Trade Setup for November 19: Nifty stuck in a range but poised for a breakout toward new highs

After two strong sessions, the Nifty once again ran into a key psychological barrier near the 26,000 mark on Tuesday and slipped 103 points.

The index opened on a weak note and extended losses in early trade. Although it staged a brief rebound in the mid-session, the recovery proved short-lived, and the market closed near the day's low amid broad-based selling pressure.

Volatility remained high due to the weekly expiry, with sellers tightening their grip in the latter half of the session. The pullback also ended the bulls' impressive six-day winning streak.

Among Nifty stocks, Bharti Airtel, Axis Bank, and Asian Paints were the top gainers. Tata Consumer Products, Tech Mahindra, and Jio Financial Services dragged the index lower.

Weakness was widespread across sectors, with all major indices ending in the red, led by Realty, IT, and Metal.

The broader market fared worse, with the Nifty Midcap 100 falling 0.60%, and the Nifty Smallcap 100 slipped over 1%.

Meanwhile, shares of Billionbrains Garage Ventures Ltd., the parent of trading platform Groww, rose another 7%, marking gains for all five sessions since listing.

With today's move, Groww shares are now up nearly 90% from their issue price of ₹100. The stock's market capitalisation has surged to ₹1.1 lakh crore, higher than many listed capital market peers.

Nagaraj Shetti of HDFC Securities said the Nifty's near-term uptrend remains intact, and the current bout of consolidation or weakness could resolve over the next couple of sessions. He expects support around 25,800-25,750, from where a bounce could emerge.

Centrum Broking's Nilesh Jain said a decisive move above the resistance zone could open the door for an upside towards 26,200. "On the downside, immediate support lies at the 21-DMA near 25,800."

He added that Nifty is in a consolidation phase, which, once completed, could set the stage for fresh record highs.

Angel One's Osho Krishan said overall sentiment remains constructive, favouring a buy-on-dips approach.

According to LKP Securities' Rupak De, the Nifty stayed locked in a tight 150-point band for the second straight day. Support is placed at 25,850, and a breakdown below this could trigger a slide toward 25,700.

"On the upside, resistance at 26,000-26,050 must be crossed for the trend to reverse," he added.