NIFTY Index Chart Analysis

The benchmark Nifty 50 index recently broke out of an almost one-month cup-like formation (though not a textbook pattern), registering a fresh 52-week high and coming within touching distance of reclaiming its all-time high. This move was fuelled by buoyant global sentiment and encouraging news on progress in the India–US trade deal. However, the breakout lacked follow-through buying. Instead, the index slipped into negative territory for the third consecutive session on Tuesday, forming a sequence of lower highs and lower lows. For the past five weeks, the index has struggled to sustain above the 26,100–26,200 zone or near its record highs, and it has already declined 389 points from last Thursday’s peak.[EasyDNNnews:PaidContentStart]

On the November F&O expiry day, the index largely remained confined to the first hour’s range. Selling pressure emerged in the final 75 minutes, dragging the index below the 25,900 mark. Private sector Banks, particularly HDFC Bank and ICICI Bank, weighed on the index, while PSU banking heavyweight SBI offered some support by scaling a fresh 52-week high. With three consecutive declining sessions, the Nifty 50 nearly tested its 20-DMA, which has now turned lower. Importantly, the index closed below the 38.2 per cent retracement of the previous swing, signalling a possible counter-trend. Immediate support lies near the 20- DMA at 25,848, while the stronger support zone is placed between 25,715 and 25,740—the region corresponding to the previous upside opening gap.

Over the past two months, the quest for a new high has remained elusive. A fall below 25,715 could prolong the corrective consolidation for several more months. A breach of 25,489—the 50-DMA—would further reinforce downside risks. Currently, the index is hovering near last week’s low. Despite the short-term correction, the broader structure remains bullish, underpinned by a series of higher lows on higher time frame. From a pattern standpoint, the index has already broken out of a multi-month symmetrical triangle—a bullish continuation formation—and continues to trade above its upper trendline. As long as the Nifty holds above the 25,650–25,700 band, the breakout remains valid. All major weekly moving averages (20, 50, 100, and 200) are still rising, supporting the long-term uptrend.

On the upside, immediate resistance is seen at 26,000, followed by the 26,200–26,300 zone. A sustained move above this region could open the path toward 26,800 in the medium term. Meanwhile, the 14-period daily RSI has slipped below 55, and the MACD has turned bearish. Until the index trades above the previous day’s high, aggressive long positions may be avoided. A close above 26,000 would be sentimentally encouraging, whereas price action near the 25,650–25,750 support cluster should be closely monitored for signs of a base formation.

STOCK RECOMMENDATIONS
NATIONAL ALUMINIUM CO. LTD ................. BUY ...................... CMP ₹253.95
BSE Code : 532234
Target 1 .... ₹274 
Target 2 ..... ₹285 
Stoploss....₹239.20 (CLS)

National Aluminium Co. Ltd. (NALCO) is one of India’s largest producers of aluminum and alumina, with a fully integrated value chain that includes bauxite mining, alumina refining, aluminum SMElting, and power generation. NALCO is a public sector enterprise that plays a crucial role in supplying high-quality aluminum products to a wide range of industries, including automotive, Aerospace, and Construction.

Technically, the stock saw a notable surge in its price after forming a three-week tight pattern. The stock touched a high of ₹271.90, after which it experienced a counter-trend correction. This correction halted near the confluence of the 50 percent Fibonacci retracement of the current rally and the 20-DMA, providing an entry opportunity.

The stock is meeting most of the CANSLIM characteristics. It has an EPS Rank of 96, which is an excellent score, indicating consistent earnings; an RS Rating of 87, which is good, indicating outperformance compared to other stocks; Buyer Demand at A+, evident from the recent demand for the stock; a Group Rank of 13, indicating it belongs to a strong industry group (Metal Processing & Fabrication); and a Master Score of A, which is the best. BUY the stock with a stop loss of ₹239.20 for a target of ₹274–285.

CARYSIL LTD. ..................................... BUY ........................... CMP ₹960.60
BSE Code : 524091
Target 1 ...... ₹1,080
Target 2 ..... ₹1,150 
Stoploss.....₹904 (CLS)

Carysil Limited (CL) was incorporated on January 19, 1987, by the first-generation promoter Mr. Ashwin Parekh. The company manufactures granite-based kitchen sinks, which are referred to as composite quartz sinks. The company’s registered office is in Mumbai, and its manufacturing plant is located in Bhavnagar, Gujarat, where it holds ISO 9000:2001 certification. It was also listed among the 200 best under-a-billion companies by Forbes Asia in August 2020.

The stock traded in a tight range for a prolonged period, and after this consolidation, it formed a sizable bullish candlestick pattern on the weekly time frame, with robust volume—the highest since the latter part of May 2025. The stock then formed an inside bar on the weekly time frame and is currently trading near the low of the sizable bullish candlestick pattern, offering an entry opportunity

The stock is meeting most of the CANSLIM characteristics. It has an EPS Rank of 84, which is a good score, indicating consistent earnings; an RS Rating of 87, which is good, indicating outperformance compared to other stocks; and Buyer Demand at B+, reflecting recent demand for the stock. BUY this stock with a stop loss of ₹904 for a target of ₹1,080–1,150.

*LEGEND: ■ EMA - Exponential Moving Average. ■ MACD - Moving Average Convergence Divergence ■ RMI - Relative Momentum Index ■ ROC - Rate of Change ■ RSI - Relative Strength Index

(Closing price as of Novenber 25, 2025)

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