Chartist Talk: Has Nifty 50 entered the third wave of its uptrend to reclaim record highs by Diwali?

Realty sector is on the verge of the breakout. In which, Godrej Properties have given a breakout of the classic Tripple Bottom pattern in the previous session with surge in volumes which is a positive sign. Post reversing from major price action support area of Rs 1,900-1,950 levels i.e. on September 10, prices have been protecting prior day’s low on closing basis which keeps overall tone on the positive side. As long as support zone of Rs 1,900-1,950 levels remains protected upside move towards Rs 2,260 levels is expected which is the pattern target.

Based on the charts, do you see the possibility of a strong rally in the Nifty PSU Bank index?

PSU Banking index has been a major contributor to the rally on Banking index. Since past 3 weeks the sector has surged by nearly 9%. Prices have broken above resistance of the broader consolidation which was near 7,300 levels. Short term indicators are overbought so buy on dips is better strategy.

We can expect index to touch lifetime highs of 8,000 eventually. This view is valid as long 7,100 levels remain protected on the downside on closing basis.

Do you think the Bank Nifty will take more time to gain strength?

The Bank Nifty have shown rally of more than 4% post reversing from 53,561 levels. In this rise, PSU banks have outperformed the index as compared to Private Banks. We expect private banks also to start showing outperformance over next few weeks. The index has short term hurdle near 56,000. Above this, Bank Nifty can reach towards the levels of 57,500 on upside. Immediate support is at 54,800 on downside.

Do you believe the Nifty 50 will surpass its June swing high next week and reclaim its record high before Diwali?

Nifty has been climbing the wall of worry despite of all the events. The tariff of 50% is still not gone but the index has rallied from 24,400 to 25,350 levels already. This shows relative strength. Nifty is probably starting wave 3rd on upside and this can be fast and strong. Many will miss out this rally as per 3rd wave personality. We can expect index to touch 26,100 levels and can possibly reclaim the record high levels before Diwali.

What are your top two stock picks for the coming week?

Bank of Baroda

The stock has shown strong momentum in the last week, moving up from Rs 230 to Rs 255, marking a steady up move. On the broader timeframe, the stock has been consolidating within a Rs 232 – 257 range since the past few months which indicates accumulation. In the previous session, prices finally broke above the range and was up by more than 1%. For now, one should use dips towards Rs 245 -248 levels as a buying opportunity with the upside aim of Rs 260 levels which is a closest resistance followed by Rs 270 levels. On the downside, Rs 240 is the nearest support level.

Gland Pharma

Pharma sector is showing outperformance in current rally. In which, Gland Pharma has consistently moved in higher highs and higher lows, and gained 10% post reversing from trendline support. Currently prices are consolidating in a range of Rs 1,970-2,050 levels. Post breaking above Rs 2,050 levels good rally is expected which can push the prices higher towards Rs 2,200 levels. On the downside, Rs 1,940 levels support level should remain protected.

Do you think there is still more upside potential for Polycab India?

Polycab India has shown strong recovery after rebounding from 50 EMA (Exponential Moving Average) in August 2025. The consistent formation of higher highs and higher lows on bigger timeframes since April 2025 indicates a sustained uptrend and growing investor confidence.

This technical strength, coupled with the fact that the stock has reclaimed its major resistance zone, suggests that there could still be upside potential, especially if it breaks above the Rs 7,600 mark decisively with strong volume support for targets of Rs 8,400 levels.

Are you extremely bullish on Ashok Leyland?

Ashok Leyland has been in a structural uptrend. The stock has also given a breakout of the Rounding bottom pattern which is a strong bullish sign. As the daily RSI is approaching near overbought territory one should avoid catching tops and should adopt buying on every decline approach to ride the trend with upside targets of Rs 150 followed by Rs 160 levels. On the downside, Rs 132 is the crucial support which is also a neckline of the Rounding Bottom pattern.

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