Stock market: Sudeep Shah, Head of Technical and Derivatives Research, SBI Securities Talking about the future direction and condition of the market, he said that the benchmark index Nifty has shown good growth after gaining strong support in the zone of 25,300-25,330. This bullishness coincides with the 50-day EMA and 50% Fibonacci retracement of the previous move from 24,587 to 26,104. This technical setup served as a strong base and opened the way for a sharp uptrend. Nifty has gained almost 700 points in the last 5 trading sessions from the recent low of 25,318.
Technically, Nifty is trading well above all its important moving averages. These averages are also moving upwards. This is a sign of continued bullishness. Both Daily and Weekly RSI remain in the positive zone, which is strengthening the possibility of further upside. Hopefully this momentum will continue. In the short term Nifty can touch the level of 26,200 and then 26,500.
On the downside, the 20-day EMA zone of 25,700-25,650 remains an important support band for Nifty. Going below this zone may lead to profit booking, but as long as this support remains, the overall trend will remain positive. Going forward, we may see good growth in private banks, public sector banks, financial services, defence, automobile, oil and gas, capital market, infrastructure and pharma stocks.
Speaking on banking stocks, Sudeep Shah said that after moving sideways for three consecutive weeks, Bank Nifty has finally made a breakout and given a strong upside move. In this rise it has created a new all-time high. The index closed this week above the 58,500 level. This has created a big bullish candle on the weekly chart. Which is giving clear indications of new strength in banking shares.
Currently, the index is above all its important moving averages. Moreover, these averages are also increasing. This is a bullish formation. Momentum indicators are also indicating bullishness. Both daily and weekly RSI remain in the positive zone. Besides, the Weekly MACD histogram is also showing bullish signals. Due to which confidence in breakout increases.
Going forward, the range of 58,700-58,800 will act as resistance for Bank Nifty. A decisive move above 58,800 could open the way for a bullish move towards 59,500 and then 60,200 in the near future. On the downside, the 20-day EMA zone around 57,800-57,700 will act as a strong support. As long as this support continues, the overall trade of the index will remain bullish.
Expectation of profit booking in Muthoot Finance
Do you expect profit booking in Muthoot Finance after registering a gain of more than 15 percent last week? Responding to this, Sudeep Shah said that Muthoot Finance has gained momentum after strong second quarter results. The stock is supported by record AUM growth, good guidance and strong demand for gold loans amid rising gold prices.
From a technical point of view, the stock was consolidating in the range of Rs 3,378-3,089 since mid-October and the Bollinger Bands were getting smaller before the breakout on November 11. This week’s strong follow-through buying is indicating new bullish momentum with increasing volume. The RSI has reached 80.44, its highest level since June 2025. This is a sign of overbought conditions. In such a situation, the possibility of minor profit booking in this stock before the new rally cannot be ruled out.
Market mood: There are strong bullish signals in Nifty Pharma from technical indicators, these 2 stocks will have bumper earnings next week.
There is still scope for growth in Vodafone Idea
Sudeep Shah said Vodafone Idea showed strong follow-through after horizontal trendline breakout. This stock is continuously doing higher high, higher low formation. The stock has seen a sharp rise since the beginning of November after finding strong support at the 50-day EMA. Momentum indicators also look good. RSI is in bullish mood. ADX is strengthening and MACD slope is moving upwards. This combination of price action and momentum indicators shows that the stock may still have room for further upside. However, traders should maintain strict stop-losses. A series of negative and positive news related to Vodafone Idea can be seen. In such a situation, any bad situation can take away the recent momentum. In such a situation, there is a need to be very cautious about this stock.
Market mood: There are strong bullish signals in Nifty Pharma from technical indicators, these 2 stocks will have bumper earnings next week.
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