Chartist Talk: Milan Vaishnav expects Nifty 50, Bank Nifty to hit fresh highs soon; bullish on Nifty IT & these 7 stocks

Milan Vaishnav is the CMT and founder of Gemstone Equity Research & Advisory Services

In the coming year, Nifty 50 and Bank Nifty are likely to move higher to record highs. According to Milan Vaishnav, the CMT and founder of Gemstone Equity Research & Advisory Service, the supports have shifted higher to 26,000-26,100 zone, which created a strong base for the markets to move past their previous highs.

So, he expects the key indices to move higher to their new highs. "But we would need market breadth to drastically improve if we have to sustain the current upside," he said.

Vaishnav is bullish on seven stocks including IDFC First Bank, Manappuram Finance, IIFL Finance, and Hindustan Copper.

Do you think the current consolidation in the Nifty 50 is likely to strengthen bulls for a move toward record highs and a potential breakout beyond them?

There are two answers to this. To begin with, Yes. I expect that the current consolidation that the Nifty has created between 26,200-25,700 range is likely to get resolved with a move on the upside. Going by the options data, the supports have shifted higher to 26,000-26,100 zone; this creates a strong base for the markets to move past their previous highs. So, yes, I expect the key indices, i.e., Nifty and Bank Nifty to move higher to their new highs.

Now, this brings me to the second part of my answer. Even if the markets manage to post their fresh lifetime highs, the health of the uptrend would remain weak and the sustainability would be a question. The main reason behind this is the non-confirmation of the market breadth. Even when the frontline index Nifty already formed its lifetime high earlier this month, the broader Nifty 500 is still away by 3 percent from its lifetime high formed in September last year. We would need market breadth to drastically improve if we have to sustain the current upside.

What does the record-low VIX indicate about the upcoming market move?

VIX presents a bit of a precarious picture. Presently, we are at one of its lowest levels. VIX not rising indicates that the market participants are not seeing any need to hedge the markets. But importantly, we need to understand that low VIX does not necessarily mean less risk. This, on the contrary, reflects complacency on part of market participants. Long periods of low volatility are generally followed by periods of high volatility, and we need to remain mindful of this.

Do you see the Bank Nifty holding last week’s low going forward and moving above the 60,000 mark again in the near term?

This would depend upon what the Nifty does in the near term. It is likely to relatively perform in line with the Bank Nifty. With regard to holding the low of the previous week, that would be too myopic view to take. I feel there is strong support near 57,400; so long as that stays defended, it would be fine with Bank Nifty.

What are your top two stock picks for 2026?

My top two picks for the coming year would be IDFC First Bank and Reliance Industries. While IDFC First Bank is staring at a multi-year breakout on long-term charts, Reliance has formed a classical cup and handle pattern on the higher timeframe charts. Both these stocks are likely to relatively outperform the broader markets and may generate significant alpha over the benchmark.

Are you bullish on Shriram Finance, IIFL Finance, Manappuram Finance, and Nuvama Wealth Management based on chart structures and pattern formations?

Yes, all these stocks are enjoying a strong uptrend. One can continue to stay invested in all these stocks from a medium to long term perspective.

Do you expect Hindustan Copper to continue its record-high run?

Yes, I expect this run to continue. However, from an immediate short-term perspective, some minor consolidation or retracement cannot be ruled out. These moves should be used to make fresh entry in the stock. By and large, I expect for some consolidation, I expect this run to continue.

Do you think Nifty IT has exhausted its recent rally, considering the weekly chart pattern formation?

No, not at all. There are no indications that suggest the IT Index having exhausted its upmove. It may have taken a breather, but the IT Index is breaking out from a multi-month consolidation and may inch meaningfully higher from current levels.