Religare Broking Analyst Identifies Technical Breakouts as Nifty Faces Pressure After Sharp Global-Driven Correction

Indian equity markets are witnessing heightened volatility amid global uncertainties, rising crude oil prices and renewed geopolitical concerns. While the broader market sentiment remains cautious, analysts believe selective opportunities are emerging in stocks with strong technical setups.

Ajit Mishra, Senior Vice President – Research at Religare Broking, has recommended a buy strategy for Ather Energy and Sun Pharmaceutical Industries, while advising traders to adopt a sell strategy on ITC futures based on recent price action and technical indicators.

According to Mishra, investors should avoid broad-based buying during uncertain conditions and focus on stocks showing strength, breakout patterns and favourable risk-reward opportunities.

Indian Markets Witness Sharp Correction Amid Global Headwinds

The Indian stock market witnessed a major sell-off during Wednesday’s trading session, with benchmark indices registering their steepest decline in more than two months.

The Nifty 50 opened sharply lower and remained under pressure throughout the session due to widespread selling across sectors. The index closed at 23,882.05, declining around 2.12%.

The decline was broad-based, with sectors such as banking, financial services and FMCG witnessing significant pressure.

Mid-cap and small-cap stocks also experienced selling, reflecting increased risk aversion among investors.

The market weakness was largely triggered by renewed geopolitical concerns after uncertainty emerged over the future of peace efforts in West Asia.

Geopolitical Risks and Crude Oil Surge Impact Sentiment

The latest market correction was driven by concerns that rising tensions in West Asia could impact global economic stability.

Crude oil prices moved higher as investors assessed the possibility of supply disruptions. Higher oil prices remain a concern for India due to its dependence on imported energy.

A sustained increase in crude prices could influence:

• Inflation expectations

• Corporate profit margins

• Currency movement

• Interest rate outlook

Weak global markets, rising volatility levels and heavy selling in large-cap stocks further contributed to the market decline.

Technical Outlook: Nifty Faces Resistance, Supports Under Watch

According to Ajit Mishra, the short-term technical structure of the market has weakened significantly.

The Nifty has slipped below the important support zone of 24,000–24,150 and has fallen below key moving averages, indicating increased weakness.

The next important support levels are placed between 23,650 and 23,800.

On the upside, any recovery attempt is expected to face resistance around the 24,150–24,300 zone.

With volatility remaining elevated, analysts recommend a cautious approach with strict stop-loss discipline.

Stock Pick 1: Ather Energy – Buy Recommendation

Target Price: ₹1,340 | Stop Loss: ₹1,125

Ajit Mishra has recommended buying Ather Energy, citing strong technical momentum and a positive price structure.

The stock has been maintaining a bullish trend by forming higher highs and higher lows, indicating continued buying interest.

The stock is trading above key moving averages, suggesting strength in the medium-term trend.

Ather Energy has also witnessed increased trading volumes during upward movements, indicating stronger participation from investors.

The recent breakout from a flag formation has further improved the technical outlook.

Why Ather Energy Looks Positive

• Strong bullish price pattern

• Breakout from consolidation phase

• Positive momentum indicators

• Healthy volume support

According to the analyst, investors can consider accumulating the stock around current levels with proper risk management.

Stock Pick 2: Sun Pharma – Buy Recommendation

Target Price: ₹2,025 | Stop Loss: ₹1,830

The second buy recommendation is Sun Pharmaceutical Industries, which continues to benefit from strength in the pharmaceutical sector.

The stock has delivered a technical breakout after remaining in a consolidation phase for nearly two years.

Sun Pharma recently moved above its previous record high, suggesting the possibility of a renewed long-term uptrend.

The stock is also trading above its 20-day DEMA, reflecting sustained buying strength.

Key Factors Supporting Sun Pharma

• Strong pharmaceutical sector momentum

• Breakout above previous highs

• Positive long-term trend

• Favourable risk-reward setup

Investors with a long-term view may consider accumulating the stock through cash delivery.

Stock Pick 3: ITC – Sell Futures Recommendation

Target Price: ₹264 | Stop Loss: ₹290

While Ather Energy and Sun Pharma have shown positive momentum, ITC has been facing technical weakness.

Ajit Mishra has recommended a sell futures strategy on ITC Limited due to weakening price action.

The stock has underperformed the broader market and remains within a declining trend.

ITC recently lost momentum near its 20-day EMA and broke below a narrow trading range with increased volumes, indicating fresh selling pressure.

Technical Concerns for ITC

• Weak price structure

• Breakdown from consolidation range

• Higher selling volume

• Negative momentum indicators

Traders may consider short positions with a strict stop-loss near the recommended level.

Investor Strategy: Stay Selective During Market Uncertainty

Market experts believe the current environment requires patience and discipline rather than aggressive positioning.

Investors should focus on:

• Companies with strong fundamentals

• Stocks showing technical strength

• Proper portfolio diversification

• Controlled exposure during volatility

Short-term traders should closely monitor support and resistance levels, while long-term investors may use market corrections to accumulate quality stocks gradually.

Key Levels to Track

Nifty 50

• Resistance: 24,150–24,300

• Immediate Support: 23,800

• Next Support Zone: 23,650

Market Factors to Watch

• West Asia geopolitical developments

• Crude oil price movement

• Foreign institutional investor flows

• Upcoming quarterly earnings

Conclusion: Selective Buying Remains the Preferred Strategy

The recent market correction has created uncertainty, but analysts believe opportunities remain available in stocks with strong technical structures.

Ather Energy and Sun Pharma are showing positive breakout signals, while ITC faces continued pressure due to weakening momentum.

As volatility remains high, investors should avoid panic decisions and focus on disciplined investing strategies with proper risk management.