The new trading week has begun on a cautiously optimistic note, with markets holding onto key support levels despite recent volatility. Analysts believe that a decisive move above 24,600 on the Nifty will be critical to confirm a trend reversal.

Speaking to ET Now, Rajesh Bhosale, Technical Analyst, highlighted the importance of this threshold. “The week and the September month have started positively. But Nifty has been struggling to cross its previous high for the past five sessions. For today, 24,600 is the crucial mark. Once it sustains above that, we can say the market is attempting a reversal,” he said. On the downside, he pegged strong support around 24,400–24,450, coinciding with the August swing low and a bullish gap.

IT Sector Back in Focus

The IT sector, often seen as a laggard in recent months, is attracting attention once again. With the rupee under pressure, the Nifty IT index is hovering around its 200-week moving average, raising hopes of a technical revival.

Bhosale pointed out that IT stocks have been showing resilience even when the broader market weakened. “In the last couple of weeks, whenever Nifty has shown strength, IT has outperformed. Some midcap IT counters, in particular, are showing strong signs that outperformance may continue,” he explained.

Trading Ideas of the Day

Among his top picks, Bhosale recommended Mphasis, which surged nearly 5% in early trade. “On the daily chart, we are seeing an inverse head-and-shoulder pattern along with a strong Marubozu candle and high volumes. Futures data indicates long positions are being built. With a stop loss of ₹2,815, we expect Mphasis to head towards ₹3,150 in the near term,” he advised.

His second call was on Exide Industries, which has broken out of a prolonged consolidation phase. “The stock is showing both a channel breakout and a flag pattern breakout. With multiple technical confirmations, Exide looks poised for outperformance. With a stop loss of ₹396, one can look at near-term upside,” Bhosale added.

Broader Market Resilience

Despite Nifty’s hesitation at higher levels, the broader market continues to do well, with sectoral rotations providing opportunities for traders. Analysts remain watchful for sustained momentum above resistance levels that could set the tone for September.