Will Nifty break past 26,350 for another rally this week?

Analysts expect the uptrend in Nifty to continue as long as key support zones are respected, even as the index moves through a consolidation phase that is nearing record highs. A break above the upper range could extend the rally towards 26,500-26,800, while dips are still seen as buying opportunities and not weakness. Among the stocks, IndusInd Bank and PB Fintech are the overall favorites.SAME CHAVAN

HEAD OF RESEARCH –TECHNICAL & RELATED AT ANGEL ONEWhere is Nifty going?
With so many failed attempts around record highs, the recent price action in Nifty has certainly caught so many momentum traders wrong-footed. The moment we approach the 25,800–25,700 zone, the buying tends to emerge suddenly, and on the other hand, sellers are unwilling to give up around 26,300–26,300. We observe the ‘upward sloping trendline’ around 25,800 (which joins the recent lows) and will act as a make-or-break level in the short term. Right off the bat, 26,500–26,700 are the levels to look out for. Use an intraweek decline to create long positions by keeping in mind the immediate support at 26,000 and ultimately 25,800.

Trading Strategy:

We recommend a Bull Call Spread strategy for the December 16 expiration date, which is considered moderately bullish. One can buy 1 lot of ATM 26,200 CE for Rs 180 and sell 1 lot of OTM 26,400 CE for Rs 85. The net outflow is Rs 95 (180-85), i.e. Rs 7,125, which is the maximum potential loss.

The breakeven point is 26,295, and the maximum profit is Rs 105 (26,400 – 26,200 – 96), or Rs 7,875.

TOP STOCK BETTS:
PB Fintech (Policy Bazaar): Buy (CMP: Rs 18.93), Stop Loss: Rs 1,760, Target: Rs 2,100

Share prices appear to have emerged from the recent consolidation phase, with prices rising around the breakout point. The weekly chart looks promising.

IndusInd bank: Buy (CMP: Rs 870), Stop Loss: Rs 852, Target: Rs 899 This was one of the strongest bank counters in the last two odd months. On Friday we saw prices break the ‘Bullish Flag’ pattern, indicating a continuation of the upward movement.

SOMIL MEHTA
HEAD OF ALTERNATIVE RESEARCH, MIRAE ASSET SHAREKHAN

Where is Nifty going?
After touching an all-time high, Nifty is consolidating in a 400-point band and remains above the 20-DMA (25,994), with immediate support at 25,891. On the weekly chart, it continues to form higher highs and lows and trades above the 10-WMA (25,764), while the momentum indicators are still positive.

A breakout above 26,327 could accelerate the uptrend. The broader trend remains positive above 25,750, with upside potential towards 26,800. NBFCs remain strong, with Bajaj Finance and L&T Finance favored. IT is also strong, with TCS and Tech Mahindra showing strength.

Trading Strategy: The recommended strategy for Nifty is to buy Nifty futures in the range of 26,350–26,320 with a stop loss at 26,049 for a target of 26,600 and 26,800.

TOP STOCK BETTS:

Chola Finance: (CMP: Rs 1,732) Buy in the range Rs 1,740-1,720, Stop loss: Rs 1,640, Target: Rs 2,000

Chola Finance is forming a triangle pattern above the 20 and 40 DMA, indicating a potential trend resumption. The momentum indicators have turned positive with a crossover above the zero line. The stock has been broadly consolidating for a month and is now trading above the 20-DMA (Rs 1,700), reaffirming its strength.

Tata Consulting Services: (CMP: Rs 3,241) Buy in the range Rs 3,250-3,200, Stop loss: Rs 3,100, Target: Rs 3,480

TCS has broken out of an ending diagonal pattern and is trading above the 20 and 40 DMAs, indicating a continuation of the uptrend. The momentum indicators have turned positive with a crossover above the zero line. The stock has formed higher highs and higher lows since last month to close above the 20-DMA (Rs 3,137).

DHUPESH DHAMEJA
DERIVATIVES RESEARCH ANALYST, SAMCO SECURITIES

Where is Nifty going?
Nifty continues to form higher lows and shows accumulation after declines, while 20-DEMA once again acted as support and initiated intraday recovery. Reclaiming 26,100 to 26,150 – previously a supply zone – now immediate support. The RSI near 60 indicates solid momentum, without fatigue, and derivatives positioning remains positive with a Put value of 26,000 and a PCR rise to 1.19, while call writers move to higher strikes. There is upside headroom towards 26,330–26,350 (all-time high zone). A sustained move above could trigger short covering towards 26,500. Key downside support remains at 25,900–25,800, corresponding to the Fibonacci levels of 0.382–0.50 and the rising 20-DEMA.

Trading Strategy: The recommended strategy for Nifty options for the December 9 expiry date is a Bull Put Spread, ideal for moderately bullish market prospects. The trader buys one lot of the 26,200 strike Put options at a premium of Rs 75-80 and simultaneously sells one lot of the 26,400 strike Put options at a premium of Rs 208-212. This strategy limits both risk and reward, creating a defined range for results. The breakeven point is at 26,215, with a maximum potential loss of Rs 5,002 and a maximum profit of Rs 9,998.

TOP STOCK BETTS:

IndusInd bank: (CMP: Rs 870), Stop Loss: Rs 830, Target Price: Rs 950
The stock has left its bullish pennant behind, confirming a resumption of the trend following a strong consolidation following the rally from ‘720-870’. The breakout is supported by steady volumes, with the price now holding firmly above the 200-day EMA, reinforcing structural strength. RSI above 60 reflects strong momentum.

PB Fintech: (Policy Bazaar) (CMP: Rs 1,894), Stop Loss: Rs 1,800, Target Price: Rs 2,050

The stock has moved off the descending trendline and ascending triangle supported by higher lows between Rs 1,700 and 1,820, reflecting strong supply absorption. A close above Rs 1,880–1,900 has turned this zone into support. Elevated breakout volumes and RSI above 60 confirm strong institutional momentum.