In recent weeks, the market has experienced significant fluctuations, largely driven by the ongoing global tariff disputes and various macroeconomic influences. For those tracking the Nifty50, it’s been nothing short of a wild ride. After an impressive rally in March 2025, where the index shot up from 21,964 to 23,869, traders faced a swift downturn, plummeting to a 10-month low due to tariff increases announced by Donald Trump.

Nifty50’s Recent Volatility

As we step into April, the Nifty50 has demonstrated remarkable volatility, bouncing back from a low of 21,743 to soar above 23,400. This drastic shift has ignited discussions among traders and investors, many of whom are grappling with the Fear of Missing Out (FOMO). The index has rebounded approximately 8% from its recent lows, leaving many wondering if this marks a true bottom or if further turbulence lies ahead.

Analyzing Market Trends

When assessing market dynamics, hitting a 52-week low often signals negative sentiment. Currently, the Nifty50 is hovering just 2% above this threshold. But does this indicate a bearish trend?

Interestingly, we adopt a different approach by focusing on the 62-week low, a benchmark that has been tested only four times over the past two decades. You might ask, why 62 weeks? This number holds significance in technical analysis, as it represents a Fibonacci number—a key ratio that often coincides with major trend reversals.

Understanding the 62-Week Low

To visualize this, we incorporate a 62-week Donchian Channel into our analysis. This tool effectively captures the high and low range over a specified period. When prices break above the average line of this channel, it typically signals that bullish momentum is returning.

Currently, the Nifty50’s latest low stands at 21,743, while the 62-week low is positioned at 21,281. The average line of the Donchian Channel rests at 23,779. For bulls to gain genuine control, the Nifty must close above 23,800, a crucial point that would confirm that a potential bottom is in sight.

Bullish Indicators Emerge

Adding to the bullish sentiment, last week’s trading session produced a Bullish Belt Hold pattern. This classic reversal sign indicates robust buying interest, suggesting that savvy investors are stepping in aggressively.

As we await confirmation of a close above 23,800, it’s essential to consider strategies that can help navigate this potential rally and identify quality stocks for your watchlist.

Multi-Timeframe Strategy for Stock Selection

Our approach involves a multi-timeframe strategy, blending insights from daily, weekly, and monthly charts to pinpoint stocks exhibiting strong momentum and favorable trends. Here’s how to identify promising candidates:

• Golden Cross: Look for stocks that have formed a golden cross across all timeframes, indicating short-term moving averages (like the 50-period) crossing above long-term averages (like the 200-period).

• RSI Criteria: Ensure that the stock’s Relative Strength Index (RSI) is above 60 on daily, weekly, and monthly charts, signaling ongoing upward momentum.

Top Stock Picks to Watch

Using this strategy, we’ve identified 10 stocks from the Nifty500 index that currently stand out and warrant attention. These stocks have successfully met both the Golden Cross and RSI criteria across multiple timeframes, positioning them well for potential gains as the Nifty50 seeks to validate a bottom.

Assessing the Market Bottom

While technical indicators are aligning favorably, the market remains fraught with uncertainty. Factors such as the tariff war, global influences, and domestic concerns like inflation and interest rates will continue to shape the Nifty50’s trajectory. The current upward movement, coupled with a bullish reversal pattern, may hint that we are nearing a bottom.

Stay Cautious Yet Opportunistic

To maximize opportunities during these volatile times, it’s crucial to remain vigilant and strategic. Monitor the 23,800 level on the Nifty and keep an eye on the identified stocks for further strength. Should bulls reassert their dominance, these stocks could experience significant upward momentum in the weeks ahead.

As the market continues to explore its footing, astute investors are already positioning themselves for potential gains. Is the bottom truly here? Only time will reveal the answer, but by keeping these stocks in your sights, you’ll be poised for whatever comes next.

Disclaimer

This article serves purely for educational purposes and does not constitute investment advice. For personalized investment decisions, consult with a financial advisor tailored to your specific needs.

Brijesh Bhatia, a seasoned trader and technical analyst with over 18 years of experience, currently contributes insights at Definedge, having previously worked with prominent firms such as UTI and Edelweiss Securities.

Stay informed and engaged as we navigate these evolving market conditions together!