The Nifty50 slipped below its 20-day EMA on Monday but found strong support near the 21,800 mark and bounced back, forming a bullish belt hold candlestick pattern in the previous trading session.

“A mild rebound followed on Tuesday, supported by a positive RSI divergence, suggesting a possible move toward the 22,950–23,000 zone, where the 20-day EMA lies,” said Vatsal Bhuva, Technical Analyst at LKP Securities.

“A breakout above 23,200 (20-week EMA) could confirm a bullish trend, while a close below 21,800 may signal further weakness. Meanwhile, India VIX above 20 points to heightened volatility ahead due to global uncertainties and the RBI policy meet,” he added.

Key resistance levels are now placed at 22,800 and 23,000, while on the downside, 22,400 to 22,200 will act as immediate support zones.

The India VIX, a gauge of market fear, dropped sharply, indicating a decline in investor anxiety and reinforcing the bullish undertone.

“A strong bounce was seen from support levels near 22,000, and if the index continues to hold above this mark, any dip is likely to attract buying interest,” said Mandar Bhojane, Research Analyst at Choice Broking.

“Going forward, traders should watch for sustained moves above resistance zones and use dips near supports as fresh entry opportunities. Overall, the short-term market outlook remains positive with cautious optimism,” he added.

Stocks to Watch for Short-Term Trading Horizon (as recommended by experts): Expert: Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas (to ET Bureau)Berger Paints: Buy | Target: Rs 557 | Stop Loss: Rs 520

Tata Consumer: Buy | Target: Rs 1,115 | Stop Loss: Rs 1,040

Torrent Pharma: Buy | Target: Rs 3,365 | Stop Loss: Rs 3,200

Expert: Kunal Bothra, Market Expert (to ET Now)Asian Paints: Buy | Target: Rs 2,500 | Stop Loss: Rs 2,350

GlaxoSmithKline Pharma: Buy | Target: Rs 2,800 | Stop Loss: Rs 2,680

Indus Towers: Buy | Target: Rs 385 | Stop Loss: Rs 362

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)