Nifty headed to 24,800 next; Vinay Rajani names CG Power and Pidilite as top trading picks

Vinay Rajani of HDFC Securities says the broader market rally still has legs, with 24,000–24,100 as the level to buy on any dip and 24,800 as the next meaningful target.

After a sharp 2,200-point rally from 22,200 to 24,400, the Nifty is pausing near a key technical level, but HDFC Securities' Vinay Rajani sees this as a consolidation, not a reversal. The AVP and Senior Technical and Derivative Analyst believes the index has more room to run, backed by strong broader market participation and healthy sector rotation.

Nifty above 50-day EMA — resistances falling one by one

The Nifty is now trading above its 50-day exponential moving average (EMA), a key technical milestone. Rajani notes that resistances are being taken out gradually and the index is sustaining at higher levels — a sign of underlying strength. The standout feature of this rally, he says, is how broadly based it has been: midcap and smallcap stocks have continuously outperformed, many oversold names have bounced sharply, and sector rotation has been orderly — first capital goods, now FMCG joining the party.

"Even after recovering more than 10% from the lower level, I get the impression that the market can still extend the rally," Rajani said in conversation with ET Now.

Key levels: Buy the dip at 24,000–24,100; target 24,800

For traders and investors looking to add positions, Rajani identifies 24,000–24,100 as a strong short-term support zone where fresh buying is likely to emerge on any pullback. He recommends using dips to this range to accumulate long positions. The next upside target is 24,800 — which corresponds to the 200-day EMA for the Nifty — where some meaningful resistance and potential retracement could be expected. Positional traders should keep a stop loss at 23,700.

Stock pick 1: CG Power: Fresh breakout in the power sector

The power sector has been one of the consistent outperformers in this rally, and Rajani's top pick from the space is CG Power. The stock has given a fresh breakout from a downward-sloping trendline on the weekly chart — a textbook bullish setup for positional traders. He recommends entering around ₹772, with a stop loss at ₹755 and a target of ₹805 on the upside.

Stock pick 2: Pidilite: Inverted head and shoulders signals reversal

From the FMCG space, which is just beginning to attract momentum, Rajani flags Pidilite Industries as an attractive setup. The stock was oversold and is now forming an inverted head and shoulders pattern on the daily chart — a classic reversal formation. With momentum building, he sees short-term positional gains on the cards. The suggested entry is around ₹1,385, stop loss at ₹1,350, and the target is ₹1,470 — potentially achievable in three to four trading sessions.