The Indian benchmark indices, Sensex and Nifty 50, ended higher on Wednesday, November 11, led by buying in PSU Bank and Auto stocks. The BSE Sensex index ended 0.95% or 772.75 points higher at 81,879.40, while Nifty 50 closed at 25,255.05, up 210.40 points or 0.84%. Nifty Bank, too, ended over 1.7% higher.
The Sensex jumped over 1,300 points to trade above 82,400 level, while the Nifty 50 surged over 1% to hover around 25,400. The Bank Nifty index surged 1.7%. However, the indices later pared some gains to trade off-day's high levels.
Broader markets supported the rally, as the Nifty Smallcap 100 surged 1.67% and the Nifty Midcap 100 index gained 0.6%.
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Among sectors, gains were seen in Nifty Auto, Nifty PSU Bank, Nifty FMCG, Nifty Metal and Nifty Oil & Gas indices, while Nifty IT, Nifty Pharma and Nifty Realty indices were trading in the red.
Globally, Asian markets traded mostly higher, while the US stock market ended lower overnight, after hotter-than-expected US inflation data.
On the global geopolitical front, reports of progress in US-Iran peace talks also improved investors' risk-appetite. Easing tensions led a sharp decline in crude oil prices, with the Brent oil trading below $93 a barrel.
In November so far, the domestic benchmark indices have rallied over 8%, supported by robust FPI inflows worth more than Rs 53,100 crore and better-than-expected Q2 results.
Nifty Support And Resistance Levels
Gift Nifty was trading 0.76% higher at 23,579.50, indicating a positive start for domestic equities. Analysts noted that profit booking was witnessed during Wednesday's session following the FII-driven rally in the Nifty index, with the index forming a bearish candlestick on the daily chart. Additionally, the index is trading in the overbought zone, indicating the possibility of a mild retracement towards the 25,000–24,800 levels.
''On the upside, 25,500 is expected to act as an immediate resistance. However, the broader trend remains positive, and investors should continue to adopt a buy-on-dips approach. Any intermediate correction towards the mentioned support levels should be viewed as a buying opportunity rather than a trend reversal, as the Nifty is expected to resume its upward trajectory after a mild retracement,'' said Vatsal Bhuva, Technical Analyst at LKP Securities.
Bank Nifty Outlook
Bank Nifty closed forming a bearish candlestick on the daily chart and is currently trading in the overbought zone on both daily and hourly timeframes, indicating the possibility of an intermediate retracement from current levels. Following the strong run-up rally, the index may witness mild profit booking towards the 60,000–59,800 levels, according to analysts.
''The key support for the index is placed at 60,000 and 58,800, while 61,000 remains an immediate resistance. However, the broader trend remains positive; hence, investors should maintain a buy-on-dips strategy in Bank Nifty. The bullish momentum remains intact,'' said Bhuva.
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