Indian equity markets witnessed a choppy trading session as investors remained cautious ahead of the upcoming monetary policy announcement. Benchmark indices fluctuated within a narrow range, reflecting uncertainty among market participants despite signs of resilience at lower levels.
Sharing his outlook on the market, market expert Ajit Nayak from HDFC Securities said the Nifty is currently trading near a crucial resistance zone around the 23,450 mark. He noted that after witnessing a gap-down opening and a sharp decline in the previous session, the index managed to reclaim the 23,100 level and has since been attempting to move higher.
According to Nayak, the gap-down resistance created in the previous session remains an important hurdle. He said, "The gap resistance is very crucial and it is absorbing all the sellers' bid orders. So, once it does that, then we can see Nifty heading towards 23,560 to 23,600 odd level."
However, he advised investors to remain watchful ahead of the policy announcement. While the broader daily chart structure remains mildly positive, Nayak does not expect an extended rally beyond the 23,700–23,750 zone. He remarked, "For one or two days we may see a rally climbing up to 23,750 to 23,800 and from there our downward journey will resume."
As a result, he believes the benchmark index is likely to remain range-bound in the near term, moving within a band of 23,200 to 23,650.
Federal Bank on Traders’ Radar
On the stock-specific front, Nayak highlighted Federal Bank as a promising trading opportunity. He said the stock is displaying positive chart patterns and could witness a strong move once it crosses a key resistance level.
Discussing the setup, he stated, "Once it crosses 301 level, then there is good upside move till 350, support being placed at 291." He added that traders can consider fresh long positions if the stock manages a decisive breakout above the ₹301 mark while maintaining support above ₹291.
Auto Sector Continues to Gain Momentum
Nayak also expressed optimism on the automobile sector, which has shown signs of strengthening in recent sessions. He pointed out that not only large automobile manufacturers but also mid-cap auto companies and ancillary players are witnessing improving technical structures.
Commenting on the sector, he said, "Auto sector is looking good. There are good midcap autos as well and auto ancillaries they are also looking good."
Among his preferred picks, Nayak identified Mahindra & Mahindra and Bajaj Auto as attractive opportunities. He also highlighted Jamna Auto from the small-cap space, citing improving momentum and sector-wide strength.
With the policy announcement around the corner and markets trading near key resistance levels, investors are likely to keep a close watch on both macro developments and sector-specific opportunities, particularly within banking and automobile stocks.
