Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.
On Monday, the benchmark index Nifty started the session on a strong note with a notable upside gap. More importantly, the index has given a decisive breakout above the neckline of the Adam & Adam Double Bottom pattern. Riding on this breakout, Nifty extended its gains gradually throughout the day and eventually closed at 26,172, registering a healthy 0.79% rise. The price action also resulted in the formation of a sizeable bullish candle on the daily chart, reinforcing growing optimism at the current juncture.
From a trend perspective, Nifty continues to trade well above all its crucial moving averages, and these averages are gradually sloping upward, a clear indication of strengthening underlying momentum. The daily RSI is also on the verge of crossing above the 60 mark, a zone often associated with improving buying strength, highlighting that momentum is shifting in favour of the bulls.
Within the Nifty 50 pack, Shri Ram Finance, Trent, and Wipro emerged as the top gainers, contributing significantly to the index’s up-move. On the flip side, HDFC Life and SBI were among the key laggards for the day. Sectorally, the market breadth remained encouraging — barring Nifty Realty and Nifty Consumer Durables, all major sectoral indices ended in the green. Notably, Nifty IT, Nifty Chemicals, and Nifty Metal indices outperformed, reflecting broad-based strength.
The positive sentiment extended to the broader markets as well. Both Nifty Midcap 100 and Nifty Small Cap 100 closed firmly in the green, echoing renewed investor interest beyond frontline stocks. A particularly noteworthy development was the Nifty Small Cap 100 index closing above its 20 day EMA for the first time since November 18, 2025, hinting at a potential shift in short-term trend. Market breadth further strengthened this narrative, with the advance–decline ratio skewed decisively in favour of advancers. From the broader Nifty 500 universe, as many as 371 stocks ended on a positive note, showcasing the breadth and depth of Monday’s market rally.
Nifty View
Going ahead, the Nifty is likely to extend its northward journey in the next couple of trading sessions. As per the measure rule of the Double Bottom pattern, the upside target is placed at 26420 in the short term. While on the downside, the 20-day EMA zone of 26000-25950 will act as crucial support for the index.
Bank Nifty View
The banking benchmark index, Bank Nifty, ended on a positive note. However, it has underperformed the frontline indices on Monday.
Going ahead, the zone of 59500-59600 will act as a crucial hurdle for the index. Any sustainable move above 59600 will lead to a sharp upside rally upto the 60000, followed by the 60500 level in the short term. On the downside, the 20-day EMA zone of 59100-59000 will act as important support for the index.
