Trading Plan: Can Nifty 50, Bank Nifty hit fresh record highs?

Nifty Trading Plan for December 1

The Nifty 50 and Bank Nifty remained in the positive zone despite Friday’s consolidation, supported by technical and momentum indicators. In the ongoing momentum, if the Nifty 50 reclaims and sustains above 26,310 (record high), the 26,500–26,600 levels are the ones to watch, while the immediate key support is placed at the 26,100–26,000 levels. Meanwhile, the Bank Nifty is expected to surpass the psychological 60,000 mark, provided it defends 59,450, the immediate support, followed by 59,000 as the key support, experts said.

On November 28, the Nifty 50 fell 13 points to 26,203, while the Bank Nifty rose 15 points to 59,753. However, market breadth was weak, with about 1,504 shares down against 1,325 shares supported by bulls on the NSE.

Nifty Outlook and Strategy

Rajesh Bhosale, Technical Analyst at Angel One

After waiting for more than 14 months, the Nifty has finally recorded a fresh new high last week. However, despite this milestone, there was no major celebration on the street, as markets continued to consolidate around the 26,300 zone. On the daily chart, the structure remains constructive, with the index maintaining its sequence of higher tops and higher bottoms while continuing to trade above key short-term moving averages.

Importantly, last week, prices defended the 20 DEMA and formed a higher bottom. The key highlight was Wednesday’s strong bullish candle, followed by consolidation near its upper end, indicating a time-wise correction and a likely continuation of the uptrend in the coming sessions.

Going ahead, the midpoint of Wednesday’s bullish candle, around 26,000, is likely to act as immediate support, while the lower end of the candle near 25,850 marks a strong structural base, coinciding with the previous week’s low. On the higher side, once Nifty sustains above 26,300, we expect the index to witness broad-based buying momentum and head towards the 26,500–26,700 levels in the near term.

(Spot)

Key Resistance: 26,350, 26,500

Key Support: 26,100, 26,000

Strategy: Buy Nifty Futures on dips around 26,200, with a stop-loss of 26,050, targeting 26,800–26,900.

Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities

Nifty ended the week with a gain of 135 points. On the weekly chart, the index formed a small bullish candle with a lower shadow, indicating buying interest at lower levels. The index also registered a new all-time high of 26,310 in intraday trading after 14 months, but it could not sustain above that level. A decisive close above this point could open the door for further gains towards the 26,500 to 26,700 range.

On the downside, the 26,000 to 25,886 zone (20-day SMA) remains a crucial support band. A sustained move above 26,350 may trigger buying towards 26,500 to 26,700, while a break below 26,000 could lead to selling towards 25,850 to 25,600.

For the week ahead, we expect Nifty to trade within the 26,700 to 25,600 range with a mixed to positive bias. The weekly relative strength index (RSI) remains above its reference line, reinforcing the ongoing positive momentum.

Key Resistance: 26,350, 26,500

Key Support: 26,100, 25,900

Strategy: Buy Nifty Futures around 26,100 with a stop-loss of 26,000, targeting 26,350–26,450.

Anshul Jain, Head of Research at Lakshmishree Investments

On the 75-minute chart, a clean cup-and-handle breakout stands out, carrying a measured target near 26,600, but only if the Nifty 50 holds above 26,275. Until that hurdle is crossed, momentum stays steady but not explosive.

Dips toward the daily bullish fair value gap at 26,144 should attract buyers. That zone aligns with the moving-average cluster on the 75-minute chart, which strengthens its role as a launch point. Across time frames, moving averages remain firmly bullish and support a grind higher as long as key levels hold. If the index stabilizes above 26,275, traders can look for the next leg toward 26,600.

Key Resistance: 26,275, 26,600

Key Support: 26,144, 26,000

Strategy: Buy Nifty Futures on dips around 26,144 with a stop-loss below 26,050 for a target of 26,275–26,325.

Bank Nifty - Outlook and Positioning

Rajesh Bhosale, Technical Analyst at Angel One

On the daily chart, Bank Nifty continues to maintain a higher-top, higher-bottom structure, where every minor dip toward the 20 DEMA has attracted buying interest. However, with momentum oscillators now in overbought territory, the pace of the upmove has slowed. Apart from Wednesday’s strong bullish candle, the recent sessions have been characterised by small-bodied candles and Doji formations, reflecting a short-term breather phase. In such a setup, it is prudent to adopt a buy-on-dip approach rather than chasing strength at elevated zones.

Wednesday’s price action closely resembles a Rising Three continuation pattern, and the upper boundary of this formation around 59,300 now acts as immediate support. Further down, Wednesday’s Open-Low Marubozu low near 58,800 remains a key sacrosanct support zone. On the higher side, the psychological hurdle of 60,000 is expected to cap momentum initially, followed by the reciprocal golden retracement of the July–August decline placed around 60,150, which is seen as the next notable resistance. Traders are advised to monitor these key levels and continue aligning with a buy-on-declines strategy until clear signs of trend exhaustion emerge.

(Spot)

Key Resistance: 60,000, 60,300

Key Support: 59,300, 59,000

Strategy: Buy Bank Nifty Futures on dips around 59,800, with a stop-loss of 59,200, targeting 60,000 / 60,300.

Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities

Bank Nifty ended with a weekly gain of 885 points and formed a bullish candle with a higher high and low structure on the weekly charts, closing above the previous week’s high, which reinforces a positive outlook. Bank Nifty also outperformed Nifty, achieving a new all-time high.

Following the principle of polarity, the previous resistance level at 58,600 has now turned into a key support zone. If the index maintains its position above this level and continues to see follow-through buying, it may lead to further upside.

The chart structure indicates that a decisive move above 60,000 could trigger new buying momentum, aiming for targets between 60,500 and 61,000. Conversely, a break below 59,450 might lead to selling pressure, pushing the index down toward 59,000 to 58,600.

For the week ahead, the index is expected to trade within the range of 58,600 to 61,000, with an overall positive tone. Additionally, the weekly RSI is trending upward and remains above its reference line, further supporting the bullish momentum.

Key Resistance: 59,900, 60,200

Key Support: 59,600, 59,450

Strategy: Buy Bank Nifty Futures around 59,750 with a stop-loss of 59,550, targeting 60,100–60,250.

Anshul Jain, Head of Research at Lakshmishree Investments

Bank Nifty’s structure still points toward a clean test of 60,000 in the week ahead, with a good chance of sustaining above it if momentum holds.

Weekly EMAs are a bit stretched, yet the daily and 75-minute EMAs continue to support the trend and act as a propeller for an extension toward 60,500. The broader setup stays firmly bullish unless key reference points break. Any dip toward the previous all-time high near 59,450 should offer an attractive opportunity to add longs, especially if intraday breadth remains stable.

Key Resistance: 60,000, 60,500

Key Support: 59,450, 59,250

Strategy: Buy Bank Nifty Futures on dips around 59,450, with a stop-loss below 59,250 for a target of 60,500.