The Indian stock market sustained its positive momentum this week, with the benchmark Nifty 50 index trending upwards through most trading sessions. While the index faced some intraday volatility, the overall sentiment remained optimistic, supported by consistent buying interest. The Nifty managed to hold onto its weekly gains, concluding on a steady note, though it narrowly missed testing its all-time high near 26,277, settling instead around the 26,100 mark.
In a contrasting development, the broader markets faced significant headwinds. Both the Midcap and Small Cap indices witnessed sustained selling pressure, leading to persistent declines throughout the week and highlighting a divergence from the large-cap rally.
Market Outlook: A Bullish Signal with a Cautionary Note
According to Mehul Kothari, Deputy Vice President of Technical Research at Anand Rathi, the market sentiment is bullish. He points out that the Nifty 50 index has confirmed a bullish cup-and-handle breakout on its technical charts. Kothari stated that the index is poised for another breakout above the 26,300 level, which could propel it towards a short-term target of 26,500.
However, he added a crucial perspective for investors. "The cup-and-handle pattern is forming on a long-term timeframe," Kothari explained. "Its major impact is likely to unfold over the coming months, potentially in the first half of 2026, which could open the door for significantly higher index levels."
For the immediate future, he anticipates a rally towards 26,500 but warns that this could be the final upward move before a short-term corrective phase. "Traders should keep this in mind," he advised, also expressing concern over the continued underperformance of the Midcap and Small-cap segments. On the downside, Kothari identified 25,700 as the Nifty's immediate support, a breach of which could delay the journey to new lifetime highs.
Bank Nifty: Facing Significant Resistance
Shifting focus to the banking sector, Kothari noted that the Bank Nifty index retreated after hitting a new high near 59,600. He attributed this pullback to strong supply at a key resistance level formed by a long-term rising trendline.
Even if the index manages to climb above 59,600, Kothari believes it will encounter a formidable barrier in the 60,500–61,000 zone, where another major trendline lies. "It will be a tough hurdle for the bulls to surpass 61,000 in the coming weeks," he said, predicting underperformance from the banking index as it approaches this zone. The immediate support for Bank Nifty is placed in the 58,500 – 58,000 range.
Stock Picks for the Upcoming Week
For investors looking for trading opportunities on Monday, Mehul Kothari of Anand Rathi recommended three stocks. Here are his buy and sell suggestions:
- Canara Bank: Sell at around ₹146, with a target price of ₹138 and a stop loss set at ₹152.
- Samman Capital: Buy at around ₹158, with a target price of ₹170 and a stop loss at ₹151.
- Lemon Tree: Buy at ₹155, with a target price of ₹165 and a stop loss at ₹150.
Disclaimer: This article is for educational purposes only. The views and recommendations are those of the individual analyst and not of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions.
