NIFTY TECHNICAL OUTLOOK
Based on Market Closing on Tuesday, November 07, 2023
The Nifty concluded the session at 19406.70, registering a marginal loss of -5.05 points, equivalent to -0.03 percent. To establish a positive trend, the index must consistently trade above the critical level of 19425.00.
The Nifty commenced the day with a negative bias, opening at 19404.10, and reached an intraday low of 19329.10 in the morning trade. However, during the afternoon session, the index mounted a recovery, achieving an intraday high of 19423.50, ultimately settling at 19406.70. Among the sectors, pharmaceuticals, banking, and metals witnessed notable gains, while realty, media, and auto sectors closed with a bearish bias. The market breadth favored the bulls, with 1302 stocks on the rise, 1070 declining, and 111 remaining unchanged. Notable gainers under the Nifty included SUN PHARMA, BPCL, NTPC, and DRREDDY, whereas major losers were HEROMOTOCO, BAJFINANCE, COALINDIA, and DIVISLAB.
From a technical perspective, the Nifty continues to trade above short-term moving averages, with momentum indicators signaling a positive trend. However, it's worth noting that the index formed a Doji candle on the daily chart and closed just below the previous day's close, suggesting a potential consolidation phase. The nearest intraday resistance is situated at the 19425 level. Should the Nifty successfully trade and maintain levels above this, it may pave the way for a resumption of the bullish trend. The subsequent short-term resistance can be found at 19500 levels.
Intraday Support levels: 19350, 19300, 19250 Resistance levels: 19425, 19500, 19550 (15-Minute Charts)
For positional traders, it's important to monitor short-term support levels at 19233-18880, along with resistance at 19500-19800.
BANK NIFTY
In the previous trading session, Bank Nifty closed at 43737.90, marking a gain of 118.50 points. From a technical standpoint, momentum indicators continue to signal a positive trend, with the index maintaining its position above the short-term moving averages.
Examining the daily chart, we observe that the index formed a white candle following four consecutive Doji candles and closed above the high of the previous day's candle. These patterns collectively suggest that the momentum remains in favor of the bulls. Looking ahead, the intraday resistance is positioned at 43800. A breakthrough above this level could potentially sustain the positive momentum in the days to come, with the next short-term resistance found at 44000 levels.
For intraday traders, the support levels to watch are at 43600, 43400, and 43200, while resistance levels can be identified at 43800, 44000, and 44200, as indicated on the 15-minute charts.
Positional traders should maintain a focus on short-term support levels at 43500-42800, while keeping an eye on resistance within the range of 44000 to 44650.
