Market experts see signs of a strong rally led by Nifty 50’s wave structure, PSU banks, and bullish patterns in top stocks like Ashok Leyland, Polycab, and Godrej Properties.
Nifty 50: Entering Wave 3 of a Powerful Rally?
According to Ashish Kyal, CMT, Founder of Waves Strategy Advisors, the Nifty 50 may have entered the third wave of its ongoing uptrend—a phase known for rapid and steep rallies. Kyal believes this wave has the potential to take Nifty to 26,100 levels, likely before Diwali 2025.
- The index has already surged from 24,400 to 25,350, despite persistent global and domestic concerns.
- Kyal warns this rally could be missed by many, a typical behavior of wave 3, which catches traders off guard with its pace.
PSU Banks: Driving Market Momentum
The Nifty PSU Bank Index has been a major force in the current rally, rising nearly 9% over the past three weeks.
- The index broke out above a key resistance level at 7,300, now targeting 8,000, which would mark a new lifetime high.
- Despite being in an overbought zone, buying on dips is recommended as long as 7,100 remains intact as support.
Bank Nifty: Strength Building, Private Banks to Join
Bank Nifty has rebounded more than 4% from its support near 53,561, driven primarily by PSU bank performance.
- Key resistance is at 56,000; a breakout here could push the index towards 57,500.
- Immediate support is at 54,800.
- Private banks, which have lagged, are expected to start outperforming in the coming weeks.
Ashok Leyland: Structural Uptrend Confirmed
Ashok Leyland has broken out of a Rounding Bottom pattern, a strong bullish formation signaling long-term strength.
- The stock remains in a structural uptrend, supported by a healthy RSI and price action.
- Recommended strategy: Buy on dips, with targets at ₹150 and ₹160.
- Support lies at ₹132, also the neckline of the breakout pattern.
Polycab India: Still Has Room to Run
Polycab India continues to show technical strength:
- Rebounded from its 50-day EMA in August 2025.
- Maintains a steady pattern of higher highs and higher lows since April.
- A decisive breakout above ₹7,600 with volume could lead to targets around ₹8,400.
Godrej Properties: Breakout from Triple Bottom
Godrej Properties may have formed a significant bottom with a bullish Triple Bottom pattern.
- Prices reversed from the ₹1,900–1,950 support zone and are now defending previous lows.
- Volume-supported breakout suggests an upside target of ₹2,260.
- Positive momentum likely as long as ₹1,900 remains protected.
Top Stock Picks for the Week
1. Bank of Baroda
- Broke out of a long-term consolidation range (₹232–₹257).
- Use dips near ₹245–248 as a buying opportunity.
- Target: ₹260, then ₹270.
- Support: ₹240.
2. Gland Pharma
- Pharma sector outperforming; stock has formed higher highs and higher lows.
- Consolidating between ₹1,970–₹2,050.
- Breakout above ₹2,050 could take it to ₹2,200.
- Support at ₹1,940.
Outlook: Nifty’s Path to Record Highs by Diwali?
- With Nifty likely in wave 3, historical wave patterns suggest sharp and fast gains.
- Key sectors like PSU banks, real estate, and pharma are showing leadership.
- Record highs before Diwali are a strong possibility if momentum continues and resistance levels are broken decisively.
