Nifty at a make-or-break zone: Why 26,000 support and 26,200 breakout matter, explains Sneha Seth

Speaking to ET Now, Seth said the recent pause near the 26,200 level on the Nifty 50 is largely due to call-side positioning and mild profit booking, rather than any structural weakness.

Nifty technical view: 26,000–26,050 key cushion

Seth highlighted that the index has seen a decent build-up of call positions around the 26,200 and 26,300 strikes, leading to short-term consolidation. However, she identified the 26,000–26,050 zone as a crucial support area, coinciding with the gap created earlier this week and the 20-day moving average.

“We do not expect a major downside from here. Traders can consider long positions with a stop loss near 25,900. A decisive move above 26,200 could trigger a strong upside,” she said.

Banking stocks hold the key

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According to Seth, the next leg of the rally will depend on the banking space, particularly private sector banks. She noted that banking indices have been stuck in a narrow range, with resistance near 59,500 and support around 58,800–58,900.
“If we see buying interest in private sector banks, Nifty could move above 26,200 anytime soon,” she added, maintaining a positive bias on the market.

Sectoral trends: Metals strong, IT offers buy-on-dips

On sectoral performance, Seth remains bullish on Nifty Metal, citing a strong chart structure and sustained momentum.
“We may see continuation of the up-move towards 11,000–11,500 levels. Stocks like Tata Steel and Hindalco look attractive from this space,” she said.For Nifty IT, Seth believes recent profit booking is healthy and not indicative of a major correction. She expects the 20-DMA to act as a strong support and advises investors to use dips to accumulate quality IT stocks.

Stock picks: UPL, Ola Electric in focus

On the stock-specific front, Seth said UPL continues to show strong technical strength, forming higher tops and higher bottoms while trading above key moving averages.

Stop loss: 760
Target: 804

She also highlighted Ola Electric as another counter showing signs of recovery after a healthy correction.

Stop loss: 35
Near-term target: 38
Extended upside: 40–42

Market Outlook

Overall, Seth believes the market’s structure remains constructive, with limited downside risk as long as key supports hold.

“The bias remains positive. Traders should closely track banking stocks and use sectoral dips as buying opportunities,” she said.