Trade Setup For Nov 20: Nifty Bulls Eye 26,277 All-Time High After Strong Rebound
The index is now trading near last month’s high of 26,104, which is identified as a critical resistance level.
Nifty bulls are eyeing the all-time high of 26,277 in the near-future, after the benchmark index recovered on Wednesday following a one-day blip.
The Nifty reclaimed the crucial 26,000 mark and this indicates a continuation of positive momentum, according to Bajaj Broking Research. The index is now trading near last month’s high of 26,104, which is identified as a critical resistance level.
Shrikant Chouhan, head of equity research at Kotak Securities Ltd., suggests that 26,100 would be the immediate resistance zone. A breakout above this level could push the market towards 26,200 to 26,250. Bajaj Broking Research adds that a sustained move above 26,104 could pave the way for an advance toward the all-time high of 26,277.
For day traders, key support zones are placed at 26,000 and 25,920, according to Kotak Securities. Rupak De, senior technical analyst at LKP Securities, places immediate support at 25,850. Bajaj Broking Research maintains strong support at 25,700.
Both Bajaj Broking and LKP Securities noted strong technical signals, with the daily 14-period RSI in an uptrend and in a bullish crossover above 60, reinforcing the positive bias.
The Bank Nifty surged to a fresh all-time high of 59,264 during the session. The index formed a bullish candle with a higher high, extending its upward move following a strong breakout from its four-week consolidation range of 57,300–58,600.
Bajaj Broking Research expects the index to retain its positive momentum and move towards the 59,800 level, based on the measuring implication of the recent range breakout. The 58,500 to 58,200 zone is likely to act as a crucial support area, with the previous resistance now expected to serve as support according to Bajaj Broking.
Market Recap
The Nifty 50 closed up 142.60 points or 0.55% higher at 26,052.65, while the Sensex advanced 513.45 points or 0.61% to 85,186.47. The Nifty IT index led the sectoral gains, surging 2.97%.
Sectorally, Nifty IT rose 2.97% and Nifty PSU Banks close 1.16% higher and were the top gainers. In the broader markets, the Midcap index inched up 0.2%, but the Small-cap index declined by 0.4%.
Currency Check
Rupee closed two paise stronger at 88.59 against the US Dollar. It closed at 88.61 against the dollar on Tuesday.
