Trade Setup For Nov 6: Nifty Finds Support At 25,500–25,300

Analysts expect the consolidation phase to continue even as the NSE Nifty 50 has seen a corrective decline of more than 500 points in the last nine sessions.

The index formed a bearish candlestick pattern with a lower high and lower low for the fourth session in a row, highlighting extended profit booking on the weekly expiry session. This has come to relieve the earlier overbought condition, according to Bajaj Broking Research.

Key support levels for Nifty are seen around 25,500–25,300, while immediate resistance is placed at 25,800, according to Bajaj Broking Research.

"Sustained move above 25,700 will be essential to revive bullish momentum, while failure to hold above the 25,500 zone could invite further weakness in the near term," Amruta Shinde, technical and derivative analyst at Choice Broking, said.

Bajaj Broking advised investors to "accumulate quality stocks in a staggered manner from short to medium term prospective".

The research firm added that the first signals of the current corrective trend reversal will be if the charts show higher high and higher low.

The Bank Nifty is expected to continue its consolidation phase, as per analysts.

"The index formed a small bear candle, which remained enclosed inside the previous session's high-low range, highlighting consolidation amid stock specific action. Going ahead, index to extend consolidation of the last two weeks in the range of 57,300-58,500, thus forming base after the next leg of up move," Bajaj Broking Research stated.

Indian benchmark indices concluded the trading session in negative territory on Tuesday, with the NIFTY 50 closing below the critical 25,600 mark amid broad-based selling pressure across the entire market. All sectoral indices registered losses, signalling widespread weakness on the day.

The decline in the NIFTY 50 was principally led by large-cap stocks, including Power Grid Corporation and Coal India. The broader market suffered a similar fate, with both the Nifty Midcap and Nifty Smallcap indices also ending in the red.