Stock Market: Nifty Targets 24,200 Amid Volatility
India’s benchmark Nifty 50 index is poised for further gains in April, with ICICI Securities’ Vice President Dharmesh Shah projecting an upward move to 24,200. This anticipated rise represents an 80% retracement of the previous market correction from 24,857 to 21,965. However, Shah cautions that this rally will not follow a linear trajectory, as market fluctuations driven by global economic uncertainties and upcoming U.S. trade tariff announcements could lead to short-term volatility.
Nifty’s current momentum stems from a strong technical breakout, which saw the index recover a 19-session decline within just 14 sessions. This rapid retracement signals a structural turnaround, reinforcing optimism among investors. With a bullish trend in place, Shah advises adopting a buy-on-dips strategy, as strong support is expected in the 22,800–23,000 range. Traders and institutional investors are closely watching this level as a potential entry point for long-term gains, particularly as the market continues to digest global macroeconomic developments.
Highlights:
Nifty 50 is expected to reach 24,200 in April, representing an 80% retracement.
The market may experience intermittent volatility due to U.S. tariff concerns.
Buying on dips is recommended, with strong support in the 22,800–23,000 range.
Banking Sector Leads the Charge: Bank Nifty Set to Hit 53,500
The private banking sector has emerged as a key driver of the current market rally, with Bank Nifty staging a sharp rebound from its recent lows. The index, which had been in a downtrend for five months, has now witnessed a trend reversal after forming a double-bottom pattern above its 100-week Exponential Moving Average (EMA). This structural shift has encouraged traders to take long positions in banking stocks, further propelling the index upward.
Shah expects Bank Nifty to reach 53,500, citing an 80% retracement of its prior decline from 54,467 to 47,702. This level also coincides with December 2024’s peak of 53,888, making it a crucial resistance zone. With private sector banks exhibiting strong relative strength, analysts believe the sector is well-positioned for further gains, especially as interest rate stabilization and robust loan growth support valuations.
Highlights:
Bank Nifty is targeting 53,500, supported by a double-bottom breakout.
The index is trading above the 100-week EMA, confirming a positive trend shift.
Private banks are leading the rally, supported by strong fundamental growth prospects.
Top Three Stock Picks for April: Hindustan Aeronautics, Tata Steel, and PFC
With broad-based market participation, Dharmesh Shah has identified three stocks that offer strong upside potential in April. These stocks span aerospace, metals, and power finance, making them strategically positioned across different sectors.
Hindustan Aeronautics (HAL): Defense Sector Strengthens
Hindustan Aeronautics Ltd (HAL) has demonstrated resilience in the defense sector, rebounding strongly from its 100-week EMA and breaking an eight-month falling trendline. The stock has witnessed rising trading volumes, signaling strong investor confidence in its long-term growth trajectory.
Investment Recommendation:
Buy range: ₹4,160–4,280
Target price: ₹4,750
Stop-loss: ₹3,948
Tata Steel: Metal Sector Rebound Amid Weakening Dollar
With global metal prices stabilizing, Tata Steel has seen a technical breakout from a nine-month falling channel, signaling a trend reversal. The recent cooling of the U.S. Dollar Index has also provided support for metal stocks, improving their export competitiveness.
Investment Recommendation:
Buy range: ₹153–159
Target price: ₹176
Stop-loss: ₹146
Power Finance Corporation (PFC): Bullish Momentum Builds
After correcting 32% from its December 2024 high, PFC has established a strong base near its 100-week EMA, paving the way for an upward breakout. The stock has now entered a higher high-low formation, indicating the end of its corrective phase and the beginning of a new uptrend.
Investment Recommendation:
Buy range: ₹408–420
Target price: ₹470
Stop-loss: ₹384
Highlights:
HAL, Tata Steel, and PFC have emerged as top stock picks for April.
Each stock exhibits strong technical breakouts, backed by sectoral trends.
Strategic stop-loss levels ensure risk management while targeting higher gains.
Pharma Stocks Under the Radar: Sector Recovery in Focus
The Nifty Pharma index has been in consolidation mode after an 18% correction over six months. While the global pharmaceutical sector faces uncertainties due to U.S. regulations, certain Indian pharma companies with limited U.S. exposure are emerging as attractive investment opportunities.
Shah favors Cipla and Ajanta Pharma, given their strong domestic market presence and stable earnings outlook. Additionally, in the CDMO (Contract Development and Manufacturing Organization) space, stocks like Piramal Pharma, Syngene International, and Laurus Labs are forming technical bases, indicating potential upside.
Highlights:
Nifty Pharma remains in a consolidation phase after a sharp correction.
Cipla and Ajanta Pharma are preferred for their low U.S. regulatory risks.
CDMO players, including Syngene and Laurus Labs, offer long-term potential.
Real Estate Stocks Show Signs of Revival: DLF and Godrej Properties in Focus
The Nifty Realty index has undergone a 30% correction over the last eight months, but technical indicators suggest a potential recovery. The index is now finding support near its 100-week EMA, which often serves as a key turning point for long-term investors.
With expectations of an RBI rate cut, sentiment in the real estate sector is improving, potentially providing a fresh boost to housing demand and construction activity. Among individual stocks, DLF and Godrej Properties stand out as strong contenders for a rebound, given their robust project pipelines and healthy balance sheets.
Highlights:
The Nifty Realty index is stabilizing after a 30% decline.
DLF and Godrej Properties are top picks for investors eyeing real estate recovery.
RBI rate cuts and strong demand drivers could fuel further upside in the sector.
