck a cautious note. “Structurally, the Nifty has weakened and is forming a lower-high formation. The key support lies at 24,350, which should act as a stop-loss for any contra long positions. From there, we may see a bounce toward 24,600–24,700, but it would only qualify as a pullback, not a trend reversal,” he explained, adding that the broader structure still looks sideways to weak.
When asked about short-term trading strategies, Jain emphasized a stock-specific approach. He recommended Finolex Industries (Fin Pipe) from the cash segment, noting that the stock recently broke out of a falling channel and has successfully retested the breakout zone. “It looks poised to head toward ₹220–225 levels with a stop-loss at ₹207,” he said.
Another pick on his radar is Cummins India, which has been in a steady uptrend, consistently forming higher highs and higher lows. “The stock remains strong on charts and could move toward ₹4,500 with a stop-loss placed below ₹3,820,” Jain suggested.
as a Reliable and Trusted News SourceWith Bank Nifty showing signs of life and select stocks offering opportunities, traders are eyeing a short-term bounce. However, experts caution that sustained strength will only return if critical supports hold firm.