Talking to ET Now, Vinay Rajani from HDFC Securities mentioned the pullback lacked conviction. “Yesterday Nifty hit an all-time excessive at 26,330 odd ranges however didn’t maintain at larger ranges and in reality has come down and momentum is clearly missing,” he famous. In line with him, the core concern is the absence of participation from the midcap and smallcap segments, which has develop into a “weak hyperlink” even because the frontline index climbs.
Rajani highlighted that world sentiment has been a serious driver of the latest transfer. “Simply due to the worldwide cues we’re rising, however as we will see at the moment, yesterday we noticed US market closed in a crimson and at the moment Asian markets have additionally are available crimson, so we’re correcting with them,” he mentioned, including that India stays “one of many underperforming on this whole 2025.”
Regardless of the present strain, Rajani believes the Nifty continues to be holding onto a constructive pattern. He pointed to the 20-day exponential transferring common as an important space. “There’s a robust assist between 25,970 to 26,050… that low is round 25,842, in order that must be the cease loss in buying and selling lengthy place,” he mentioned. For merchants, he maintained that “26,000, 26,050 is a robust assist… and any lengthy place in Nifty ought to have a cease lack of 25,840.”
Rajani added that whereas sentiment is mushy, the index is “down, however nonetheless not out as a result of positional pattern continues to be bullish.” Nonetheless, he suggested avoiding midcaps and smallcaps for now, given the shortage of momentum and problem in producing alpha in these pockets.
Inventory Concepts: One Lengthy, One Brief
With the market providing a light pullback, ET Now requested Rajani about alternatives price contemplating. He reiterated his choice for PSU banks. “Canara Financial institution is likely one of the inventory which we like technically, positioned above all transferring averages,” he mentioned, including that indicators stay robust. He really helpful a protracted commerce round ₹153.5, with a cease loss at ₹150 and a goal of ₹158.50.
On the quick facet, Rajani highlighted weak spot in aviation. “IndiGo Airways. The upwards sloping pattern line has been violated and appears weak,” he noticed. He recommended shorting the December futures round ₹5730, protecting a cease loss at ₹5830 and focusing on ₹5600.
Because the market continues to digest world volatility, analysts consider that defending 26,000 will likely be essential in sustaining the bullish construction of the Nifty. Whether or not the broader market joins the celebration stays the larger query for traders heading deeper into the December collection.
