We are seeing a complete red across the screen; the market texture is quite volatile and trending downward. What is your view on the indices, both Nifty and Bank Nifty?
Manas Jaiswal: Nifty has been quite disappointing. Yesterday, it managed to reclaim the 10- and 30-day moving averages but failed to cross the key resistance level of 25,300. Since Nifty is now trading below the 10- and 20-day moving averages, one should remain cautious at current levels. That said, I don’t expect a significant downside from here, as there is strong support around the 24,900–24,950 zone. If you’re already holding long positions, you can continue to hold them, but keep a stop loss below 24,900. However, fresh long positions should only be considered if Nifty breaks out above 25,300.
On the other hand, I am bullish on Bank Nifty. It is currently in a consolidation zone, with immediate resistance around 57,400. Strong resistance is seen in the 56,250–56,400 range. On this correction, one can consider creating long positions, as the weekly and monthly charts suggest that a breakout above 57,400 could lead to a 1,000-point rally. Accumulate Bank Nifty on dips, but keep a stop loss below 56,250. For Nifty, it’s better to wait for a breakout above 25,300 before entering.
I also want to touch upon some stock-specific action we are witnessing. Let’s discuss the power coupling story as well—that’s an ET Now exclusive. IEX tanked nearly 10% after the news was confirmed. What’s your view?
Manas Jaiswal: If you’re referring to IEX, it has broken a key long-term support level of ₹150. At current levels, there is potential for further downside, possibly toward ₹110. If you’re holding long positions, use any bounce to exit the stock.
Coming to stock-specific ideas, there are two I recommend. First is Jindal Steel, which has given a fresh breakout on medium- to long-term charts. The stock had been facing resistance around ₹980–985, but now that it has broken above ₹985, one can create long positions. Keep a stop loss below ₹974, with a target of around ₹1,020.
The second is Eternal, which has a very strong chart structure. It recently broke out, consolidated for a while, and the rally has resumed. The stock has surpassed its previous high of ₹300 on long-term charts. You can go long in Eternal with a stop loss around ₹304 and a target of ₹325.
Besides Eternal and Jindal Steel, is there any other stock you’d recommend buying in the current market?
Manas Jaiswal: I’ve already mentioned Jindal Steel, as most metal counters are looking strong on the charts. Apart from Jindal Steel, if you’re looking to enter the metal space, Tata Steel is a good long-term pick. The stock is showing considerable strength and looks promising over the next 2–3 months. Even at current levels, you can accumulate Tata Steel with a stop loss below ₹150. I expect it to reach the ₹185–190 range within the next one or two months.
