Structural bull market in play: Nifty may hit 26,300 in November
“Given the strong price action in the last two sessions, the market appears poised to maintain its upward momentum,” Shah said. Talking to ET Now, he pointed to two key triggers — optimism after the exit poll results indicating a likely NDA majority in Bihar, and improving trade relations between India and the U.S., especially around tariff negotiations.
According to Shah, the recent retracement to 25,400–25,500 was merely a pause in the ongoing rally. “These levels remain a strong support zone,” he added, calling every dip in this range a buying opportunity. ICICI Direct now expects the Nifty to scale 26,300 in November.
Top sectors to watch: Defence and PSU Banks lead the charge
Shah remains bullish on the defence and banking sectors, which he says are showing strong technical setups after a healthy correction.
“The defence index is breaking out of an eight-week consolidation phase, signaling renewed strength,” he said.
Within defence, Bharat Electronics Ltd (BEL) stands out as Shah’s top pick.
The stock, trading just 3% below its lifetime high, continues to form a higher-top, higher-bottom pattern, a classic indicator of sustained bullish momentum.
Target: ₹468
Stop Loss: ₹385
PSU banks showing structural strength: Canara Bank on radar
Among banks, Shah prefers Canara Bank, noting that the stock has broken out of an 11-year consolidation phase. “This is not just a short-term move; it’s a structural breakout,” he emphasized.
Target: ₹154
Stop Loss: ₹135
Shah believes PSU banks, led by Canara Bank, continue to outperform and could lead the next leg of the rally.
Investor strategy: Use dips as buying opportunities
With the Nifty consolidating around 25,900–26,000, Shah advises investors to remain optimistic. “We’re in a long-term uptrend. Any correction toward 25,400–25,600 should be viewed as a buy-on-dips opportunity rather than a sign of weakness,” he said.
Outlook: Positive sentiment, technical breakouts, and broader participation
Broader market participation across sectors — particularly defence, PSU banks, and industrials — indicates that the rally is not narrow-based. “We are seeing accumulation across multiple indices, confirming the strength of this bull market,” Shah added.