Trading Plan: Can Nifty 50 sustain above 26,100, Bank Nifty hold Thursday’s low amid possible consolidation?

Nifty Trading Plan for November 21

The Nifty 50 inched closer to the record-high zone after breaking out above the 26,100 hurdle. Hence, overall, the trend remains in favour of the bulls, who can drive Nifty gradually toward 26,300 (near the record high) and 26,500. However, until it surpasses the record high, consolidation may be seen with support at the 26,100–26,000 zone. Meanwhile, the Bank Nifty also showed strength and remained in uncharted territory, but the Spinning Top–type pattern formation suggests some profit booking, with support at 59,100-59,000 (Thursday's low and psychological level). On the higher side, 59,500 is the level to watch, experts said.

On November 20, the Nifty 50 spiked 140 points (0.54 percent) to 26,192, while the Bank Nifty rose 132 points to 59,348, despite weakness in market breadth. About 1,582 shares were under pressure against 1,247 shares that advanced on the NSE.

Nifty Outlook and Strategy

Dhupesh Dhameja, Derivative Research Analyst at Samco Securities

Nifty delivered a decisive bullish gap breakout from its four-week consolidation phase, signalling renewed strength and sustained buying interest. The index continues to hold a higher-low formation, while the 26,000 psychological level has now evolved into a firm demand zone, reinforcing the broader uptrend. With the index trading comfortably above its 10-DEMA and 20-DEMA, the technical structure remains firmly constructive, and dips are consistently being absorbed. A breakout above 26,270 could trigger the next upward leg.

Derivatives data also supports the bullish stance, with strong Put writing and Call shifts reflecting continued optimism and momentum-driven upside.

Key Resistance: 26,270, 26,380, 26,500

Key Support: 26,100, 26,000, 25,900

Strategy: Traders may consider the Bull Put Spread strategy for the November 25 expiry by selling one lot of 26,500 PE at Rs 292 and buying one lot of 26,250 PE at Rs 124. This setup is designed to capitalize on potential upside momentum.

Stop-Loss: Hold the strategy until expiry, with the maximum Mark-to-Market (MTM) loss capped at Rs 6,101.

Target: Hold the strategy until expiry to achieve a maximum profit of Rs 12,650, or consider booking profits once the MTM gains exceed Rs 10,065.

Jay Mehta, Technical Research at JM Financial Services

Nifty has decisively broken above its prior swing high of 26,100 in the latest session, registering a fresh 52-week high, powered by new all-time highs in banking and financial indices. Mainline heavyweights are displaying strong momentum. Daily and weekly momentum indicators remain firmly bullish and are rising, reinforcing a robust positive outlook.

The index trades comfortably above all key EMAs with upward slopes, signalling sustained strength. It is now just points away from its all-time high, which should offer minimal resistance. A sustained move above it opens the path to 26,500 and 26,800 in the near term.

Key Resistance: 26,280, 26,500, 26,800

Key Support: 26,100, 26,000, 25,800

Strategy: Buy Nifty Futures at CMP and add on dips near 26,000–26,050, with a stop-loss at 25,800, targeting 26,500, 26,800, and higher.

Sumeet Bagadia, Executive Director at Choice Broking

With a breakout opening above the resistance zone, Nifty formed a bullish candle on the daily chart, indicating strong underlying sentiment despite minor intraday pullbacks.

The index is now hovering near the 26,100–26,200 zone, close to its historical peak, suggesting continued bullish intent. Going ahead, immediate resistance lies at 26,250–26,300, and a sustained move above this range could pave the way for a rally towards 26,500. On the downside, support is placed at 26,000 and 25,900. As long as Nifty sustains above 26,000, a buy-on-dips approach remains favourable, with traders advised to maintain strict stop-losses until a clear breakout or reversal emerges.

Key Resistance: 26,400, 26,500

Key Support: 25,900, 26,000

Strategy: Buy Nifty Futures on dips near the 26,100 level for a target of 26,400–26,500, with a stop-loss of 25,900 on a closing basis.

Bank Nifty - Outlook and Positioning

Jay Mehta, Technical Research at JM Financial Services

Bank Nifty this week surpassed its October 23 swing high of 58,577 and continues to exhibit strong momentum after breaking out from a bullish flag-and-pole pattern. It maintains a relatively stronger structure than Nifty. Daily and weekly momentum indicators are bullish and trending higher, supporting a solid positive view. The index trades above all key EMAs with rising slopes.

The only short-term concern is the latest session’s weak candle (spinning top) formed at the upper Bollinger Band, suggesting possible small profit-taking if the index slips below 59,100.

Key Resistance: 59,500, 59,800

Key Support: 59,000, 58,700, 58,500

Strategy: Buy Bank Nifty Futures on dips around 59,100–59,000 and 58,500, with a stop-loss at 58,200, targeting 59,500 and 59,800.

Dhupesh Dhameja, Derivative Research Analyst at Samco Securities

Nifty Bank pushed further into uncharted territory, backed by relentless buying and a well-defined higher-low structure. The 59,000–58,500 region has now turned into a powerful demand base, signalling strong hands supporting the trend. With the index holding comfortably above its 10-DEMA and 20-DEMA, every intraday dip is being met with fresh accumulation. A breakout above 59,500 could unlock another sharp leg higher.

Derivatives action echoes this optimism, with aggressive Put additions and Call writers shifting away from spot levels—indicating traders are preparing for continued momentum and higher targets ahead.

Key Resistance: 59,500, 59,800, 60,000

Key Support: 59,000, 58,800, 58,500

Strategy: Traders may consider the Bull Put Spread strategy for the November 25 expiry by selling one lot of 59,900 PE at Rs 596 and buying one lot of 59,500 PE at Rs 332. This setup is designed to capitalize on potential upside momentum.

Stop-Loss: Hold the strategy until expiry, with the maximum Mark-to-Market (MTM) loss capped at Rs 4,772.

Target: Hold the strategy until expiry to achieve a maximum profit of Rs 10,065, or consider booking profits once the MTM gains exceed Rs 9,228.

Sumeet Bagadia, Executive Director at Choice Broking

On the daily chart, Bank Nifty formed a Doji-type candle, indicating indecision but with a bullish bias, as the close remained near its record high despite intraday pullbacks.

The index is hovering near the 59,300–59,500 zone, close to its historical peak, reflecting continued bullish sentiment. Immediate resistance is placed at 59,500, and a sustained move above this level may open the doors for a rally towards 59,800–60,000. On the downside, key support lies at 59,100 and 58,900. As long as the index holds above 58,900, a buy-on-dips strategy remains appropriate, with traders advised to maintain strict stop-losses until a decisive breakout or reversal unfolds.

Key Resistance: 59,800, 60,000

Key Support: 58,900, 59,100

Strategy: Buy Bank Nifty Futures on dips near the 59,100 level for a target of 59,800–60,000 levels, with a stop-loss of 58,900 on a closing basis.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.