Trade Setup June 27: Nifty eyes 26,000; bullish momentum expected to continue

The Nifty 50 surged for the third consecutive session on Thursday, climbing 304 points to close at 25,549—its highest in nearly nine months. The sharp upward move marked a decisive breakout from its two-month trading range of 24,500–25,200. Analysts believe this momentum could propel the index toward 25,800–26,000 in the coming days.

Intraday dips were swiftly bought into, showing strong bullish sentiment, especially on the day of the monthly expiry. The broader market mirrored this optimism, with the Nifty Midcap 100 up 0.59% and the Nifty Smallcap 100 gaining 0.42%.

Sectorally, metals, oil & gas, and financial services led the rally. Nifty Metal rose 2.3%, fueled by a drop in Brent crude to $66 per barrel and a weakening US dollar, which hit a three-year low below the 97 mark. In contrast, the media, realty, and IT sectors ended in the red.

Domestic cues also played a role. A strong start to the monsoon season—with rainfall 4% above the long-period average—lifted hopes for agri, rural, and consumer-facing sectors. Defence stocks may also stay in focus due to India’s increasing manufacturing alignment with Europe and an export target of ₹50,000 crore by 2029.

Siddhartha Khemka of Motilal Oswal expects the bullish momentum to persist, backed by stable domestic indicators and a supportive global backdrop. Nagaraj Shetti of HDFC Securities noted that the breakout has opened the path for the Nifty to test 25,800–26,000 in the near term, with immediate support seen at 25,400.

Rupak De of LKP Securities echoed the positive sentiment, saying the index’s breakout above consolidation signals strong optimism. With resistance seen only around 25,700–25,750, the upside may continue, barring a drop below 25,300.