Trade Setup For Nov 21: Nifty Support Moves To 26,000 As Index Nears All-Time High

The NSE Nifty 50 Index sees support at the 25,900–26,000 zone, according to analysts from Bajaj Broking Research after the index ended above the 26,000 mark on Thursday.

"On the downside, support has shifted higher to the 25,900–26,000 zone, which is likely to act as a strong demand area and cushion any short-term pullbacks, thereby preserving the overall bullish structure," Bajaj Broking said.

The psychological resistance for the index is at 26,277, according to Osho Krishan, chief manager of technical and derivative research at Angel One.

"On the higher end, with the recent closure, the lifetime high of 26,277 is likely to act as psychological resistance, and a breakthrough could pave the way for 26,500 in the near future," Krishnan said.

On the daily chart, the index formed a solid bullish candle with wicks on both sides, indicating that while volatility persists, the underlying trend remains firmly positive, according to Bajaj Broking Research.

Krishnan recommended a 'buy on dips' strategy to investors while warning them to be cautious about which stocks they select while encouraging them to continue to be bullish on markets.

"As we progress, the prevailing sentiment remains strong, supporting the strategy of purchasing during market dips, which has historically demonstrated its effectiveness," he said.

"Furthermore, given the current sectoral rotation, it is essential to exercise caution in stock selection while maintaining a bullish outlook on the markets," Krishnan added.

The Bank Nifty sees resistance at 59,600- 59,800 according to Osho Krishnan. The Bank Nifty index is forming a series of higher highs and higher lows, signalling a well-established uptrend according to Bajaj Broking Research.

The recent candles show steady buying with shallow intraday dips being absorbed quickly, indicating strong underlying demand, the brokerage said.

Going ahead, the firm sees the trend as remaining firmly positive with the index poised to test the 59,800–60,000 zone in the short term. 

Any minor pullback is likely to find support around the 58,800–58,600 band, which now acts as an immediate demand zone, the company stated.

"Unless this support breaks decisively, the overall structure continues to favour further upside," Bajaj Broking Research said.