Trade Setup For Nov. 17: Nifty Faces Immediate Resistance At 26,000–26,100

The NSE Nifty 50 found immediate resistance in the 26,000 and 26,100 range, according to Amol Athawale, vice president of technical research at Kotak Securities.

"On the higher side, 26,000 and 26,100 would be the immediate resistance zones for the bulls. A successful breakout above 26,100 could push the market up to 26,300–26,500," Athawale said.

On the weekly chart, the Nifty has formed a strong bull candle with a higher high and a higher low, signalling pullback after two weeks of corrective decline in line with expectations from the key support area of 25,400-25,300, according to Bajaj Broking Research.

"Going ahead, bias continues to remain positive and a follow-through strength above last month high of 26,100 will open upside towards the previous all-time high of 26,277 in the coming week," Bajaj Broking said.

"Failure to move above 26,100 will signal some consolidation in the range of 26,100-25,700 in the coming week after a strong upmove of 700 points in the last five to six sessions," the firm added.

The brokerage found key short-term support at 25,500-25,300 levels, being the confluence of the 50 days extended-moving average, previous major breakout area and key retracement of the previous rally.

For the Bank Nifty Index, the 20-day simple moving average support is placed at 58,000, according to Athawale. "Above this, it could move up to 58,800–59,500. On the other side, below 58,000, it could slip to 57,500–57,200," Athawale said.

On the downside, the lower band of the consolidation range at 57,300–57,100, which coincides with the recent breakout zone and the 20-day EMA, is likely to act as a strong support area, according to Bajaj Broking Research.

"Going ahead we expect the index to break above the upper band of the consolidation range and head towards 59,200 levels in the coming sessions," Bajaj Broking said.

"Among the oscillators, the daily 14 periods relative strenght index has recently generated a buy signal thus supports the overall positive bias in the index," the brokerage added.

The NSE Nifty 50 snapped a two-week losing streak, gaining over 1.5% for the week. Benchmarks outperforming broader market indices. The Nifty index went up 0.12% or 30.90 points to 25,910.05.

The rupee closed 7 paise weaker at 88.74 against the US dollar on Friday. It closed at 88.67 a dollar on Thursday.