The Indian stock market has soared to unprecedented levels, with the Nifty 50 index achieving a historic peak of 26,310.45 points on November 27. This remarkable rally stems from multiple positive factors including anticipated interest rate reductions by both the US Federal Reserve and Reserve Bank of India in December, optimistic signals about a potential resolution to the Russia-Ukraine conflict, a weakening US dollar, and declining crude oil prices.
Market Momentum and Expert Outlook
Despite reaching this milestone, the Nifty 50 concluded the trading session relatively unchanged as investors engaged in profit-taking at elevated levels. Interestingly, the mid-cap and small-cap segments have shown limited participation in this upward movement. Market specialists suggest that for the rally to extend further, the broader market needs to demonstrate recovery while global indicators remain supportive.
Ajit Mishra, Senior Vice President of Research at Religare Broking, maintains a positive outlook on market direction. He anticipates the Nifty 50 could progressively advance toward the 26,500 mark in the coming sessions. "On the downside, immediate support lies in the 26,100–26,050 region, with major support near 25,800. Traders should maintain a buy-on-dips approach, focusing on sectoral rotation and strong stock-specific setups," Mishra advised.
Three Promising Stock Picks for Short-Term Gains
Based on technical analysis and favorable chart patterns, Mishra has identified three stocks that present attractive short-term trading opportunities for the next one to two weeks.
Glenmark Pharmaceuticals: Technical Recovery Signal
Glenmark Pharmaceuticals shares have established a solid foundation after retreating from their all-time peak. The stock stabilized at a crucial support cluster that includes the previous resistance neckline, the 50% Fibonacci retracement level, and the 200-day exponential moving average. This convergence of technical indicators halted the downward trend and facilitated the formation of a strong base.
The stock has been trading within a narrow range, effectively absorbing supply pressure and indicating accumulation activity that could lead to trend resumption. "The current price setup suggests a likely recovery and continuation of the broader uptrend. With limited downside and a favourable risk–reward structure, traders may consider accumulating the stock," Mishra stated. The recommended strategy involves buying with a target price of ₹2,100 and a stop loss at ₹1,870.
Samvardhana Motherson International: Breakout Confirmation
Samvardhana Motherson International has demonstrated consistent upward movement, forming a base-on-base structure while consistently finding support along its rising trendline. The stock recently achieved a significant breakout from an elevated base, decisively surpassing its multi-month resistance zone.
Throughout its recovery journey from the 70 levels, the price movement has been supported by substantial trading volumes, reinforcing the underlying strength in the counter. "With this fresh breakout and momentum aligning positively, the stock appears well-positioned for further upside. Traders may consider accumulating the stock with a stop loss at ₹111, aiming for a target of ₹126," Mishra recommended.
United Spirits: Momentum Resumption
United Spirits has experienced a healthy recovery following an extended corrective phase. After establishing a base near a key support zone and reclaiming major moving averages, the stock is now trading firmly above the consolidation breakout level and the 20-day exponential moving average.
The recent price-volume behavior indicates potential for additional upward movement, with the stock likely to advance toward ₹1,550 in the near term. "Traders may consider participating in the ongoing momentum for favourable gains," Mishra suggested. The trading strategy involves setting a stop loss at ₹1,390 while targeting ₹1,550.
Market Context and Investment Approach
The current market environment presents both opportunities and challenges for investors. While the benchmark indices have reached record levels, the absence of broad-based participation suggests selective approach to stock picking remains crucial. The identified stocks represent sectors showing technical strength and momentum alignment.
Investors should note that these recommendations are specifically tailored for short-term trading horizons of one to two weeks. The technical analysis focuses on price patterns, support-resistance levels, and volume behavior to identify potential entry and exit points.
Disclaimer: This analysis is intended for educational purposes exclusively. The views and recommendations expressed belong to individual analysts or broking companies and not to the publication. Investors should consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
