Technical Analysis

WHAT LIES AHEAD : NEAR-TERM PICTURE [EasyDNNnews:PaidContentStart]

SPOT NIFTY :

Over the past five trading sessions, the Nifty 50 index has shown corrective behavior, with four out of the five sessions closing in the red. However, the 20-day moving average (DMA) has provided crucial support. After briefly dipping below this level Intraday, the index managed to close above it, indicating that the bulls still have some control. On Thursday, the index opened flat but soon gained momentum, surpassing the high of the previous session. However, the lack of support from BFSI stocks led to a failure to hold higher levels. On the positive side, strength in IT stocks helped the index close above the 26,000 mark. The daily chart reveals a bullish candle with shadows on both sides, indicating volatility, but the formation of higher highs and higher is positive. 

Looking ahead, the 26,105-26,155 zone is likely to act as immediate resistance. A sustained move above this level could push the index toward 26,250-26,310. Friday’s closing will be key in determining if the index can maintain its momentum. A close above 26,310 would mark a bullish signal. Such a move would negate the open=high formation and extend the weekly winning streak for a fourth consecutive week, maintaining a higher high and higher low formation. Support levels are at 25,968 (20-DMA) and 25,840. For the uptrend to resume, it is essential for the index to hold above the 25,840 support. A failure to do so could result in a close below the prior week's low, which may have negative implications for the market. 

NIFTY DERIVATIVES:
From the new lifetime high Nifty futures witnessed profit booking and closed lower over the last week closing level. Index fell nearly 0.76 per cent or 201 points from the last Thursday's closing to close at 26,189. ATM Implied Volatility (IV) is placed higher from the last week's level around 9, with India VIX decreased marginally from last week at 10.81. The Put-Call Ratio (PCR) of upcoming weekly expiry is in slightly oversold region at 0.817. For the coming weekly expiry, total call open interest stands at 21,22,702 contracts, while total put open interest is at 17,08,742 contracts. Among out-of-the-money call options, the 27,000 strike carries the highest open interest at 1,70,080 contracts, followed by the 26,500 with 1,55,943 and 26,100 strike with 1,29,982 contracts, respectively. On the put side, the out-of-the-money strike 26,000 has the highest open interest at 1,33,894 contracts, followed by the strike 25,500 with 1,25,160 contracts and strike 25,900 with 1,05,599 contracts. The Max Pain level for the upcoming expiry is positioned at 26,000. 

STOCK STRATEGY
TATA CONSULTANCY SERVICES LTD  ............. BUY .......... CMP ₹3228.90
BSE Code ...... 532540
Target 1 .... ₹3,330
Target 2 .... ₹3,350
Stoploss ...₹3,175 (CLS) 

▪️Current Observation: Tata Consultancy Services (TCS) is the digital transformation and technology partner of choice for industry-leading organizations worldwide. Since its inception in 1968, TCS has upheld the highest standards of innovation, engineering excellence, and customer service. 

▪️The stock has managed to close above its prior high and has broken out of a rising channel. The volumes have been higher over the last three days. It tested the 23.6 per cent retracement level of the prior decline. The Bollinger Bands have been in an uptrend and have been in contraction for a long time. The stock is trading about 6 per cent above the 50-day moving average (DMA), and the moving average ribbon is in an uptrend. The MACD is above the zero line, and the histogram indicates strong momentum. 

▪️The RSI has shifted into the bullish zone after a long time. The Stochastic RSI has given a fresh bullish signal, and the KST remains bullish. The Elder Impulse System has formed a bullish bar. In short, the stock has registered a bullish breakout. A move above Rs. 3,230 is positive, and it could test Rs. 3,330-3,350 on the upside. Maintain a stop loss at Rs. 3,175. 

REVIEW OF STOCK STRATEGY 

In issue no. 07, dated November 27, 2025, we recommended purchasing shares of Hindustan Copper Ltd at Rs 325.9. The stock closed on the lower side of consolidation range on the day of recommendation. This consolidation is a typical A-B-C type of wave correction and recent up move confirmed that stock completed its correction phase. By analysing these waves of the price patterns, we are presuming a breakout of this consolidation range as well. All short-term momentum oscillators are also on the verge of a breakout; the volume cluster is also supportive of the price action. Thus, considering all these factors, we expect a strong up move soon; hence, we recommend holding the position with the mentioned stop-loss.

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