Market today: On November 26, Nifty remained above 26,200 amid buying in all sectors and Indian equity indices closed on a strong note. BSE Midcap and Smallcap indices gained 1.2% each. All sectoral indices closed in the green. In this, Media, Auto, Private Bank, Oil & Gas, Power, PSU, Realty, Consumer Durables, Pharma Metal and PSU Bank gained 1-2%.
Top gainers in Nifty included JSW Steel, HDFC Life, Bajaj Finserv, Bajaj Finance, Jio Financial. While Bharti Airtel, Asian Paints, SBI Life Insurance were among the top losers.
How will the market move in future?
Analysts say that due to the expectation of rate cut by the Federal Reserve next month and the soft comments of the RBI Governor, the Indian markets have crossed the resistance and may reach new highs further.
Pravesh Gaur, Senior Technical Analyst, Swastika Investmart Is of the opinion that today’s rally gives solace that all sectors have participated in it and such a secular rally will improve investor sentiment. This rally is also getting support from sector-specific buying, in which growth is being seen everywhere. Metal stocks and PSU banks are leading the gains, supported by improving global commodity sentiment and selective value buying.
Large market participation shows that this surge is not limited to any one sector, thereby strengthening the entire market structure. Overall, a combination of strong global cues, easing rate concerns and large-scale buying have helped the market consolidate after recent weakness. If Nifty surpasses the all-time high of 26,277, it may soon reach 26,500. At the same time, there is immediate support for it at 25,800.
Pravesh Gaur further said that from a technical point of view, a rebound has been seen in Nifty after testing the lower level around 20-SMA. The index is currently trading above its short-term moving averages (9-DMA and 20-DMA), indicating a short-term pullback rally. However, it is still hovering near an important resistance zone of 26,200–26,277, which coincides with the upper trendline and earlier supply area. Holding above this level will be necessary for a move towards 26,400–26,500 in the short term.
On the downside, 25,800–25,750 remains a key immediate support, followed by a strong base near 25,500 with 50-day moving average. Momentum indicators are also supporting the trend. Overall, the trend remains positive above important support. But traders should adopt a buy-on-dips strategy until a decisive breakout above resistance confirms new strength.
Another analyst said that this rally has more strength and today’s move is not just a temporary bounce.
Drumil Vithalani, Technical Analyst, Bonanza Said that today’s market rally has come due to monthly expiry short-covering, strong support from PSU banks and metal stocks and positive global cues. FIIs have sharply reduced short positions. Due to which there has been an upward trend. Technical structures of both Nifty and Bank Nifty show higher highs and higher lows with rising EMAs, indicating continued buying on dips. Option-chain support around Rs 25,850–25,900 has also provided a strong floor for Nifty. Improved global sentiment and new domestic sectoral strengths have made the move broader and healthier. Overall, this rally is a combination of short-covering, sector rotation and supportive technicals rather than just a temporary bounce.
Trading plan: Once the new high is crossed, the momentum of bulls will increase further, stay long and buy in dips.
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