Trade Setup For Nov 19: Nifty's Key Support Shifts To 25,700 As Six-Day Rally Snaps
Key support is now expected in the 25,800 to 25,750 zone, which is anticipated to provide a robust safety net.
The NSE Nifty 50 ended its six-day winning streak on Nov. 18, closing lower amid profit booking but managed to hold slightly above the 25,900 level.
Key support is now expected in the 25,800 to 25,750 zone, which is anticipated to provide a robust safety net, according to Osho Krishan, Chief Manager, Technical and Derivative research at Angel One. Shrikant Chouhan views the 20-day Simple Moving Average at around 25,800 as a key support zone. Below this, the market could slip to 25,650.
Bajaj Broking Research places key support slightly lower at the 25,700 to 25,600 zone, citing the confluence of a previous gap area and the 20-day Exponential Moving Average.
On the upside, the 26,000 to 26,100 zone is the immediate resistance for the bulls according to Osho Krishan, Angel One and Shrikant Chouhan from Kotak Securities.
"A successful breakout at this level could only pave the way for the next phase of the rally," Osho Krishan noted. A move above the last month's high of 26,100 will open further upside toward the all-time high of 26,277, according to Bajaj Broking.
The Bank Nifty showed relative strength compared to the Nifty, consolidating its position around the 59,000 level after its recent resolute breakout from the last four weeks' consolidation range.
The index has immediate resistance at 59,300 levels according to Bajaj Broking Research, with a move above this potentially opening upside towards 59,800 levels in the coming weeks.
Bajaj Broking Research highlighted that the prior resistance in the 58,300–58,000 zone is now likely to reverse its role and act as key support.
Market Recap
Indian benchmark indices snapped their six-day rally, with the Sensex slipping 277.93 points or down 0.33% to close at 84,673.02, and the Nifty declining 103.40 points or 0.40% to end at 25,910.05.
The Realty index was the biggest loser, shedding 1.95%, while IT and Metal indices also lost around 1% each. Broader markets mirrored the correction, with the Midcap index falling 0.59% and the Small-cap index dropping 1.05% as the market closed near the day's low.
Currency Check
Rupee closed stronger against the US Dollar. The local currency closed 3 paise stronger at 88.61 against US Dollar. It had closed at 88.64 a dollar on Monday.
