Nifty nearing medium-term bottom, buy for long term at this level: Axis Securities

Nifty has lost 16% or 4,158 points from its record high amid the ongoing correction. The 50-stock index reached its record high of 26,277 on September 27, 2024. In February, Sensex sinked 3.56% and Nifty tanked 3.63%. Nifty closed 5 pts lower at 22,119, falling for the ninth straight session on Monday. As Nifty has clocked loss of 7% in 2025, Axis Securities says the index is nearing a medium-term bottom. 

"The current market environment exhibits signs of excessive pessimism and fear – not without reason - which are often precursors to durable bottoms. While a clear bullish trigger is yet to emerge (this is critical), historical patterns, technical indicators, and sectoral valuations suggest that the market is nearing a medium-term bottom," said Axis Securities. 

"We would advise investors to allocate some long-term money between 21,700 - 22,000. While most of us can’t catch the exact top and bottom, prudent investing is about cashing in on opportunities, especially when sentiment is so one-sided. One such opportunity is now," said the brokerage. 

Nifty falling for five straight months, a trend last seen in November 1996, has raised concerns about a potential bear market, added the brokerage. The index has lost 1.28% in a year and declined 12.50% in six months. 

Commenting on the short-term outlook of Nifty, Shrikant Chouhan, Head Equity Research, Kotak Securities said, "On the upside, 22,200/73400 would be the immediate resistance zone for the bulls. If the market moves above 22,200/73300, it could rally up to 22,250–22,300/73500-73800. On the flip side, if it falls below 22,000/72800, traders may prefer to exit their long positions."

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities said, "The underlying trend remains negative. Any upside bounces from here could encounter resistance around 22,300 levels. A decisive move above 22,500 levels could confirm short term bottom reversal in the Nifty. On the other side, further fall below 22,000 levels could find next support around 21,800-21,700 band."