Nifty50
NIFTY: 26328.55 – The Nifty index has been moving in a rising channel as can be seen on the 4 hourly (H4-chart) posted above. It should be noted that the width of this channel is approx. 550 – 570 points – From point 2 & 3 circled in the chart above. So, while the Nifty index has managed to get past the earlier highs of 26220 – 26230 (also marked here) a proper breakout shall occur once the index manages to get past the upper end of the rising channel, which currently is at 26400 – 26430.
In case of this breakout, the index could then add 550 – 570 points (giving a rough target of 26950 – 27000. A failure to sustain above 26430 odd levels, could indicate a pullback to earlier highs of 26220 – 26230, while a break below these levels could see the Nifty head back to the lower end of the rising channel which is currently around 25920 – 25900 levels.
Nifty Bank
BankNifty: 60150.95 – The Banknifty Up move started from levels of 53650 in September 2025 and hit a high of 59800 in December 2025. IT then consolidate in the range of 59800 – 58880 (as can be seen in the 240 minute or H4 chart above). On Friday the banknifty managed to move above the upper end of the range as it closed at 60150.
Using simple measuring implications for finding targets in the ratio if 1:1 or 1:1.382 or 1:1.618, we arrive at an up move of approximately 920 points (1:1) or 1270 points (1:1.382) or 1490 points (1:1.618) from the breakout levels of 59800. This gives us three possible upside targets:
60720 / 61070 / 61290.
The out look on banknifty should be positive unless we see the index negate the breakout by declining below 59800. In occurrence of such an event, the lower end of 58880 will again be considered an important support.
Nifty Oil & Gas
Nifty Oil & Gas Index: 12340 – This week we are featuring the Nifty Oil & Gas index, which has stocks like Reliance / BPCL / HPCL / IOC / Petronet / IGL / MGL and other stocks as its main constituents. The most important observation to be made on the chart of the OIL & Gas index is that it appears to have broken out of what is commonly referred as the Cup and Handle Pattern.
A breakout on the upside suggests that the Oil & Gas Index could possibly scale higher levels. The measuring implications of this pattern suggest that the depth of the cup (in this case approx. 1350 points) could be a target on the upside. The breakout level was around 12200 - 12250, thus giving a logical upside target of 13600. The bullish view should remain in force unless we see a break down below 12200 again.
While we are not commenting on individual stocks or giving trading recommendations here, traders can look at the individual components and derive stocks that they desire to build positions in.
Wishing you all happy Trading and Investing in the year 2026.
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