Nifty Trading Plan

The Nifty 50 sustained its northward move and, as expected, hit 24,500 intraday, closing more than a percent higher with a bullish candlestick pattern on the daily charts on November 6. After a significant run-up of around 700 points in the last two days, some profit booking and consolidation cannot be ruled out, according to experts. Sustaining above 24,500 could take the Nifty 50 towards 24,750, but in case of profit booking, the index may find support at 24,350 (10-day EMA), followed by 24,200 (the low of the previous day's candle). The Bank Nifty needs to sustain above 52,200 for an up move towards the 52,600-53,000 area, but below it, 51,800 could be possible.

On Wednesday, the Nifty 50 closed at 24,484, up 271 points, while the Bank Nifty rose 110 points to 52,317, with a positive market breadth. About 2,012 shares gained, compared to 492 declining shares on the NSE.

Nifty Outlook and Strategy

Jatin Gedia, Technical Research Analyst at Sharekhan

The Nifty witnessed follow-through buying interest from the previous trading session. On the daily charts, the Nifty has violated the lower top-lower bottom formation, suggesting a trend reversal. The daily momentum indicator has shown a positive crossover, which is a buy signal. Thus, both price and momentum indicators suggest that the up move is likely to continue towards 24,756 – 25,000, which coincides with the 40-day average and the 38.2 percent Fibonacci retracement level. Additionally, 25,000 has the highest concentration on the Call side. Thus, any intraday dips or pullbacks towards 24,400 – 24,350 should be used as an opportunity to go long.

Key Resistance: 24,750, 25,000

Key Support: 24,350, 24,400

Strategy: Buy Nifty with a stop-loss of 24,300, targeting 24,750/25,000.

Vidnyan S Sawant, Head of Research at GEPL Capital

This week, Nifty reached a low of 23,816 and formed a long lower wick candle pattern, indicating strong demand at lower levels. The index has also breached last week’s high, signaling strengthening bullish sentiment. Additionally, Nifty has found support along a rising trendline, establishing a Change in Polarity (CIP) setup once again. The RSI (Relative Strength Index) momentum indicator is moving upward, forming higher highs and higher lows, which further reflects gaining bullish momentum. Immediate support levels are positioned at 24,200 and 23,800, while resistance is expected at 25,200, with an additional resistance level at 25,700.

Key Resistance: 25,200, 25,700

Key Support: 24,200, 23,800

Strategy: Buy Nifty above 24,500, with a stop-loss of 24,200, targeting 25,200.

Shitij Gandhi, Senior Technical Research Analyst at SMC Global Securities

The Nifty has given fresh bullish momentum above its falling trendline in the declining channel and is now expected to move further north. However, we expect intraday volatility to grip the markets.

Key Resistance: 24,800, 24,900

Key Support: 24,400, 24,300

Strategy: Buy Nifty on dips near 24,400, with a stop-loss below 24,200, targeting 24,750.

Bank Nifty - Outlook and Positioning

Jatin Gedia, Technical Research Analyst at Sharekhan

The Bank Nifty has taken a back seat while the Nifty IT index has taken the lead. The undertone for the Nifty Bank remains positive. There is a gap area in the range of 52,800 – 52,900, which is acting as resistance. Once crossed, this could lead to an up move towards 53,500. On the downside, crucial support is placed at the 51,760–51,700 zone.

Key resistance: 52,600, 52,850

Key Support: 51,800, 51,600

Strategy: Buy Bank Nifty with a stop-loss of 52,000, targeting 52,850/53,000.

Vidnyan S Sawant, Head of Research at GEPL Capital

Bank Nifty recently found support near its 20-week EMA (Exponential Moving Average) following a pullback from record highs, resulting in a modest rebound. Over the past few weeks, the index has formed an inside-week candle pattern on the weekly charts, reflecting indecision in the short to medium term. On the daily charts, Bank Nifty has been trading within a broader range of 50,800 to 52,600. The RSI remains near 50, indicating neutral momentum. Key resistance levels are at 52,600, with an additional resistance level at 53,300. On the downside, support is seen at 51,500, followed by 50,800 and 49,600.

Key Resistance: 52,600, 53,300

Key Support: 51,500, 50,800

Strategy: Buy Bank Nifty above 52,600, with a stop-loss of 52,200, targeting 53,300.

Shitij Gandhi, Senior Technical Research Analyst at SMC Global Securities

The technical setup seems better for the index, as Bank Nifty is on the verge of a fresh breakout above its consolidation phase. We believe the index has major support in the 52,000–51,800 zone, and any dip to these levels should be taken as a buying opportunity.

Key Resistance: 52,600, 52,800

Key Support: 52,000, 51,800

Strategy: Buy Bank Nifty on dips near 52,000, with a stop-loss below 51,700, targeting 52,500.