Trading Plan: Will Nifty 50 hit an all-time high, Bank Nifty march toward 60,000?

Nifty Trading Plan for November 27

The Nifty 50 and Bank Nifty had a strong start to the December series after recouping all previous three days’ losses in a single session. Given the strong technical and momentum indicators, the Nifty 50 is likely to hit a record high and the 26,350 zone, provided it surpasses and sustains above the October high (26,247), while support is placed at 26,000. Meanwhile, the Bank Nifty is expected to march toward the psychological 60,000 zone in the short term; however, support is placed at 59,000, experts said.

On November 26, the Nifty 50 spiked 321 points (1.24 percent) to 26,205, while the Bank Nifty surged 708 points (1.2 percent) to 59,528. The market breadth was dominated by bulls with 2,130 shares gaining against 712 shares that were under pressure on the NSE.

Nifty Outlook and Strategy

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

On Wednesday, the benchmark index Nifty found strong support near its 20-day EMA and staged a sharp upside rally, reversing the recent bearish tone. The bullish momentum was so powerful that the day’s candle completely engulfed the bodies of the previous three bearish sessions, signalling a decisive shift in sentiment and renewed buying interest. This price action suggests that bulls have regained control after a phase of uncertainty.

Most notably, the broader market also joined the rally. Indices such as the Nifty Midcap 100 and Nifty Smallcap 100, which had been underperforming the frontline index for the past few sessions, witnessed a strong rebound on Wednesday. This synchronized move across large-cap and broader market segments indicates improving risk appetite and a potential short-term trend reversal. However, in the small-cap space, it remains crucial to watch how the follow-up moves unfold, as sustainability will determine whether this rebound translates into a meaningful recovery.

Coming back to Nifty, all key technical parameters are now signalling strong bullish momentum. The daily RSI surged above the 60 mark and is in a rising mode, reflecting renewed strength. The MACD histogram has turned positive again, while the fast stochastic has crossed above its slow stochastic line, further confirming the bullish undertone.

Considering these technical factors, the index is likely to continue its northward journey and test 26,350, followed by 26,500 in the short term. On the downside, the support zone has shifted higher to 26,000–25,950, which will act as a critical cushion for any pullback.

Key Resistance: 26,350, 26,500

Key Support: 26,000, 25,950

Strategy: Buy Nifty Futures at CMP around 26,330–26,390, with a stop-loss of 26,230, targeting 26,600.

Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking

The Nifty ended its three-day losing streak, forming a bullish engulfing candle and closing above the 26,200 level. It found strong support at the 21-DMA near 25,850, from which it rebounded sharply, making this zone an immediate support level. On the upside, the next key resistance is at 25,247, the recent swing high. A decisive move above this level could pave the way toward 26,350, followed by 26,500 in the near term.

Rollover data stood at 68.77%, below the three-month average of 80.67%, signalling unwinding of aggressive short positions. Momentum indicators and oscillators remain in buy mode on the weekly chart, reinforcing the bullish setup. Overall, the trend remains positive, favouring a buy-on-dips approach.

Adding to the optimism, India VIX has eased to around 12, suggesting low market volatility and boosting confidence among bulls.

(Spot levels)
Key Resistance: 26,247, 26,350

Key Support: 26,100, 25,950

Strategy: Buy Nifty 26,250 strike Call Option in the range of Rs 100–120, with a stop-loss of Rs 65, targeting Rs 180/250.

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty 50 index bounced back sharply, managing to log its second-highest close on Wednesday, a sign that the trend is turning firmly positive. The recent dip in sentiment seems to have been shaken off, and the RSI has also reversed its earlier negative divergence on the daily chart, adding weight to the recovery.

Interestingly, this rebound started right from the 38.20% Fibonacci retracement level, making the reversal even more meaningful. In the near term, the index is likely to stay on a positive path, with room to move towards 26,426/26,580. On the downside, 26,070 is expected to act as a key support level.

Key Resistance: 26,426, 26,580

Key Support: 26,070

Strategy: Buy Nifty 26,400 strike Call Option of December 2 at Rs 61.10, with a stop-loss of Rs 34, targeting Rs 100.

Bank Nifty - Outlook and Positioning

Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities

The banking benchmark index, Bank Nifty, continued its northward journey on Wednesday and marked a fresh all-time high, reinforcing its leadership in the market. On the daily chart, the index formed a sizeable bullish candle, signalling strong buying interest and momentum. Adding to this strength, the ratio chart of Bank Nifty versus Nifty is at an 83-day high and continues to form higher tops and higher bottoms, clearly indicating sustained outperformance of the banking space compared to the broader market.

As the index trades at record levels, all key moving averages and momentum indicators are aligned in favour of the bulls, suggesting that the underlying trend remains robust. The technical setup points to further upside potential in the short term. We expect the index to continue its northward journey and test 60,100, followed by 60,600 in the coming sessions. On the downside, the zone of 59,000–58,900 will act as immediate support, providing a cushion against any short-lived pullbacks.

Key Resistance: 60,100, 60,600

Key Support: 59,000, 58,900

Strategy: Buy Bank Nifty Futures at around 59,700–59,850, with a stop-loss of 59,400, targeting 60,800.

Nilesh Jain, Head – Technical and Derivatives Research Analyst (Equity Research) at Centrum Broking

Bank Nifty maintained its higher-top, higher-bottom structure and surged to new all-time highs. It finished above the 59,000 level, which now acts as an immediate psychological support, with the next support at 58,650. The overall trend remains strongly bullish, with scope for a move toward the 60,000 mark in the near term.

Momentum indicators and oscillators on both the daily and weekly charts continue to signal strength, reinforcing the positive bias.

(Spot levels)
Key Resistance: 59,800, 60,000

Key Support: 59,100, 58,650

Strategy: Buy Bank Nifty Futures in the range of 59,700–59,800, with a stop-loss of 59,300, targeting 60,200/60,500.

Rupak De, Senior Technical Analyst at LKP Securities

Another consolidation breakout has led to yet another all-time high, as the Bank Nifty continues to register new lifetime highs on the first day of the December series. The trend remains strong, with moving averages rising and pointing to strong positive sentiment.

The RSI has re-entered a bullish crossover after reversing from a negative divergence. The index looks like a buy-on-dips candidate, with the potential to move towards 60,000–60,500. On the lower end, 59,000 is likely to act as short-term support.

Key Resistance: 60,060, 60,440

Key Support: 59,200, 59,000

Strategy: Buy Bank Nifty 60,000 strike Call Option of December expiry at Rs 700, with a stop-loss of Rs 600, targeting Rs 860.

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.