Market Rally Fuels Optimism for New Highs
Indian stock market benchmarks, the Sensex and Nifty 50, registered an impressive gain of 1.6 per cent for the trading week that concluded on November 14. This bullish momentum was primarily driven by rising optimism surrounding a potential India-US trade agreement, coupled with better-than-anticipated Q2 corporate results from Indian companies.
The Nifty 50 is now approaching the significant psychological level of 26,000. Market analysts believe that positive global catalysts could propel the index to record highs, with domestic growth-inflation dynamics continuing to provide a solid foundation. From a technical perspective, experts anticipate the index to maintain its positive trajectory, with a potential sight set on levels near 26,500.
Technical Outlook: Nifty's Path to Uncharted Territory
Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, provided a detailed technical analysis. He highlighted that in the previous week, the Nifty 50 successfully respected a key support zone around 25,300. This level is particularly significant as it aligns with the 50 per cent Fibonacci retracement of the index's prior upward rally.
Patel stated that the overall bullish view remains intact. He noted that the accumulation of index ETFs near the 25,300 level proved to be a timely move, as the Nifty now closes in on the 26,000 mark and the crucial barrier at 26,277. The price behaviour suggests the index is well-positioned to surpass both these levels in the coming week.
"A sustained move above 26,277 could launch the Nifty into uncharted territory, setting the stage for fresh all-time highs near 26,400," Patel explained. He also cautioned that a minor pullback is possible after the recent upward movement. In such a scenario, the support at 25,700 becomes critical for the week ahead. A breakdown below this level might trigger a phase of short-term profit-taking.
Expert Stock Picks for the Short Term
Jigar Patel has recommended three stocks for traders to consider for a holding period of one to two weeks, providing specific entry zones, targets, and stop-loss levels.
Fertilizers and Chemicals Travancore (FACT)
The previous closing price for FACT was ₹914.55. Patel advises buying in the range of ₹918 to ₹910, with a target price of ₹1,005 and a strict stop loss set at ₹869 on a daily closing basis. The technical rationale is that the stock has formed multiple bottoms near its 200-day Simple Moving Average (SMA), indicating robust demand and a solid support base. This is further reinforced by a bullish divergence on the MACD indicator, signalling a potential shift from consolidation to an upward trend.
Dr. Lal Path Labs
With a previous close of ₹3,153.20, this stock presents a buying opportunity in the ₹3,160 to ₹3,130 range. The target price is ₹3,460, and the stop loss is ₹2,985. Patel points out that Dr. Lal Path Labs has established multiple bottoms near its 200-day Exponential Moving Average (EMA), highlighting strong support. A bullish divergence on the MACD also suggests a high probability of an upside reversal.
DOMS Industries
DOMS Industries closed at ₹2,621.70. The recommended buying range is ₹2,630 to ₹2,600, with a target of ₹2,850 and a stop loss at ₹2,497. According to the expert, the stock has built a powerful base through sustained consolidation in the ₹2,500–2,600 zone. A decisive breakout above ₹2,600 in the previous session, validated by a bullish MACD crossover, indicates renewed buying interest and strengthening momentum.
Disclaimer: This analysis is intended for educational purposes only. The views and recommendations are those of the individual expert and not of Mint. Investors are strongly advised to consult with certified experts before making any investment decisions, as market conditions are subject to rapid change and individual circumstances may vary.
