The Nifty MidCap 100 index is showing a classic inverted head and shoulders pattern. The upside target, projected from the head to the neckline, comes to nearly 72,000, suggesting the potential for a significant upside run in the index, Ashish Kyal, the CMT, Founder and CEO of Waves Strategy Advisors said in an interview to Moneycontrol.
He advised using any dips as buying opportunities in line with this positive momentum.
In case of Nifty 50, he believes the index is on the verge of a breakout, suggesting strong upward momentum in the near term. "The index could reach levels around 26,400 in the second half of the current month. Also, this can be 3rd wave on upside as per Elliott wave," he said.
Do you see an inverted head-and-shoulders breakout forming in the Nifty Midcap 100 index on the weekly charts? If so, does it indicate the potential for a stellar rally despite intermittent consolidation?
The Nifty MidCap 100 Index is showing a classic inverted head and shoulders pattern, with a breakout above the neckline at approximately 60,250. Currently, the index has recorded its highest weekly close at 60,739.
The upside target, projected from the head to the neckline, comes to nearly 72,000, suggesting the potential for a significant upside run in the MidCap index. This strong performance is notable, especially considering India is still standing at a 50% tariff, highlighting the robust relative outperformance of Indian equities.
Additionally, Bank Nifty has already reached lifetime highs, and the Nifty is close to moving there. The MidCap index is also on the verge of a breakout. These indicators point to very strong bullish signals from a technical perspective.
It is advisable to use any dips as buying opportunities in line with this positive momentum.
Do you expect the uptrend to continue in Star Health after its consolidation breakout and 7 percent rally last week?
Star Health and Allied Insurance demonstrated a strong breakout last week. The stock has formed a clear inverted head and shoulders pattern, signalling an upside target around Rs 580.
Given the short-term overbought RSI, a buy-on-dips strategy is advisable rather than chasing the stock at current levels. Support on the downside is around Rs 500, which also aligns with the neckline of the pattern. As long as this level holds, the overall trend remains positive, supporting the target of Rs 580.
Are you bullish on City Union Bank and Canara Bank?
City Union Bank has formed a rounding bottom pattern and delivered a strong breakout, with the weekly close sharply higher. The overall trend for the stock is positive, with an upside target around Rs 320 or higher. On the downside, support lies near the prior swing level of Rs 240, which should hold to maintain the bullish outlook.
Canara Bank has been a strong outperformer within the PSU banking sector, showing significant relative strength compared to Bank Nifty. The overall trend remains upside-biased, with targets near Rs 170, provided the support at Rs 130 remains intact.
Do you see the possibility of the Nifty 50 moving beyond 26,277 (its record high) in the second half of the current month?
The Nifty 50 weekly candle managed to close above the prior week’s high after three consecutive weeks of decline, indicating a potential shift in momentum. Prices are on the verge of a breakout, suggesting strong upward momentum in the near term. The index could reach levels around 26,400 in the second half of the current month. Also, this can be 3rd wave on upside as per Elliott wave.
On the downside, support lies near 25,740, the low recorded on the Bihar election result day. A breach below this level may lead to a few days of consolidation before another breakout occurs.
Do you believe Marico may break out on the higher side, given the consolidation seen since the second half of April?
Marico has been consolidating within a range since May 2025, with resistance around Rs 750 and strong support near Rs 690. While a breakout has not yet occurred, the overall undertone appears positive.
Trader can use dips to buy around Rs 730, aiming for a move back toward Rs 750 or possibly higher. On the downside, the key support level is around Rs 715.
Do you expect the Bank Nifty to reach 60,000 before the end of this calendar year?
Bank Nifty has been a market leader over the past several months, being the first index to reach lifetime highs. Currently, prices are near the prior swing high and poised for an upside breakout. The index could reach 60,000 in the near term, provided the support at 57,800 holds.
From a weekly perspective, the public sector banking space (PSU banks) has been outperforming, and private sector banks are expected to catch up, further supporting the upside rally. Overall, technical patterns suggest Bank Nifty is potentially entering the 3rd wave higher.
What are your top two bets for next week?
Paras Defence and Space Technologies
Defense companies continued their upward movement, outperforming the market, with the Nifty India Defense Index surging 4% in the past one week. In which, Paras surged by more than 6% post company reported strong quarterly earnings. On the daily chart, stock is trading in a rectangular range of Rs 609 to Rs 773 levels since July 2025 which indicates accumulation.
If prices manage to give a close above Rs 773 levels, then it can result into a bullish breakout of the said pattern which can push prices towards Rs 850 levels or higher. On the downside Rs 725 is the crucial support.
Pharma sector is on the verge to give breakout. In which, Lupin is trading at important resistance of Rs 2,070 levels which also happens to be near a neckline of the rounding bottom pattern and any breakout of it can trigger fresh course of rally towards Rs 2,200-2,240 levels or higher. Prices are also protecting prior day's low since past three sessions which is a positive sign. On the downside, Rs 1,985 level should remain protected.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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