Chartist Talk: Bank Nifty may hit 59,000 this month, but 60,000 hurdle strong, says Nilesh Jain; eyes BPCL, JK Tyre

Nilesh Jain is the Head- Equity Technical & Derivative Research at Centrum Broking

The recent chart pattern following record high indicates a possible pause in the ongoing trend in the Bank Nifty, but, the overall structure remains relatively stronger compared to the Nifty index, Nilesh Jain, the Head- Equity Technical & Derivative Research at Centrum Broking said in an interview to Moneycontrol.

According to him, the Bank Nifty may test 59,000 levels in the November series, but a move towards 60,000 may be challenging in the near term.

He bets on BPCL and JK Tyre for November. "Momentum indicators and oscillators remain firmly in buy mode on both daily and weekly charts, suggesting continued strength in BPCL, while JK Tyre is forming a large rounding bottom pattern on the daily chart and is trading well above all its short-term and long-term moving averages," he said. Here are edited excerpts:

Q: Which two stocks are on your radar for November?

BPCL has given a breakout from a cup and handle pattern, scaling to a fresh record high. Momentum indicators and oscillators remain firmly in buy mode on both daily and weekly charts, suggesting continued strength. The conservative target for this pattern is placed around Rs 410, while immediate support lies near Rs 350.

JK Tyre is forming a large rounding bottom pattern on the daily chart and is trading well above all its short-term and long-term moving averages. A decisive move above Rs 460 will confirm the breakout, paving the way for an upside towards Rs 500 levels, while immediate support is placed at Rs 425.

Nilesh Jain, Head- Equity Technical & Derivative Research at Centrum Broking

Q: Do you think the market uptrend remains intact despite the ongoing consolidation? Does this suggest that the market could soon begin a new leg of its upmove toward the 26,500 level in November?

The markets witnessed a strong upmove during the October series, with the Nifty index giving a breakout above a falling trendline placed around 25,400 levels. However, the index faced stiff resistance near the 26,000 mark and has struggled to sustain at higher levels.

At present, we are seeing a retracement of the entire October rally, with the 50 percent retracement level around 25,350 expected to act as a strong support zone. While momentum indicators and oscillators have turned bearish on the daily chart, they remain in buy mode on the weekly timeframe, suggesting that short-term weakness may persist.

In the near term, Nifty could test the 25,350–25,200 zone, whereas a decisive breakout above 26,000 would reaffirm the bullish structure and open the path towards 26,500 levels.

Q: Do you expect the Bank Nifty to reach the 59,000 and 60,000 levels in November?

Bank Nifty recently hit a new record high and formed multiple Doji candles near the resistance zone, indicating a possible pause in the ongoing trend. However, the overall structure remains relatively stronger compared to the Nifty index.

We expect Bank Nifty to test 59,000 levels in the November series, though a move towards 60,000 may be challenging in the near term. Strong support is placed at 56,300 levels.

Q: Which two stocks are on your radar for November?

BPCL has given a breakout from a cup and handle pattern, scaling to a fresh record high. Momentum indicators and oscillators remain firmly in buy mode on both daily and weekly charts, suggesting continued strength. The conservative target for this pattern is placed around Rs 410, while immediate support lies near Rs 350.

JK Tyre is forming a large rounding bottom pattern on the daily chart and is trading well above all its short-term and long-term moving averages. A decisive move above Rs 460 will confirm the breakout, paving the way for an upside towards Rs 500 levels, while immediate support is placed at Rs 425.

Q: Are you bullish on Bank of Baroda?

Bank of Baroda has given a fresh breakout and surged to a new record high, supported by higher-than-average volumes, indicating strong buying interest. Momentum indicators and oscillators remain firmly in buy mode on both daily and weekly charts, suggesting continued strength. The positional upside target is seen around Rs 340, while immediate support is placed at Rs 265 levels.

Q: Do you think Indian Bank appears overbought at the moment?

Indian Bank is in a secular uptrend, forming a higher top–higher bottom pattern on the daily chart. The stock is currently trading in uncharted territory, with the RSI reaching 82, indicating overbought conditions. While a temporary pause or profit-taking cannot be ruled out, the overall structure remains bullish, supporting a buy-on-dips approach. The upside potential remains open towards Rs 950+ in the near term, with strong support placed at Rs 810 levels.

Q: Do you believe the Nifty PSU Bank Index is at the beginning of a new leg of its upmove?

The PSU Bank index has surpassed its psychological barrier of 8,000, entering uncharted territory. It also registered a breakout from an 18-month-long consolidation range, signalling renewed strength in the space. The conservative upside target is placed around Rs 9,000+, while the base has now shifted higher to Rs 7,800 levels. We expect the positive momentum to continue in the November series as well.

Q: Which sector looks strongest for November?

The Nifty Realty Index has formed a strong base and recently broke out from a rectangle pattern on the daily chart, indicating the potential for a follow-up move on the upside towards Rs 1,050 in the near term. Immediate support is placed around Rs 920 levels.

The OMC (oil marketing companies) space also looks promising, as the recent correction in crude oil prices is expected to benefit oil marketing companies. Stocks like Hindustan Petroleum Corporation, BPCL, and Indian Oil Corporation are likely to witness continued short-term momentum.

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