Trade Setup for November 28: Nifty eyes 26,350 but analysts warn against chasing at highs

Equity benchmark Nifty 50 climbed to a fresh record high of 26,290.25 on Thursday, moving past its earlier peak of 26,277 that was scaled exactly 14 months ago on September 27, 2024.

From the tariff tantrum lows of 21,745 in April, the index has now recovered about 19%.

Sensex crossed 86,000 and Nifty briefly moved above 26,300 for the first time. The market hit new highs but slipped from those levels to end largely flat.

After a strong breakout on Wednesday, Nifty moved into a consolidation phase at its record zone and closed the session with a modest gain of 10 points amid volatility.

The index opened firm and touched a fresh all-time high of 26,310 in early trade, but momentum fizzled out. Nifty later drifted into mild weakness and spent most of the session moving in a narrow range.

Within the Nifty basket, Bajaj Finance , ICICIBANK and Shriram Finance featured among the top outperformers, while Adani Enterprise , Eicher Motors and Eternal came under noticeable selling pressure.

Across sectors, Media, Financial Services and Private Bank indices led the advances, whereas Oil & Gas, Realty and Consumer Durables ended as key laggards.

The broader market had a mixed outing, with the Nifty Midcap 100 closing largely unchanged, while the Nifty Smallcap 100 slipped 0.53%, underperforming the large-cap benchmarks.

On the global front, the US equity market will remain shut today on account of Thanksgiving Day, which could keep global cues muted tomorrow morning.

Nagaraj Shetti of HDFC Securities said the latest market behaviour points to a consolidation phase after the recent breakout. He added that the index may stay choppy in the short term before attempting another strong up-move.

Shetti pegs immediate support at 26,100-26,050, with the next upside level near 26,600.

Nilesh Jain of Centrum Broking said the broader structure remains positive, with room for the index to head toward 26,350, while immediate support has shifted higher to 26,000.

However, he cautioned that buying the index at these elevated levels may not offer a favourable risk-reward setup. Waiting for a meaningful pullback would be the more sensible approach, Jain said.

Vinay Rajani of HDFC Securities mentioned that with the Nifty now in uncharted territory, the uptrend remains intact. He sees resistance around 26,500, with support anchored in the 26,000-26,050 zone.

According to LKP Securities' Rupak De, the Nifty hit a fresh all-time high after 14 months, but the breakout lacked strength and the index moved sideways afterward. He said the short-term trend is still positive, as the Nifty is holding well above key moving averages.

De sees support at 26,000 and expects the index to move toward 26,440/26,580 as long as this level holds. He believes a buy-on-dips strategy is more appropriate now, given the likelihood of near-term consolidation after the recent sharp rally.