Indian equities opened the week on a hopeful note, but the rally quickly turned sideways, leaving the market in a narrow range.
Market Overview
Even though the momentum faded, the overall technical picture still looks bullish. Experts say the market is likely to pause before moving higher again.
Nifty Outlook: Buying Dips May Push Index Higher
The Nifty is trading above its 20‑, 50‑, 100‑ and 200‑day moving averages, a sign that the uptrend is intact.
In the short term, the index could bounce between 26,000 and 26,350. A similar range earlier led to a breakout, so a repeat could be possible.
- Support: 26,000 (primary) and 25,700 (stronger base)
- Target: All‑time highs beyond 26,500
All major moving averages are sloping upward, confirming the positive bias. A dip to the support levels may be a buying opportunity rather than a warning sign.
Mid‑Cap Revival
Mid‑cap stocks, which have lagged for months, are showing new strength. The Nifty Mid‑Cap 150 index sits above its key averages and finds support near 22,000.
- Potential move to 23,000‑23,200 in the next 1‑2 months
- Strong support zones: 22,000‑22,100
Some beaten‑down mid‑caps are beginning to reverse, suggesting they could outpace large‑caps briefly.
Railway Stocks Gaining Attention
Railway‑related stocks such as IRCON, RITES and RVNL have fallen about 60% from their July 2024 highs. They are now forming base patterns and double‑bottoms near long‑term averages, hinting at a better risk‑reward profile over the next 2‑4 months.
Sector Highlights: IT, FMCG, Metals
IT
The IT index surged from around 33,400 to nearly 39,500. A brief pause may happen, but the medium‑term outlook stays positive.
- Key support: 37,500
- Sector positioned well for growth through 2026
FMCG
The FMCG index is consolidating between 54,000 and 57,000. This range could break upward.
- ITC may climb to 450‑460
- Nestlé India, after breaking 1,200, could reach 1,400‑1,500 by 2026
Metals
While the metal rally looks strong, it may be stretched. Copper, for example, is up about 90% since September 2025, so a pullback is possible. Experts suggest booking profits and staying away from new metal positions for now.
Stock Picks: Coal India and Trent
- Coal India: Broke out of a long consolidation above 395. Target 460‑470 for 2026. Stop‑loss below 370.
- Trent: After a sharp fall, it now finds support near the 200‑week EMA. Potential recovery to 6,600‑6,700 by 2026. Stop‑loss below 3,400.
Sectors to Stay Away From
Precious and base‑metal sectors are currently risky due to steep commodity moves. Gold, silver and copper offer unfavorable risk‑reward at present, so it’s better to wait on the sidelines.
Disclaimer
These views are from market analysts and do not represent the opinion of the news outlet. Remember, this is perspective, not prediction. Do your own research before making any investment decisions.