Analysts see bullish trend intact as Nifty hits record high. What should investors do?

Synopsis Nifty hit a fresh intraday record, with analysts expecting the bullish trend to continue towards 26,500. Traders are advised to hold existing positions and focus on outperforming sectors like banking and financials. Strategies like buying at-the-money call options or bull-call spreads are suggested for potential gains. The bullish undertone in Nifty is expected to sustain after the index hit a fresh intraday record on Thursday, though upside was capped by profit-taking. ET spoke to three chartists on what’s in store for traders and what they should do. RAJESH PALVIYA HEAD OF TECHNICAL AND DERIVATIVES RESEARCH, AXIS SECURITIES What next? We anticipate the Nifty to maintain its strong upward trajectory, with the index likely advancing toward the 26,500 mark in the coming sessions. While Thursday witnessed some profit-booking at higher levels, it is not expected to trigger a meaningful correction. What should you do? Traders may consider holding their existing positions while trailing stop-loss levels higher to the 26,050–26,100 range, with a continued focus on outperforming sectors such as banking and financials, oil & gas, automobiles, and pharmaceuticals. Additionally, traders may look to buy the 26,200 at-the-money Call options for the December 2 expiry at around ₹130, aiming for a target of ₹200–210, with a stop-loss placed at ₹90. Live Events CHANDAN TAPARIA HEAD OF TECHNICAL AND DERIVATIVES RESEARCH, MOTILAL OSWAL FIN SERV What next? The market base is shifting higher, and as long as the index holds above 26,000, the bullish bias remains intact, with scope for Nifty’s move toward 26,500 and 26,750. Bank Nifty is expected to continue its outperformance, and sustaining above 59,000 could lead to 60,500–61,000. What should you do? Traders may continue buying on dips, especially in stronger sectors such as capital markets, financials, select metals, and autos . In Nifty options, traders can employ Bull-Call Spread strategy where they can buy one lot of 26,200 Calls, and sell one lot of 26,500 Calls simultaneously to make gains in the near term. The strategy lets traders profit from a moderate rise in Nifty at a much lower cost than buying a single Call, while keeping the maximum loss strictly limited. SOMIL MEHTA HEAD OF ALTERNATE RESEARCH, MIRAE ASSET SHAREKHAN What next? The Nifty and Bank Nifty remain in an uptrend, and we expect this momentum to persist in the coming days. Nifty 50’s next target is positioned near the 26,800 level , with immediate support at the 20-day moving average of 25,800, and medium-term support around 25,600. Sectoral trends also indicate notable strength in automobiles, metals, and financials at this stage. What should you do? For traders, several largecap names demonstrate upside potential, including HDFC Bank, ICICI Bank, Reliance Industries, Tech Mahindra, Bajaj Finserv, and Bajaj Finance. Traders may also consider atthe-money Call options in ICICI Bank for the December expiry, as the stock exhibits relative near-term strength. (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless Why Leyland and Iveco stand between Tata Motors and return to glory You bought IPOs of loss makers; check out what kind of companies are lining up How glitches-hit Air India is preparing for a take off India’s SIP boom has a hidden crisis: Are high dropout rates impacting wealth creation? Stock Radar: AB Capital stock in a sustained uptrend, hits fresh record high in November – time to buy or book profits? Weekly Top Picks: These stocks scored 10 on 10 on Stock Reports Plus 1 2 3