- NSE Nifty 50 is expected to open positively after rebounding from key support levels last week
- Sensex rose 308.49 points to 74,459.53 and Nifty 50 gained 116.35 points to 23,053.10 on October 30
- Resistance for Nifty is at 23,200, with potential upside to 24,000 if this level is decisively crossed
The NSE Nifty 50 is expected to open on a positive note on Nov. 2 after staging a strong rebound from key long-term support levels last week. Technical indicators suggest the benchmark index has improved its near-term structure after breaking out of a consolidation range, with traders now watching whether it can decisively cross the 23,200 resistance zone.
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The Indian stock market benchmark indices, the Sensex and Nifty 50, ended higher on Friday, October 30, the final trading session of the month, led by gains in IT, pharma and healthcare stocks.
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The Sensex gained 308.49 points, or 0.42%, to close at 74,459.53, while the Nifty 50 settled 116.35 points, or 0.51%, higher at 23,053.10. The Bank Nifty index slipped 222.70 points, or 0.41%, to end at 54,686.95.
According to Choice Institutional Equities, immediate resistance is placed at 23,200, which coincides with a cluster of key daily moving averages. A decisive breakout above this level could open the doors for a move towards 23,700-24,000, where the 100-week EMA and 200-day EMA are positioned.
On the downside, immediate support is seen at 22,850, followed by the crucial 22,600-22,400 zone, which is reinforced by the 200-week EMA and a rising trendline.
Analysts recommend a selective buy-on-dips approach as long as the index holds above key support levels.
Technically, the Nifty has rebounded strongly from the 200-week EMA and rising trendline support before breaking out of its recent sideways consolidation phase. The move has improved the short-term technical outlook and points to strengthening market sentiment.
The weekly RSI has recovered to 43.35 and moved slightly above its average, indicating improving momentum. However, it remains below the neutral 50 mark, suggesting room for further upside confirmation.
Bank Nifty
Bank Nifty witnessed volatility through the week, initially falling to 53,626 before recovering nearly 1,440 points to a high of 55,068. The index eventually closed at 54,686.95.
Going ahead, Bank Nifty is likely to maintain a sideways-to-bullish bias provided it sustains above the 54,500 support zone. A move above 55,000 could accelerate recovery towards the key resistance area of 55,300-55,700.
With Nifty reclaiming crucial support levels and broader market participation improving, attention now shifts to the 23,200 mark. A successful breakout could pave the way for a test of the psychologically important 24,000 level in the sessions ahead.
The weekly chart reflects buying interest emerging at lower levels, with the formation of a long lower shadow indicating support from market participants. However, Bank Nifty continues to trade below its 50-week EMA near 56,201, suggesting the broader trend has not yet fully turned positive.
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The index remains comfortably above its 200-week EMA at around 50,764, which continues to act as a significant long-term support level.
Momentum indicators remain mildly weak, with the weekly RSI at 42.17 and below both its average and the neutral 50 mark. Analysts said a sustained improvement in RSI will be necessary to strengthen bullish momentum further.
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