Stock Market Outlook: Nifty Correction May Offer a Buying Opportunity
The Indian stock market witnessed a weak and range-bound week, snapping its two-week winning streak. The Nifty 50 declined approximately 0.8% to close at 24,366, while the Sensex fell nearly 0.6% to around 78,000.also
Uncertainty surrounding US-Iran relations, volatility in crude oil prices and fluctuations in global bond yields affected investor sentiment. However, strong corporate earnings for the first quarter of FY27 provided some support to the market.
Broader markets also remained under pressure, with mid-cap and small-cap indices declining. Metals, Pharma and Auto were among the weaker sectors, while Consumer Durables outperformed. India VIX remained near 11.3, indicating subdued volatility despite cautious market sentiment.
According to Mehul Kothari, Deputy Vice President—Technical Research at Anand Rathi, the current Nifty decline appears to be a healthy retracement rather than a reversal of the broader uptrend.
Is the Nifty Correction a Buying Opportunity?
Mehul Kothari maintains a bullish outlook on Nifty and believes that the broader technical structure remains constructive.
Nifty has corrected towards the 50% Fibonacci retracement level near 24,190. If the correction extends, the 50%–61.8% Fibonacci retracement zone between 24,190 and 24,054 is expected to provide strong support.
According to Kothari, this zone could represent the maximum likely downside during the current corrective phase. Therefore, a decline towards 24,190–24,054 may be used as an opportunity to build fresh positions, provided the index continues to protect this support area.
What Are the Important Nifty Levels?
| Nifty Level | Technical Significance |
|---|---|
| 25,000 | Major upside target |
| 24,500 | Crucial breakout level |
| 24,366 | Previous closing level |
| 24,190 | 50% Fibonacci retracement support |
| 24,054–24,050 | 61.8% Fibonacci and crucial support |
What Is Mehul Kothari’s Nifty Prediction?
Nifty needs to sustain above 24,500 to regain bullish momentum. A confirmed breakout above this level could gradually lift the index towards 25,000 and potentially higher levels over the coming weeks.
As long as Nifty holds the 24,050–24,190 support zone, corrections may be treated as buying opportunities. However, a decisive fall below 24,050 would weaken the bullish setup and require a reassessment of the market trend.
Bank Nifty Outlook: Will It Break Above 58,000?
Bank Nifty remained in a consolidation phase during the week and is forming a symmetrical triangle pattern. This chart formation indicates that a significant directional move may emerge once the index breaks out of the pattern.
A sustained move above 58,000 could attract fresh buying and push Bank Nifty towards 59,000–59,500 in the coming sessions.
On the downside, 57,000 remains the crucial support because it coincides with the rising trendline. A decisive break below 57,000 could extend the consolidation and keep the index under pressure.
Important Bank Nifty Levels
| Bank Nifty Level | Technical Significance |
| 59,500 | Higher breakout target |
| 59,000 | Initial upside target |
| 58,000 | Crucial bullish breakout level |
| 57,000 | Rising trendline and key support |
| Below 57,000 | Consolidation may extend |
What Is the Bank Nifty Trading Strategy?
Mehul Kothari maintains a cautiously bullish outlook on Bank Nifty as long as the broader technical structure remains intact.
Traders may consider bullish positions after a sustained breakout above 58,000, with potential targets of 59,000 and 59,500. A break below 57,000 would weaken the setup and increase downside risk.
Mehul Kothari’s Stocks to Buy
Mehul Kothari has recommended three short-term stocks: IRB Infrastructure Developers, MMTC and CESC.
| Stock | Buying Level | Target Price | Stop-Loss | Potential Upside |
| IRB Infra | Above Rs. 19.50 | Rs. 21 | Rs. 18.80 | 7.7% |
| MMTC | Above Rs. 65 | Rs. 68 | Rs. 63.30 | 4.6% |
| CESC | Around Rs. 167 | Rs. 180 | Rs. 160 | 7.8% |
IRB Infra Share Price Target
Mehul Kothari recommends buying IRB Infra above Rs. 19.50 for a target price of Rs. 21. Traders should maintain a stop-loss at Rs. 18.80.
A sustained move above Rs. 19.50 could confirm short-term buying momentum. The recommendation offers a potential return of approximately 7.7% from the entry level.
MMTC Share Price Target
MMTC can be bought above Rs. 65 for a short-term target of Rs. 68. The recommended stop-loss is Rs. 63.30.
Traders should enter only after the stock sustains above the suggested buying level. The potential upside from Rs. 65 to Rs. 68 is approximately 4.6%.
CESC Share Price Target
CESC can be bought around Rs. 167 for a target price of Rs. 180, while maintaining a stop-loss at Rs. 160.
The stock offers a potential upside of approximately 7.8% from the recommended entry price. A decisive fall below Rs. 160 would invalidate the bullish trading setup.
Overall Market Strategy
The Nifty outlook remains positive as long as the index holds the 24,050–24,190 support zone. Dips towards this zone may offer buying opportunities, while a sustained breakout above 24,500 could revive momentum towards 25,000.
Bank Nifty traders should monitor the 57,000–58,000 range. A breakout above 58,000 may trigger a rally towards 59,000–59,500, while a fall below 57,000 could prolong the ongoing consolidation.