Analysts anticipate the Nifty’s upward trend to continue this week, driven by a multi-month consolidation breakout and strong sector performance. Key support levels are expected to hold, with a buy-on-dips strategy recommended as the index targets 26,500-26,800. Several stocks, including Adani Ports and Kotak Mahindra Bank, are highlighted for potential gains.
Analysts expect the Nifty’s upward momentum to continue this week, supported by a breakout from multi-month consolidation, strong large-cap leadership, and firm sectoral momentum in banks, autos, infra, and financials. As long as key support zones hold, the index is seen heading towards 26,500-26,800 in the near term, with a buy-on-dips strategy remaining the preferred approach.
DHARMESH SHAH
HEAD OF TECHNICALS, ICICI SECURITIES
Where is Nifty headed this week?
The breakout from a 14-month consolidation underlines structural improvement, making us believe Nifty would sustain above the 26,300 mark, and eventually head towards 26,500 this week. Strong support is at 25,700 as it is the 80% retracement of last week’s rally (25,842-26,310), coinciding with the two-month rising trendline. Bank Nifty, and Midcap indices have moved higher, and now the Nifty 500 — which carries 90% of market capitalisation — is gearing up to challenge its all-time high. Data shows that seasonality favours bulls with a 70% success rate, with average returns of around 2.5%.
Trading Strategy: Nifty is expected to head towards 26,500. Any decline towards 25,930-26,000 should be used as a buying opportunity for multiple targets of 26,300 and 26,500. Buy on-dips remains valid as long as Nifty defends 25,700.
TOP STOCK PICKS: Adani Ports: Posted a resolute breakout from a cup-and-handle pattern, offering a fresh entry opportunity. The formation saw only a shallow 50% retracement of the preceding four-month rally (1,036-1,494) while establishing a higher base above the 20-week EMA. We recommend buying in Rs 1,466- 1,516 range for a target of Rs 1,675, with a stop loss at Rs 1,377.
Bharat Electronics: BEL stock has remained an outlier, maintaining a higher-high-higher-low structure while holding fi rmly above its 20-week EMA. The stock is now about 5% below its all-time high, signalling strong bullish momentum and scope for further upside. RSI is also inching above 60, indicating strengthening momentum. Recommend buying in Rs 405-415 range for a target of Rs 466, with a stop loss at Rs 385.
TANMAY SHAH
RESEARCH HEAD, SIHL
Where is Nifty headed this week?
The monthly chart shows a decisive breakout from a cup-andhandle formation. A breakout on a higher time frame reinforces the bullish structure and suggests scope for a sustained move, with initial targets at 27,200 and then 27,800 over the medium term. As long as the index holds above 25,942-26,020 support, the outlook stays positive with upside potential toward 26,580 and beyond.
Trading Strategy: Traders may consider adopting a buy-on-dips approach, placing a stop loss at 25,970 for an upside target of 26,580. For derivatives participants, a bull-call spread — consisting of a long position in the 26,250 CE and a short position in the 26,550 CE for December 9 expiry. It offers a prudent way to participate in the ongoing momentum while keeping the risk defined.
TOP STOCK PICKS
Kotak Mahindra Bank: Forming a head-and-shoulders breakout structure on weekly chart, signalling a potential end to its five-year consolidation. A decisive weekly close above Rs 2,200 would confirm the pattern and trigger a long-term trend reversal toward new all-time highs, while a close below Rs 1,990 would invalidate the bullish setup.
Hindustan Zinc: On the weekly chart, the stock has formed a bullish engulfi ng pattern taking support at the 20-week SMA. As long as it sustains above Rs 470, it is expected to maintain bullish momentum toward Rs 508, followed by Rs 525.
SUDEEP SHAH
HEAD – TECHNICAL & DERIVATIVE RESEARCH DESK, SBI SECURITIES
Where is Nifty headed this week?
Nifty retains its higher-high higher-low formation, supported by strong momentum across key sectors. The 20-day EMA zone of 25,950-25,900 is likely to act as immediate support. As long as this zone holds, the index appears positioned to advance towards 26,500 and subsequently 26,800. Broader market confirmation, however, is still lacking.
Trading Strategies: Traders can initiate long positions in Nifty on dips towards 25,950-25,900 with a protective stop at 25,800 and upside targets of 26,500 and 26,800. In Bank Nifty remains strong and fresh positions can be considered on declines to 58,800-58,700, with a stop loss at 58,300, for a target of 60,300 and 61,000.
TOP STOCK PICKS
Axis Bank: Extended its momentum this month and continues to hold firmly above its 20-day and 50-day EMAs. It shows strong relative strength in private banks, supported by improving volumes, and its price structure indicates a breakout-continuation pattern. As long as it stays above the Rs 1,230-1,240 support zone, the stock is poised to move towards Rs 1,345-1,365 in the near term.
Siemens: Stock has turned upward after a healthy consolidation and is trading well above its 20- and 50-day EMAs. It shows strong relative strength against the Capital Goods index with rising volumes, while an uptick in RSI signals firm momentum. The price structure also points to a breakout continuation. Holding above Rs 3,200 keeps the stock poised for fresh highs towards Rs 3,450-3,550 in the near term.
