A break above 26,300 key for next Nifty rally: Analysts

Nifty has stabilised after rebounding from the 25,700 zone, with the broader chart structure of higher tops and higher bottoms still intact. However, the index is entering a consolidation phase near recent highs, with buying emerging on dips but resistance capping upside. The 26,050–26,300 band remains a key hurdle. A decisive move above this zone could open the door to a rally towards 26,350–26,500.

NAGARAJ SHETTI
SENIOR TECHNICAL RESEARCH ANALYST, HDFC SECURITIES

Where is the Nifty headed?
Nifty witnessed a sharp bounce back in the last two sessions and formed a crucial bottom reversal around 25,700 levels. The larger degree bullish pattern, like higher tops and bottoms, is intact and the recent swing low of 25,693 could now be considered as a new higher bottom. Market action indicates a consolidation or minor downward correction in the market from new highs and the emergence of buying from near immediate weekly supports, like the ascending trend line and 10-week EMA. A sustainable move above 26,000 levels could pull Nifty towards the new all-time high of 26,350-26,400 levels in the near term. Immediate support is placed at 25,900.

Trading Strategy: One may look to buy Nifty December futures around 26,150 or may consider buying Nifty 26,300 CE of Dec 30 expiry around `130 for a potential upside in the near term. Upside targets to be watched for Nifty are around 26,350-26,400. Longs to be placed with stop loss of 25,900.

TOP STOCK BETS:
NMDC: Buy; CMP Rs 78, Stop Loss Rs 75, Target Rs 83

The stock has witnessed a sharp upmove on Friday and is now placed on the verge of a decisive breakout of a larger consolidation pattern as per the daily and weekly time frame charts. Volume has expanded during the upside breakout in the stock price, and the daily RSI shows a positive indication.

Ashok Leyland: Buy; CMP Rs 163, Stop Loss Rs 158, Target Rs 175 A bullish chart pattern, like higher tops and bottoms, observed as per the daily timeframe chart. The immediate support of 10-day EMA has acted as a base for the short term. Volume pattern and daily RSI show positive indication for the stock price ahead.

SACCHITANAND UTTEKAR
VP- RESEARCH (TECHNICAL & DERIVATIVES), TRADEBULLS SECS

Where is Nifty headed?
Despite bouts of intra-week volatility, Nifty managed to hold above its 5-WEMA, maintaining a weekly close above 26,000. The repeated formation of narrow-bodied candles with long wicks on weekly chart signals compression—typically a precursor to a sharp directional move. A sustained move above 26,050 remains the key trigger for a bullish thrust. Once crossed, the index is well-positioned to head toward the 26,330–26,500 zone. Until this breakout is confirmed, an opposing move cannot be ruled out. On the downside, immediate support is at 25,800. A break, and sustained trade below this level may weaken the broader trend and open the gates for a slide toward 25,440. The bias continues to lean slightly in favour of a breakout toward 26,330, making it prudent to maintain or initiate long positions only above 26,050.

Trading Strategy: Nifty Options (Dec 16 Expiry) Buy Nifty 26,000 CE (Naked Call) Entry: Add upto Rs 88, Stop Loss: Rs 54, Target: Rs 225

The structure favours a directional upside play as long as Nifty sustains above the key breakout zone. Risk-reward remains attractive with limited downside and strong payoff potential if momentum accelerates toward the higher resistance band.

TOP STOCK BETS:
SRF: Buy; CMP: Rs 3,023, Stop Loss: Rs 2,970, Target: Rs 3,180
SRF has confirmed a breakout from an Inverse Head & Shoulder reversal pattern on daily chart, indicating a favourable trend shift and rising momentum. Sustained price action above the Rs 3,200 option-writing zone has triggered a fresh short squeeze, while the ADX turning above 25 signals a strengthening trend.

UltraTech Cement: Buy; CMP: Rs 11,723, Stop Loss: Rs 11,565, Target: Rs 12,130
A bullish hammer on the weekly chart suggests the corrective phase has ended. The stock has reclaimed its 50-WEMA, confirming renewed buying interest. On the daily timeframe, a breakout above the 20-DEMA indicates the start of a fresh bullish impulse. The reversal appears sustainable, with potential strength extending over the next couple of weeks.

MEHUL KOTHARI
DVP – TECHNICAL RESEARCH, ANAND RATHI SHARES AND STOCK BROKERS

Where is Nifty headed this week?
After dipping to the projected 25,700 support zone on the rising trendline, Nifty witnessed a healthy recovery, keeping the ongoing consolidation intact. The structure continues to build the handle of the larger multi-year cup-and-handle formation. A key technical factor this week is the falling trendline resistance near 26,100. A move above this is crucial for immediate upside. 26,300 remains the decisive breakout level, and a sustained close above 26,300–26,350 can open the gates for 26,600 in the near term. Meanwhile, Midcap 100, Smallcap 100, and Smallcap 250 have formed Hammer-type reversal patterns, confirming renewed buying interest. As long as Nifty holds 25,600–25,700 on a weekly close, the primary uptrend remains firmly intact.

Trading Strategy: For a moderately bullish-torange-bound outlook, traders may consider a Call Spread for the weekly expiry. • Buy Nifty 26,200 Call • Sell Nifty 26,500 Call This defines both risk and reward while taking advantage of expected upward movement only above the falling trendline breakout. The spread benefits if Nifty moves toward 26,300–26,500, aligning with the key resistance levels highlighted. Risk remains limited to the net premium outlay, while potential reward increases once the index sustains above 26,100.

TOP STOCK BETS:

Fortis Healthcare: Buy; CMP: Rs 870, Stop Loss: Rs 845, Target: Rs 920
Fortis has taken strong support at 200-DEMA, indicating a high-probability pullback. Offer a favourable reward-to-risk setup.

Eternal: Buy; CMP: Rs 295, Stop Loss: Rs 280, Target: Rs 320
Eternal has reversed from the 200-DEMA, signalling momentum returning after a corrective phase. The structure supports a move towards Rs 320.