According to Anshul Jain, Head of Research at Lakshmishree, the Sensex is currently experiencing a pullback and trading below this critical support level after breaking above its all-time high of 84,089 and setting new highs.
Today's stock market: Following a robust October rise, the Sensex and Nifty eased, and Indian stocks began November on a muted tone Monday. Although positive quarterly earnings and monthly auto sales data helped limit losses, weakness in private banking and FMCG sectors pulled the benchmarks down.The NSE Nifty 50 slid 60.50 points, or 0.24 percent, to start at 25,661.60, while the S&P BSE Sensex fell 258 points, or 0.31 percent, to 83,680.70 at the opening.
The Nifty hit the 25,750 mark at 1 pm, while the Sensex increased slightly to reach 83,952.86.
Following conflicting signals from Asian rivals, markets began the day rather cautiously. An undercurrent of selective optimism among investors was reflected in the early support provided by fresh buying interest in PSU banks and real estate equities, which helped indices maintain a bullish bias in the opening session.
Following conflicting signals from Asian rivals, markets began the day rather cautiously. An undercurrent of selective optimism among investors was reflected in the early support provided by fresh buying interest in PSU banks and real estate equities, which helped indices maintain a bullish bias in the opening session.
Now that the Nifty 50 has moved from resistance to a strong support zone, it is still firmly above 25,660. On intraday drops, this level is anticipated to draw buying attention. Short-term weakening toward 25,450–25,500 might be invited by a clear hourly closing below 25,660, but maintaining above this range would support the bullish structure as a whole. A clear breach above 26,100 is anticipated to start the next leg of momentum toward 26,500. On the upside, resistance levels are located between 25,870 and 25,960 and 26,050. However, the weekly chart's recent shooting star and spinning top formations show hesitancy at higher levels, indicating modest profit booking prior to the subsequent directional move, according to Ponmudi R, CEO of Enrich Money.
Important key levels to keep an eye on in the near future for the Sensex
According to Anshul Jain, Head of Research at Lakshmishree, the Sensex is currently experiencing a pullback and trading below this critical support level after breaking above its all-time high of 84,089 and setting new highs.
A prolonged decline below 84,089 can lead to a more significant correction in the direction of 82,500. However, bulls are expected to recover control and push for new all-time highs soon if this breakdown proves to be a bear trap, as the current market structure indicates. There is still a good chance that this decline will be a brief shakeout rather than a trend reversal, according to Jain.
According to Anshul Jain, Head of Research at Lakshmishree, the Sensex is currently experiencing a pullback and trading below this critical support level after breaking above its all-time high of 84,089 and setting new highs.
A prolonged decline below 84,089 can lead to a more significant correction in the direction of 82,500. However, bulls are expected to recover control and push for new all-time highs soon if this breakdown proves to be a bear trap, as the current market structure indicates. There is still a good chance that this decline will be a brief shakeout rather than a trend reversal, according to Jain.
The Nifty 50
The Nifty index saw a 0.28 percent decrease from the conclusion of the previous week, closing at 25,722.10. The index shows a sideways setup on the weekly chart because it was unable to hold above the 25,800 barrier, suggesting that there may be a short-term retracement or consolidation.
Choice Broking's derivative analyst, Hardik Matalia, claims that the Nifty has immediate support at 25,600 and 25,500, which may present buying opportunities during losses.
Resistance on the upswing can be found at 25,800 and 26,000, with the latter serving as a significant obstacle. In the upcoming weeks, a positive advance might target the 26,100–26,300 zone if there is a sustained breakout above 26,000, according to Matalia.
The Bank Nifty
After a tumultuous trading day, the Bank Nifty closed the week at 57,776.35, down 696 points from its peak. When the index fell below the crucial 58,000 support level, it showed clear weakness.
According to Matalia, "a further correction towards 57,480–57,325 and possibly lower levels could be triggered if selling pressure reappears and the index decisively breaks below 57,600." 58,000 is the first resistance level on the upward, followed by 58,300 and 58,700.
Additionally, Matalia counseled investors to maintain discipline and a positive outlook in the foreseeable future. Failure to hold above this level could invite short-term weakness, but a clear closing above 58,000 would confirm bullish momentum and pave the way for additional rises.
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