New record highs for the Nifty appear set to become the new norm, buoyed by India’s Q2 FY26 GDP print of 8.2% and broad-based sectoral strength. The lingering question is whether FPIs will return in force; on Friday, FIIs were net sellers to the tune of Rs 3,796 crore. Attention now turns to whether foreign investors shift from steady offloading to meaningful buying on hopes of further rate cuts, earnings upgrades and India’s rising weight in global indices.
Geopolitically, Russian President, Vladimir Putin’s 4–5 December visit for the 23rd Annual Summit adds a layer of strategic significance.
Technically, the Nifty remains above its 21-DMA (25,886), 50-DMA (25,554), 100-DMA (25,223) and 200-DMA (24,578), with auto stocks in focus as the Nifty Auto Index scales fresh highs ahead of November wholesale numbers.
Preferred trades: Nifty (26,203) — buy at CMP, stop 25,771, targets 26,310/26,421, with aggressive targets at 26,700–27,000; Bank Nifty (59,753) — buy at CMP, stop 58,371, targets 59,900/60,300, with aggressive targets at 60,700–61,000.
The chart setup remains bullish on Cummins India, HDFC Bank and Glenmark on early intraday dips.
Top pick: M&M (CMP 3,757) — buy at CMP, stop 3,611, targets 3,787/3,813, with an aggressive target at 3,977; momentum remains robust above 3,787, with key interweek support at 3,641 and 200-DMA at 3,179.