Nifty 50 is entering a consolidation phase with the index struggling to sustain a move above 26,200. Technical indicators point to near-term indecision and range-bound trade, even as low volatility and selective sectoral strength keep the broader bias supportive.
ROHAN SHAH TECHNICAL ANALYST, ASIT C. MEHTA INVESTMENT INTERMEDIATES
Where is Nifty headed? Nifty is hovering within a well-defined range of 26,300– 25,700 near its all-time highs. The index is expected to undergo further price- and time-wise consolidation before registering a decisive breakout. In the interim, sector-specific opportunities are expected to play out.
Trading Strategies: Bank Nifty is facing resistance near the upper end of its multi-month rising channel, with momentum indicators indicating overbought conditions. On lower time-frame charts, a potential head-and-shoulders pattern is developing. A decisive break below the neckline could lead to profit-booking. Traders may short Bank Nifty January futures below 59,000 for targets of 58,200–57,800, with a stop-loss above 59,600.
TOP STOCK BETS: Lupin: Buy for a target of Rs 2,300, with stop-loss at Rs 1,975. The stock is trading firmly above the 200-EMA on weekly timeframe, confirming long term strength. On daily chart, it has registered a decisive breakout from a VCP setup, indicating a bullish bias.
Varun Beverages: Buy for a target of Rs 540, with stop-loss at Rs 450. Stock is showing signs of a potential trend resumption after a prolonged corrective phase. It is nearing a breakout from an ongoing symmetrical triangle pattern. MACD line is gradually moving higher and converging with its signal line, reinforcing the bullish bias.
NILESH JAIN HEAD OF DERIVATIVES AND TECHNICAL RESEARCH, CENTRUM BROKING
Trading Strategies: Ahead of the monthly F&O expiry in the coming week, Nifty may witness short covering. Accordingly, a Bull Call Spread in the December series is recommended. The strategy involves buying one lot of 26,000 Calls at a premium of Rs 97 and simultaneously selling one lot of 26,100 Calls at a premium of Rs 47, resulting in a net debit of Rs 50. A stop-loss can be placed at Rs 20, while the spread offers upside targets of Rs 75 and Rs 90. The break-even level for the strategy is placed at 26,050.
TOP STOCK BETS: APL Apollo Tubes: Buy at CMP of Rs 1,886, with a stop-loss at Rs 1,835 and a target of Rs 2,001. The stock remains in a strong uptrend and has extended its positive momentum following a breakout from a symmetrical triangle pattern around the Rs 1,800 level. Momentum indicators and oscillators on both daily and weekly timeframes continue to remain firmly in buy mode.
Titan: Buy at CMP of Rs 3,992, with a stop-loss at Rs 3,830 and a target of Rs 4,315. The stock continues to form a higher-top and higher-bottom structure and has scaled fresh record highs. Recent price action has been accompanied by higher volumes, while fresh long positions in the derivatives segment further reinforce the bullish bias.
RAJESH PALVIYA HEAD OF TECHNICAL AND DERIVATIVES RESEARCH, AXIS SECURITIES
Trading Strategies: The recommended Nifty options strategy for the Dec 30 expiry is a Put Spread, suitable for a moderately bearish outlook. The strategy involves buying one lot of 26,100-strike Put option at a premium of `80–90 and simultaneously selling one lot of 25,900-strike Put option at a premium of Rs 16–20. This strategy limits both risk and reward, creating a defined range of outcomes. The break-even point is at 26,026, with a maximum potential loss of Rs 5,550 and a maximum profit of Rs 9,450.
TOP STOCK BETS: RVNL: Buy at CMP of Rs 388, with a stop-loss at Rs 370 and a target of Rs 415–425. On weekly chart, the stock is showing early signs of a trend reversal after decisively breaking above the medium-term down-sloping trendline near Rs 350 on a closing basis. The breakout is supported by a significant surge in volumes, signalling increased market participation. Momentum is improving, with daily RSI moving out of the neutral zone and rising above the 60 level, indicating strengthening price action and increasing bullish momentum. Investors may consider buying and accumulating the stock for the medium term. The expected upside is Rs 425–460, while the downside support zone is at Rs 350–320.
Dalmia Bharat: Buy at CMP of Rs 2,160, with a stop-loss at Rs 2,060 and a target of Rs 2,300–2,350. On weekly chart, stock has decisively broken above the down-sloping trendline at Rs 2,095 on a closing basis, signalling a potential trend reversal. Momentum indicators support the move, with weekly RSI registering a positive crossover above its reference line, thereby generating a fresh buy signal.