The Indian equity markets have kicked off the calendar year 2026 with remarkable strength and optimism, with key benchmark indices soaring to unprecedented levels. The trading week witnessed broad-based buying, setting a confident tone for the new year.
Benchmarks Scale New Heights on Robust Participation
The Nifty 50 index surged to a fresh all-time high of 26,340 during intraday trade before closing at a record 26,328. This bullish momentum was fueled by widespread participation, particularly in banking, automobile, metals, and public sector undertaking (PSU) stocks. While fast-moving consumer goods (FMCG) stocks faced some selective selling pressure due to sectoral headwinds, the overall market sentiment remained firmly positive. Analysts attribute this rally to sustained domestic liquidity, which effectively absorbed any intermittent profit-taking, and growing optimism ahead of the upcoming third-quarter (Q3) corporate earnings season.
Expert Technical Analysis and Forecast
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, provided a detailed technical perspective on the market's surge. She emphasized that the mood has significantly improved after the Nifty 50 decisively broke above the crucial 26,200 resistance level.
On the Nifty 50: Parekh noted the formation of a strong bullish candle on the daily chart. She anticipates further upward movement, with the index now heading towards the 26,550-26,600 range. She identified immediate support at 26,200 and crucial support near the 50-day exponential moving average (DEMA) at the 25,900 zone, which is vital for maintaining the bullish bias.
On the Bank Nifty: The banking index also staged a powerful breakout, surpassing the previous resistance hurdle of 60,000 to enter new territory. Parekh stated the trend is now strong, with expected targets at 61,400 and 63,000 levels. The key support for Bank Nifty is positioned near its 50-DEMA at 58,700. She expects a daily trading range between 59,800 and 60,700.
Intraday Stock Picks from the Expert
For traders looking at opportunities in this bullish setup, Vaishali Parekh recommended three stocks for intraday trading on the basis of technical charts:
- Roto Pumps: Buy at ₹69, with a target price of ₹75 and a stop loss set at ₹66. The stock is trading above support and has formed a higher bottom pattern.
- KPIT Technologies: Buy at ₹1168, with a target of ₹1200 and a stop loss at ₹1155. The stock has consolidated around ₹1150 and shows signs of a potential trend reversal.
- Ambuja Cements: Buy at ₹560, aiming for a target of ₹580, with a stop loss at ₹550. The chart structure appears positive, indicating scope for a substantial upside move.
The week's performance, characterized by a healthy rotational rally at elevated levels, has laid a constructive foundation for 2026. Investor confidence continues to be underpinned by India's robust structural growth story. However, it is crucial to remember that market recommendations are for educational purposes, and investors should consult certified experts before making any financial decisions.
