Nifty may take a breather after rally, but bullish bias intact

Nifty’s sharp two-month rally appears to be losing steam near record highs, with traders turning cautious amid signs of consolidation. While short-term volatility may persist, most technical indicators suggest that the broader trend remains positive as long as the index holds above key support levels around 25,500–25,600. A decisive move above 26,100–26,300 could open the way for fresh lifetime highs in the weeks ahead.

SAMEET CHAVAN

HEAD OF RESEARCH – TECHNICAL & DERIVATIVES, ANGEL ONE

Where is Nifty headed this week?
It’s a bit disheartening to see the market struggle around the previous all-time high. On the weekly chart, we can see two back-to back Doji candles, which is a sign of indecision. Ideally, looking at the last couple of sessions, one should remain cautious, but there is some evidence that is keeping us a bit hopeful. Firstly, the index has now entered a strong support zone of the October 25, 2025 low (25,718.20) and the high of June 30, 2025 (25,669.35). In addition, the RSI-S oscillator on the weekly time frame has confirmed a trendline breakout, with the monthly candle registering the highest close since September 2024.

Trading strategy:
We remain upbeat and expect this recent decline to get bought into. Just going by the current scenario, traders can create long positions in 25,650–25,500 zone for multiple targets of 26,000, 26,300, and then new highs around 26,600. This trade setup remains valid as long as Nifty stays above the crucial support zone of 25,300, which can be a potential stop loss.

Top bets for the week:
IDFC First Bank: The stock is well poised for an extended move in the coming weeks. The stock price has confirmed a price-volume breakout on daily time frame. Hence, we recommend buying on a decline towards Rs 79 for a target of Rs 93. Stop loss should be at Rs 71.

Pratap Snacks: Stock has confirmed a breakout on Friday after prices traversed above the 200-DSMA level of Rs 1,060. We recommend buying for a target of Rs 1,135, with strict stop loss at Rs 1,055.

Agencies

DHUPESH DHAMEJA
DERIVATIVES ANALYST, SAMCO SECURITIES

Where is Nifty headed this week?
After a steady uptrend over the past few weeks, Nifty showed signs of fatigue in the latest trading week, forming a Shooting Star candlestick pattern on the weekly chart — a classic signal of waning bullish momentum. Despite touching an intra-week high of 26,097, Nifty failed to surpass the previous week’s high of 26,104, reinforcing strong resistance around 26,100–26,150. In the 4-hour time frame, Nifty has developed a double-top formation near 26,100 — a pattern that typically indicates short-term weakness. A decisive close below 25,700 would confirm this breakdown and could trigger further declines toward 25,550–25,500. The 20-DEMA (25,593) remains the next key support. The daily RSI has cooled to 58, signaling fading bullish momentum. Overall, Nifty’s structure appears bearish-to-range-bound for the near term. While a brief pullback toward 25,850–25,900 cannot be ruled out, sustained trade above 25,950– 26,000 will be essential to revive bullish sentiment. Conversely, a break below 25,700 could accelerate selling pressure, inviting a deeper correction in the coming sessions.

Trading Strategy:
Adopt a sell-on-rise approach near 25,850–25,900 with a stop loss above 26,020, aiming for 25,600– 25,500 on the downside. A decisive break below 25,700 would confirm a double-top breakdown and potentially accelerate weakness. At the same time, options traders can deploy a Bear Call Spread (sell 25,600 CE and buy 25,850 CE of the 11 November 2025 expiry) to benefit from overhead resistance and limited risk exposure. The overall technical price structure and derivative data both indicate a bearish-to-range-bound sentiment for the near term.

Top bets for the week:
ONGC: ONGC is trading near a key breakout level of Rs 257 after consolidating for nearly 263 days, indicating a strong base formation. The stock remains above its 10- day and 20-day EMAs, showing sustained bullish momentum. A move above Rs 257 could trigger an upside toward Rs 278, while RSI above 65 and rising volumes point to steady accumulation. A close below Rs 245 would negate the bullish setup.

MCX: MCX is forming a bullish flag pattern, indicating potential for a continued uptrend toward Rs 9,800. The stock is holding above Rs 9,000 and its 20-day EMA, showing strong buying interest. A breakout above the falling trendline signals renewed momentum, supported by an RSI near 62. A close below Rs 8,900 would negate the bullish setup.

SOMIL MEHTA
HEAD OF ALTERNATE RESEARCH, MIRAE ASSET SHAREKHAN

Where is Nifty headed this week?
On the daily chart, the Nifty remains above its 20-day EMA (25,500) and 40-day EMA (25,300), reflecting short-term strength. The higher-top, higher-bottom pattern and positive momentum indicators suggest that buying interest is still firm. As long as Nifty holds above 25,500–25,600, the outlook remains positive, with potential upside targets around 26,300 and above in the near term.

Trading Strategy:
Traders can buy Nifty contracts at spot levels of 25,722 with a stop loss at 25,590 for a target of 26,100.

Top bets for the week
Glenmark Pharma: The stock has broken out of a brief consolidation phase. Can be bought at Rs 1,891 for a target of Rs 2,100, with a stop loss at Rs 1,835.

TCS: TCS has rebounded from a key support zone and is showing signs of renewed strength, forming higher tops and higher bottoms. Can be bought at Rs 3,058 for a target of Rs 3,200, with a stop loss at Rs 2,980.