📈 Nifty May See Profit Booking Ahead of Long Weekend: Expert Insights and Stock Picks

As Indian stock markets gear up for a long weekend, traders and investors are closely watching the Nifty’s recent rally, which has added nearly 1,500–1,600 points in just a few sessions. This sharp upward move, primarily driven by gap-up openings, has brought the index close to a key resistance zone, signaling a possible pause or consolidation.

“With the weekly expiry aligning with the holiday break, this is a logical time for some profit booking,” says Rahul Sharma, Director & Head of Technical Research at JM Financial. According to him, the current market setup does not provide a favorable risk-reward ratio for fresh long positions, and it’s wise for traders to exit some holdings in the Nifty for now.

He suggests waiting for more clarity post-holiday before initiating new trades, especially in the broader index.

Despite this cautious tone, Sharma remains positive on the banking and financial sectors, which have shown strong momentum and resilience. “Banks and financials are still very robust… we could see more upside in the coming week,” he added, advising traders to trail their stop losses in these segments to lock in gains while protecting capital.

🔍 Stock Recommendations by Rahul Sharma:

1. Cholamandalam Finance

   • Target: ₹1,700

   • Stop Loss: ₹1,530

   • Why: Looks strong technically and offers upside at current levels.

2. Bank of Baroda

   • Target: 8–10% upside

   • Stop Loss: ₹233

   • Why: Stable fundamentals and strong technical setup.

3. Adani Ports

   • Short-Term Target: ₹1,300–₹1,325

   • Medium-Term Potential: ₹1,400+

   • Why: Took out its 200-day EMA, indicating a potential reversal.

While the broader market may witness some cooling off, certain sectors and stocks remain well-positioned for further gains. Sharma’s analysis underlines that strategic profit booking, not panic selling, is the right approach during such overheated market phases.

As markets resume post-holiday, traders should be alert for fresh signals and sector rotation, especially in banking and infrastructure-related stocks.