Nifty nears end of correction, key support seen at 25,200–25,300

Nifty may be nearing the end of its correction, with strong support around 25,200–25,300, said analysts. A move above 25,550–25,660 could revive the uptrend towards 25,800–26,000, while a break below 25,000–25,300 may extend the decline.

NAGARAJ SHETTI
SENIOR TECHNICAL RESEARCH ANALYST, HDFC SECURITIES

Where is Nifty Headed?
A bull candle with a long lower shadow has formed on the daily chart, indicating a high wave-type pattern. Such patterns near support often signal a potential bottom reversal after confirmation. Nifty has also rebounded from the key 25,400–25,300 support zone, which was the previous trend-line resistance. The index is on the verge of an upside reversal. A sustained move above 25,550– 25,600 could open buying opportunities and push Nifty towards 26,000–26,100 in the near term. Support for stoploss levels remains at 25,300.

Trading Strategy:

Traders can buy Nifty November futures above 25,600, with a stop-loss at 25,400 for a target of 26,000 over a two week timeframe.

Top Stock Bets:

Union Bank of India: The stock is currently positioned at the edge of a breakout from a downsloping trendline hurdle at Rs 153. The volume pattern and RSI signal positive indications. We recommend buying at Rs 153.15 for a target of Rs 163, for a timeframe of 2–3 weeks, with stop-loss at Rs 148.

Bajaj Finserv: The bullish pattern with higher tops and bottoms is intact, and the stock price has formed a new higher bottom last week. Daily and weekly RSI show a positive indication. Traders can buy at Rs 2,110 for a target of Rs 2,250 over the next 2–3 weeks. The stop-loss should be placed at Rs 2,040.

Agencies

SACCHITANAND UTTEKAR
VP – RESEARCH (TECHNICAL & DERIVATIVES), TRADEBULLS SECURITIES

Where is Nifty Headed?
Nifty seems close to ending its corrective phase. A mild dip towards 25,050 is possible, but a close above 25,660 would confirm strength. A sustained move below 25,000 could extend the correction. Until a weekly close above 25,650, Nifty may remain fragile and prone to shallow pullbacks, so traders should stay cautious and prefer buy-on-decline over chasing breakouts. Trading Strategies: Traders can buy Bank Nifty up to 57,620, with a stop-loss at 57,220 and a target of 58,720. Despite consecutive Dojis indicating indecision, the index is holding above the 5-WEMA near 57,350. The weekly ADX has risen to 27, and Friday’s Bullish Engulfing pattern has reinforced support around 57,400, near the 20-DEMA at 57,445.

Top Stock Bets:
BSE: A breakout from the bullish flag formation indicates the uptrend is intact, with a pattern target of Rs 3,020. The weekly ADX is signalling strengthening trend momentum. Short covering above Rs 2,700 could further accelerate the move. We recommend accumulating up to Rs 2,610 with a stop-loss at Rs 2,570.

Max Financial Services: A sustained move above Rs 1,640 could push the stock towards Rs 1,780. We recommend accumulating up to Rs 1,600 with a stop-loss at Rs 1,580.

MEHUL KOTHARI
DEPUTY VICE PRESIDENT, TECHNICAL RESEARCH, ANAND RATHI SHARES AND STOCK BROKER

Where is Nifty Headed?
On Friday, the index took support at the Cup & Handle breakout extension, turning 25,200–25,300 into a strong demand zone. As long as Nifty stays above this, the larger bullish structure is intact. A move above 25,600 would confirm the end of the pullback and open a move towards 25,800–26,000, and possibly new highs. If it slips below 25,300, the index may test 25,100–25,000. Overall, the structure stays bullish, and dips should attract buyers.

Trading Strategies:
Traders can follow a buy-on dips approach as long as Nifty stays above 25,000. A sustained move above 25,600 can be used to enter fresh longs for targets of 25,900–26,000, with a stop-loss at 25,300. Shorting should be avoided unless the index breaks below 25,000, which currently looks unlikely. Investors can also accumulate index ETFs like NIFTY BEES, NIFTY 500 and NIFTY SMLCAP 250 ETF, as current levels offer favourable risk-reward setup.

Top Stock Bets:
Hindustan Zinc: After a brief correction, the stock has bounced from the 61.8% retracement zone and is showing signs of trend revival. Momentum indicators are improving. We recommend buying at Rs 468–460 for a target of Rs 520 over 90 days, with a stop-loss at Rs 435.

Tata Steel: Broken out above its previous all-time high, signalling a strong continuation of the long-term uptrend. EMAs and Ichimoku indicators support ongoing bullish momentum. Buy at Rs 181–175 for a target of Rs 200 for 60–90 days for a breakout play with healthy risk–reward, with a stop-loss at Rs 166.