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Most technical indicators suggest early signs of stability and scope for a further bounce. A decisive move above 22,650 could trigger short-covering, pushing Nifty toward the 22,800–23,000 zone, say technical analysts. Stocks in focus are National Aluminium, Hindustan Copper, Tata Motors, M&M, Polyplex, SJS, Inox India, SRF, Manappuram Finance, BEL, Hindalco, Tata Steel, UPL, Kotak Bank, and Bajaj Finance. CHANDAN TAPARIA HEAD, TECHNICAL RESEARCH & DERIVATIVES, MOTILAL OSWAL FINANCIAL SERVICESWhere is the Nifty headed this week? The Nifty index has formed a small bullish candlestick on the daily chart, while a strong bullish candle with a long lower shadow on the weekly chart signals support-driven buying and the potential for a short-term recovery. Technical indicators like the relative strength index (RSI) show a bullish crossover on the daily chart, with the weekly RSI approaching a positive stance. This price action suggests early signs of stability and scope for a further bounce. However, persistent FII selling and the lack of sustained follow-up buying remain key concerns for any major market reversal. Nifty needs to hold 22,350 zone to extend bounce toward the 22,900–23,000 range, with immediate support seen at 22,350 and 22,200. What should investors do? India VIX has been hovering around the 13.50 level for the past seven sessions after falling from 16.3, indicating stability after recent volatility. Metals, energy, and financials maintain a positive stance, while auto and IT may see capped upside with stock-specific action. Stocks showing bullish setups include SRF, Manappuram Fin, BEL, Hindalco, Tata Steel, UPL, Kotak Bank, Bajaj Finance, and JSW Steel. On the downside, weakness is visible in OFSS, IndusInd Bank, LTI Mindtree, Page Industries, Infosys, Jubilant Food, and Tech Mahindra.ARPAN SHAH SENIOR RESEARCH ANALYST, MONARCH NETWORTH CAPITALWhere is the Nifty headed this week? Nifty index recovered from the psychological 22,000 level, closing with a bullish candlestick formation. FII derivative positions remain 82% short, and index is still in oversold territory. Traders can expect a short-covering rally and consider buying the index at current levels for upside targets of 23,000–23,400. The Nifty Midcap Select and Nifty Next 50 indices are poised for recovery, with potential bounces to 11,900 and 65,000 levels. Bank Nifty underperformed last week and formed a doji candlestick. A breakout above 49,000 could trigger a shortcovering rally toward 50,500 level. What should investors do? Reliance broke below the Rs 1,200 level during the week but bounced back. Traders can buy Reliance for upside targets of Rs 1,300–Rs 1,350. Metal index has given a bullish breakout: National Aluminium and Hindustan Copper are top picks. In auto, Tata Motors and M&M are near monthly support levels. For small and mid-caps, investors can consider Ritco Logistics, Polyplex, SJS Enterprises, Inox India, and Godawari Power & Ispat. IT sector may underperform, and rallies in Wipro and Infosys present short-selling opportunities. SRF, Manappuram Fin, BEL, Hindalco, Tata Steel, UPL, Kotak Bank, Bajaj Finance, JSW Steel have formed a bullish pattern.MEHUL KOTHARI AVP, TECHNICAL RESEARCH, ANAND RATHI SHARES & STOCK BROKERS Where is the Nifty headed this week? There is substantial evidence suggesting that the 22,000-21,800 zone serves as a strong support level. The Nifty spot index rebounded after dipping below 22,000. The RSI on the weekly scale has bounced from 34, which matches the June 2022 lows. A sustained move above 22,650 could trigger shortcovering, pushing Nifty toward the 22,800-23,000 zone. Near 23,200, a major resistance from a falling trendline presents a crucial trend-changing zone. Only a weekly close above 23,200 would confirm that the market is out of the woods. On an intraday chart, there appears to be a possibility of a pullback toward 22,300. On the downside, a breach of 22,000-21,800 would negate the bullish structure, dragging Nifty down toward 21,200. What should investors do? Stocks should be accumulated in a staggered manner, focusing on quality names near the 21,800-22,000 support zone. A more aggressive approach should be considered only above 23,200, which may take time to materialise. Until then, traders should stay nimble, using dips for entries and booking profits near resistances. A break below 21,800 could weaken sentiment, dragging Nifty toward 21,200.

Mumbai: Indian investors' risk appetite is losing steam amid a sharp fall in stocks driven by geopolitical crises, weak earnings, expensive valuations, and relentless selling by foreign institutional investors. The combined margin trading fund (MTF) book on the NSE and BSE has shrunk by ₹15,000 crore since January 1 and ₹5,000 crore in the past week. MTF is a system allowing investors to borrow to buy shares they cannot afford and it stood at ₹71,500 crore on Friday. Margin funding was around ₹86,500 crore at the end of December and ₹75,909 crore at the end of February. According to market participants, some brokers resorted to forced selling after steep stock declines earlier this month. The sharp drop in MTF reflects growing investor caution amid ongoing market volatility."Elevated stock valuations, the US tariff stance, subdued earnings, and a tactical shift of FIIs toward China have contributed to a more conservative approach to leveraged positions" said Arun Chaudhry, director and chief business officer, m.Stock by Mirae Asset Capital Markets.118827318In margin funding, investors buy stocks by paying up only part of the total value. Brokers fund the rest of the purchase by charging an interest rate. For instance, if an investor buys a share worth ₹100 under the MTF facility, she would need to bring in only 20% of the transaction value or ₹20, while the remaining 80% or ₹80 is covered by brokers. MTF is also collateralised by pledging investors' existing shares.The Nifty has declined 11% since October 1 while the Nifty Midcap 150 and Nifty 250 have plunged 16% and 20%, respectively. The market has been in a downtrend since October, and many positions in MTF are currently facing challenges as the negative trend persists, according to market participants."Uncertainty surrounding Trump's tariff decisions and the slowdown in the domestic economy has led investors to expect limited relief from a market rally in the near term. As a result, they are decreasing their exposure in MTF, as the burden of interest costs feels substantial in this environment," said Rajesh Palviya, head, technicals and derivatives, Axis Securities.