Trade Setup For Nov. 11: Nifty Finds Support At 25,200–25,400
The Nifty index has formed a bull candle on the daily chart with a higher high and higher low.
The NSE Nifty 50 is expected to find support in the range of 25,200-25,400, according to analysts' statements on Monday.
"Going ahead, we expect the index to hold above the support area of 25,200-25,400 and gradually head towards the immediate resistance of 25,850 and then towards the recent 52 weeks high of 26,100 in the coming weeks," Bajaj Broking Research said.
The Nifty appears poised for range-bound movement, according to Samco Securities, which credited this to traders adopting a cautious stance ahead of key triggers. The brokerage said that the 25,500–25,350 zone is likely to act as a strong support base, with the 25,650–25,750 zone being the immediate resistance cluster.
The Nifty index has formed a bull candle on the daily chart with a higher high and higher low, signalling follow-up buying to previous session pullback from the 50 days extended moving average, according to Bajaj Broking Research.
"Index is seen rebounding from the oversold territory as the daily stochastic has generated a buy signal, signaling moving above its three periods average thus supports the positive bias," the firm said.
Samco Securities favoured a buy-on-dips approach as long as the index sustains above 25,500. It further said that a decisive close above 25,750 could pave the way for a meaningful up-move toward the 25,900–26,000 levels.The Bank Nifty Index will see resistance at 58,577, according to Bajaj Broking.
"On the higher side, key resistance is placed at the recent all-time high of 58,577. A move above the same will open further upside towards 59,000 being the 138.2%," Bajaj Broking said.
"Fibonacci projection of the recent correction (57,628–53,561). While a close below 57,300 will open downside towards the key support area of 56,800–56,500," it added.
The Bank Nifty index continues to trade within a flag formation, suggesting a consolidation phase following the recent rebound from lower levels, according to Samco Securities
"On the technical front, the index has been holding above its 9-day EMA, placed near 57,800, which is acting as a short-term support and helping maintain a constructive undertone," it said.
Bajaj Broking said that the outlook remains positive, and current consolidation should be viewed as buying opportunities within the support areas. It sees PSU Banking stocks extending recent outperformance.
Market Recap
The Nifty ended in the green, closing above the 25,500 mark, led by gains in Infosys and HCL Tech. Trent and Tata Consumer Products were the biggest drags.
The Nifty Midcap 150 also closed higher, with Uno Minda and Nykaa leading the gains, while the Nifty Smallcap 250 ended flat, supported by NALCO and Balrampur Chini.
Sectorally, Nifty IT emerged as the top gainer, driven by strength in Infosys and HCL Tech, while Nifty Media was the biggest loser. Nifty Realty fell for the fourth straight session, weighed down by Sobha and Raymond.
Currency Recap
The rupee fell six paise to 88.71 against the US dollar on Friday. The yield on the 10-year bond ended three points lower to 6.49.
