According to The Economic Times, Rajesh Palviya, Head of Technical Research at Axis Securities, reports that Nifty's technical setup remains fragile. The index recently filled the bullish gap created on April 13 and has once again failed to sustain above its 50-day moving average. For traders watching levels, he flags 24,200 as the key supply zone this expiry. Major call writing activity is concentrated between 24,000 and 24,500, which means any pullback rally is likely to face stiff resistance in that band. On the downside, put writers have shifted their positions to 23,500, making that the key support level to watch for this expiry cycle.
As reported by The Economic Times, Palviya issued the sharpest message on the IT sector: stay out. Nifty IT has broken below the critical 30,000 support level, a zone that had held through multiple earlier corrections. With that floor gone, Palviya sees the index sliding further toward 27,800 as the next meaningful support. He noted that none of the largecap IT stocks is holding the ground, with most having broken key support levels and forming lower top, lower bottom patterns, a classic sign of a sustained downtrend. The weakness has spread to midcap IT stocks as well, with Persistent Systems and Coforge, which had seen buying interest in recent weeks, also starting to crack.
According to The Economic Times, while Nifty stumbles, Palviya says three sectors are showing genuine strength: power, FMCG, and pharma. Sustained buying has emerged in these spaces over the past few trading sessions. For investors looking for concrete ideas, he offered two specific picks. AU Small Finance Bank is his top banking call, with the stock in its third consecutive week of making higher highs and higher lows, showing long buildup visible in the weekly options data and having given a clean breakout above its previous swing high.
As reported by The Economic Times, Bank Nifty is a brighter spot despite broader volatility. Despite the broader volatility, it has held the 56,000 level with relative composure. Palviya says a sustained defence of 56,800 could trigger fresh buying, and a move above 56,300–56,400 may spark short-covering action. This performance contrasts with the overall market weakness and provides relative stability in the banking sector.
According to The Economic Times, Palviya's metal sector pick is SAIL, which on the monthly chart is breaking out of a rounding bottom formation — a significant long-term technical signal. On the weekly chart, it continues to trade in an upward-sloping channel. His strategy for SAIL involves buying and accumulating with a target of ₹188–192 and a stop loss at ₹173. For AU Small Finance Bank, the recommended strategy is buying and accumulating with a target of ₹1,100 and a stop loss at ₹1,045.
