A volatile week likely
Nifty slipped in Friday’s trade, pressured by weak global cues and renewed worries over stretched valuations in the AI and tech space.
The 2-big questions:
1) Has the recent rally run out of steam?
2) Can Nifty recover after Friday’s sharp sell-off?
For now, the correction appears more like profit-booking rather than a trend reversal. The index is expected to consolidate and attempt another push toward its all-time high of 26,277.35.
The 2-Biggest Headwinds in near term:
1) Concerns over stretched AI valuations remain.
2) Rapidly fading expectations of a December U.S. Fed rate cut.
Despite the caution, Nifty bulls could regroup on backdrop of optimism surrounding a potential US–India trade agreement.
Please note, despite the steep 50% U.S. duty, India’s export decline has been relatively moderate, giving policymakers leverage — especially with growing signals of a potential tariff rollback.
GDP Snapshot:
India’s GDP growth data for the quarter ending 30 September 2025 is due on Friday, November 28th. The economy previously expanded 7.8% YoY in Q1 FY26, accelerating from 7.4%, marking the strongest growth in five quarters. Markets will be keen to see if this momentum continues.
Bottom-line: Nifty may rise, but volatility shall persist; also due to November F&O expiry due this Tuesday.
The Nifty options data suggests Nifty is likely to be in a trading range of 25000-27000 zone. Maximum Call OI is at 26000 followed by 27000 strike prices. 26000 mark is now Nifty’s major resistance zone on closing basis. Maximum Put open interest stands at 25000 levels followed by 26000 levels. Call writing was seen at 25600 and then at 25500 strike price, while there was meaningful Put writing at 25200 and then at 25300 strike prices.
Price Forecast:
Nifty CMP (26068)
Support : 25740/24422
RESISTANCE: 26300/26600
RANGE: 25750-26289
200 DMA: 24515
Nifty PCR: 1.00
BIAS: Positive
Bank Nifty CMP (58868)
Support: 57600/56000
RESISTANCE: 59650/61000
RANGE: 57900-59500
200 DMA 54498
BankNifty PCR: 0.89
BIAS: Positive
Preferred trade for the week:
Nifty (26068): Buy on dips between 25822-25835 zone. Targets at 26150/26277. Aggressive targets at 26500 zone. Stop at 25500.
TOP SECTORS
Bullish Sectors: BANKS, IT
Bearish Sector: MEDIA, METALS, REALTY
STOCKS IN FOCUS:
BULLISH VIEW: FEDERALBNK, PGEL, M&M, NYKAA, BIOCON, INFY, TCS
BEARISH VIEW: VEDL, JSWENERGY, COFORGE, ADANIPORTS, BAJAJFINSV, LODHA, HAL, DIVISLABS, BAJAJ AUTO, MAZDOCK, DMART, PERSISTENT, HDFCAMC, ALKEM, DIXON, POLYCAB, BOSCHLTD, HINDALCO, KEI
Tata Consumer Products
Tata Consumer Products BUY
CMP 1183
Target Price 1447
Stop 1039
52 Week H/L 1203/884
P/E 87.90
EPS (TTM) 18.65
Promoters/FIIs/DIIs//Public 33.84/22.06%/22.20%/0.01%
Book Value 205
Market Cap (INR) 117173 Cr.
Tata Consumer Products is a major Indian Food & Beverage company, formed by bringing together the consumer-products businesses of the Tata Group under one umbrella.
Headquartered in Mumbai, India, the company is home to iconic brands including Tata Tea, Tata Salt, Tetley, Eight O’Clock Coffee, Himalayan Water, and emerging food-brands such as Tata Sampann, Tata Soulfull, Tata Gluco Plus.
TCPL serves global markets in over 40 countries, and is guided by the Tata group’s values of responsibility, sustainability, and consumer-centric innovation.
Diversified portfolio and food‐business ramp up: A broader portfolio supports sustainable growth, as reliance on just one category (tea) is reduced.
• The company is moving beyond traditional tea & beverage into foods, ready-to-eat, spices, breakfast cereals etc.
• This diversification helps mitigate commodity risk (tea/coffee prices) and taps higher-growth segments.
Strong recent earnings performance: In Q2 2025, Tata Consumer Products (TCPL) reported an 18% year-on-year revenue growth, reaching ₹4,966 crore, while its consolidated net profit increased by approximately 11% to ₹404 crore. This performance was driven by a strong 18% growth in its India business and continued momentum in its international segment, though the company saw a hit to certain brands from new GST regulations. International Business: Grew by 15%, supported by strong performance in the U.S. market. Margin Expansion: Consolidated EBITDA margin expanded by 70 basis points sequentially (QoQ) to 13.6%.
Premiumisation & consumption trends: The company is focusing on premium brands (tea, coffee, organic, health‐foods) and e‐commerce channels, which have higher growth potential. With rising income levels and changing consumer behaviour in India (rural + urban), exposure to premium segments boosts growth potential beyond volume alone.
Low debt and strong balance sheet: The company has low leverage and manageable debt levels.
Key Considerations / Risks:
Premium & growth segments’ success is not guaranteed — execution risk remains.
Technical Outlook: The stock has been consolidating for last 25-months with immediate support seen at 1100-1125 area. Confirmation of strength above its all-time-high at 1254 mark. Above 1254, a massive ‘Flag Breakout’ on cards with targets at 1450 mark. The stock is currently trading well above its 200-DMA at 1085 levels.
Preferred trade
Buy Tata Consumer at CMP 1183, targeting 1209/1255 and then aggressive targets at psychological 1450 mark. Stop at 1097. Holding Period: 9-12 Months.
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