Market Volatility to Continue Amid Weak Technical Setup, Warns Rajesh Palviya

Rajesh Palviya, Senior VP – Technical and Derivatives Research at Axis Securities, anticipates continued volatility in the Indian equity market due to an unstable technical setup. While the Nifty index remains range-bound, Palviya notes that a breakout beyond immediate resistance zones could briefly lift sentiment.

"If Nifty at all crosses above the 24,800–24,850 zone, then we could see some bit of short covering to trigger in Nifty trades, and then this pullback can extend further towards 25,000. But overall, 25,000 may act as a stiff resistance for any pullback in the near-term perspective," said Rajesh Palviya.

He stressed that despite possible short-term rebounds, 25,000 will likely remain a strong ceiling unless supported by sustained volume and follow-through action. As such, traders are advised to approach with caution and not assume a lasting rally until structural confirmation appears.

According to Palviya, the market is currently lacking strong directional cues. “The technical chart pattern suggests that any upside move in key indices like Nifty will require a strong breakout above critical resistance zones, supported by high trading volumes,” he noted.

He highlighted that Nifty is hovering in a range-bound zone, with potential for either side movement depending on broader cues. “If the index fails to hold immediate support levels, we could witness more downside pressure,” Palviya said, emphasizing the importance of risk management for traders during this uncertain phase.

The recommendation from Palviya is clear: focus on stock-specific opportunities rather than taking index-wide positions. He advised traders to avoid aggressive long positions until a clear trend confirmation emerges.

Sectors like banking and auto could present trading opportunities, but Palviya warned against high-beta stocks, which could amplify losses during volatile swings. Global factors like geopolitical tensions and upcoming macroeconomic data will also play a key role in shaping short-term sentiment.

Palviya concludes that discipline and a strict stop-loss strategy are essential tools in navigating the current environment.