Rahul Ghose, Founder and CEO of Octanom Tech and Hedged, has advised investors to remain cautiously defensive on the Indian equity market, citing important technical levels that could determine the near-term direction of the Nifty 50.

According to Ghose, the Nifty 50 is likely to maintain support around the 23,000 level unless global market conditions deteriorate significantly. However, he noted that the index may struggle to generate substantial upside momentum unless it reclaims the midpoint of its current trading channel. While short-term gains may remain limited, he expects stronger upside potential to emerge over the coming months.

Ghose identified 23,150 as a crucial support level for the benchmark index. A close below this mark could trigger a decline toward 23,000, while the next major support zone lies around 22,180. He noted that this level is reinforced by a weekly Morning Star pattern and a previous daily swing low, indicating potential institutional buying interest. Below that, the 22,100 level aligns with the weekly 200-day exponential moving average, a historically significant support zone.

On sectoral trends, Ghose expressed a bearish view on the Nifty IT Index. He pointed out that the index has closed below its weekly 200 EMA and formed a bearish candle with a long upper wick on the weekly chart. Additionally, a completed Head and Shoulders pattern on the monthly chart suggests further downside risk, increasing the likelihood of the index breaking below its May low unless a strong technical reversal emerges.

In contrast, Ghose remains constructive on the banking sector. He highlighted that Bank Nifty has formed a Dragonfly Doji pattern on the weekly chart, indicating a possible exhaustion of selling pressure. While the index remains in a broader pattern of lower highs and lower lows, a decisive close above 55,536 could signal a trend reversal and attract fresh buying interest.

Among individual stocks, Ghose identified Titan Company and Federal Bank as his preferred picks for the week. He said Titan has rebounded strongly from its 200 EMA and is showing a series of bullish candlestick formations, suggesting continued upward momentum. Federal Bank, meanwhile, has witnessed a multi-year breakout and is benefiting from positive sentiment across the banking sector.

He also highlighted REC as a stock displaying favourable technical characteristics after forming a weekly Hammer pattern near its 200 EMA and a Morning Star pattern on the daily chart. However, he advised caution on Yes Bank, noting that the stock is approaching a significant resistance zone around ₹24 and may require a decisive breakout above that level before offering an attractive risk-reward opportunity.