Nifty Stabilizes After Rebound: What's Next for the Indian Stock Market?
The Nifty index has stabilized after rebounding from the 25,700 zone, with the broader chart structure of higher tops and higher bottoms still intact. However, the index is entering a consolidation phase near recent highs, with buying emerging on dips but resistance capping upside.
Key Levels to Watch
The 26,050–26,300 band remains a key hurdle. A decisive move above this zone could open the door to a rally towards 26,350–26,500. Immediate support is placed at 25,900.
Trading Strategies
Traders can consider buying Nifty December futures around 26,150 or Nifty 26,300 CE of Dec 30 expiry around `130 for a potential upside in the near term. Upside targets to be watched for Nifty are around 26,350-26,400. Longs to be placed with stop loss of 25,900.
Top Stock Bets
- NMDC: Buy; CMP Rs 78, Stop Loss Rs 75, Target Rs 83
- Ashok Leyland: Buy; CMP Rs 163, Stop Loss Rs 158, Target Rs 175
- SRF: Buy; CMP: Rs 3,023, Stop Loss: Rs 2,970, Target: Rs 3,180
- UltraTech Cement: Buy; CMP: Rs 11,723, Stop Loss: Rs 11,565, Target: Rs 12,130
- Fortis Healthcare: Buy; CMP: Rs 870, Stop Loss: Rs 845, Target: Rs 920
- Eternal: Buy; CMP: Rs 295, Stop Loss: Rs 280, Target: Rs 320
Market Outlook
Despite bouts of intra-week volatility, Nifty managed to hold above its 5-WEMA, maintaining a weekly close above 26,000. The repeated formation of narrow-bodied candles with long wicks on the weekly chart signals compression—typically a precursor to a sharp directional move.
A sustained move above 26,050 remains the key trigger for a bullish thrust. Once crossed, the index is well-positioned to head toward the 26,330–26,500 zone. Until this breakout is confirmed, an opposing move cannot be ruled out.