Indian markets are breaking out of a month-long consolidation phase ,and Rajesh Bhosale, Equity Technical Analyst at Angel One, says the momentum shift that began on Friday is now gathering strength, with Nifty on course to retest its April swing high.
Speaking to ET Now on Monday, Bhosale said Nifty sustaining above key support levels has turned the short-term bias decisively positive. He expects the index to move toward 24,600 — the April swing high — in the near term, with the 23,750–23,800 zone acting as a dip-buying support along the way.
"Bias is positive. Continue to buy on dips. Our focus would be on stock-specific ideas where we expect outperformance to continue." — Rajesh Bhosale, Equity Technical Analyst, Angel One
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Trent — one of Monday's top Nifty gainers — is Bhosale's first high-conviction call. The stock had been range-bound for roughly a month, caught between its 50-day EMA and 200-day moving average. Monday's session changed that, with prices breaking above the 200 DMA and confirming a price range breakout simultaneously.
Stock pick 2: Phoenix Mills
The second pick is Phoenix Mills, where Bhosale points to a textbook double bottom formation on the 200 DMA — a pattern widely read as a strong reversal signal. Monday's session saw the double bottom breakout confirmed, which he says sets up the stock for strong near-term momentum.
Bhosale's broader read on the market is that the post-consolidation momentum is real but still early. His strategy for the session, and the near term, is to buy dips rather than chase moves, keep positions stock-specific, and use defined stop losses. With Asian markets strong and US equity futures pointing higher, the external backdrop is supportive for now.
