IndiGo, DLF & Indian Bank shares: MOFSL's Arpit Beriwal flags caution

Arpit Beriwal, Manager – Derivatives Analyst (Equity Research) at Motilal Oswal Financial Services Ltd (MOFSL), shared his market outlook and stock-specific insights on Tuesday amid recent volatility in the benchmark Nifty50.

Beriwal noted that while Nifty recorded a strong recovery last week, it started facing selling pressure from the 26,000 mark on Monday. "The critical support level around 25,800 was breached, with the index sliding below 25,750. 25,900 will now act as the immediate resistance and 25,700 will be the next important support level for Nifty, which indicates a cautious short-term outlook for the index ahead of expiry," he told Business Today.

On the stock front, Beriwal highlighted DLF Ltd's weakening technical setup from the real estate space. He warned that the stock could decline further toward the Rs 650 level in the near term.

Additionally, he stated that Indian Bank's charts reflected negative momentum, suggesting softness in the PSU bank segment.

Addressing concerns over Interglobe Aviation Ltd (IndiGo's parent company), Beriwal pointed out that the stock broke down below Rs 5,400 without signs of an immediate reversal. He projected further downside movement towards the Rs 4,600 to Rs 4,500 range, highlighting continued pressure ahead.

Beriwal also noted the broader market weakness marked by widespread selling across major sectors. He suggested adopting a highly selective stock-picking strategy, focusing on resilient stocks amid rising India VIX (fear index) levels, which indicate increased market volatility.

He advised investors to wait for stabilisation in the broader market before taking fresh long positions. Meanwhile, sectors showing underperformance -- such as railways, engineering and realty -- may be opportunities for 'sell-on-bounce' trades given ongoing weakness.