Nifty Shows Strong Support Near 24,700; Buy on Dips Advised

Nifty has strong support near 24,700 and analysts recommend buying on dips. A sustained decline below 24,800 may drag the index down to 24,600. Strong sectors to buy on dips include Bank Nifty, PSU Banking, Automobile, IT, Media, Pharma, and Consumer Durables. Stocks to buy on dips include ICICI Bank, Canara Bank, Bajaj Auto, M&M, Mphasis, Intellect Design Arena, Zee Entertainment, Sun Pharma, and Tata Consumer Products.

Title: Nifty Hovers Near 24,700; Analysts Advise Buying on Dips

The Nifty index is expected to remain volatile, with strong support near 24,700. Analysts suggest a buy-on-dips strategy, focusing on banking, auto, IT, pharma, and consumer stocks, anticipating market buoyancy due to positive cues [1].

Nifty may find support around 24,700, while a breakout above 25,150 could lead to a move towards 25,300-25,500. Conversely, a sustained decline below 24,800 may drag the index down to 24,600. Analysts favor a buy-on-dips approach, with a focus on banking, auto, IT, pharma, and consumer stocks [1].

According to NAGARAJ SHETTI, Senior Technical Research Analyst at HDFC Securities, the Nifty index witnessed selling pressure from the highs on Friday, closing lower. A reasonably negative candle was formed on the daily chart on Friday near the hurdle of the downtrend line, indicating profit booking. The overall near-term uptrend status remains intact, and the present weakness could be a buy-on-dips opportunity down to the support [1].

MEHUL KOTHARI, DVP - Technical Research at Anand Rathi Shares & Stock Brokers, suggests that Nifty got stuck near the 25,150 mark, which coincides with the 61.8% Fibonacci retracement of the entire fall from 25,600 to 24,300. Unless 25,200-25,300 is taken out, further volatility is likely. A break below 24,800 could drag Nifty towards 24,600, filling the gap area created on Monday [1].

SACCHITANAND UTTEKAR, VP - Research (Technical & Derivatives) at TradeBulls Securities, notes that Nifty ended the week on a volatile note, erasing interim gains on the final day but managing to hold firm above the 24,900 gap support. The index also respected its 50-day EMA, reinforcing the broader uptrend structure, keeping the door open for a move towards 25,400-25,500. A buy-on-dips approach remains preferable, with aggressive longs recommended above 25,160 [1].

Analysts recommend buying on dips in sectors such as Bank Nifty, PSU Banking, Automobile, IT, Media, Pharma, and Consumer Durables. Stocks to consider include ICICI Bank, Canara Bank, Bajaj Auto, M&M, Mphasis, Intellect Design Arena, Zee Entertainment, Sun Pharma, and Tata Consumer Products [1].

References:
[1] https://m.economictimes.com/markets/stocks/news/nifty-has-strong-support-near-24700-time-for-buy-on-dips-analysts/amp_articleshow/123491188.cms