Nifty 50, Sensex today: What to expect from Indian stock market in trade on November 4
- Nifty 50, Sensex today: The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,315 level, a discount of nearly 70 points from the Nifty futures’ previous close.
Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open on a weak note Monday amid cautiousness in global peers ahead of US Presidential Elections.
The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,315 level, a discount of nearly 70 points from the Nifty futures’ previous close.
On Friday, the Indian stock market indices ended the special Diwali Muhurat trading session higher led by strong gains across the board.
The Sensex rose 335.06 points, or 0.42%, to close at 79,724.12, while the Nifty 50 settled 99.00 points, or 0.41%, higher at 24,304.35.
Nifty 50 formed an inside day pattern on the daily chart and remains below the crucial 20 and 50 SMAs, with a bearish crossover of the same.
“Nifty 50 has been a muted week with mild recovery in stocks, as the number of stocks above the short-term 10 and 20 moving averages saw an uptick. However, on a higher timeframe, the breadth largely remains negative, while the 20-day advance-decline continues to be in oversold levels,” said Lovelesh Sharma , Consultant at SAS Online.
According to him, the price action on the lower timeframe suggests a contraction in price action, with a range between 24,500 and 24,150. In a lower highs, lower lows formation with multiple resistances at higher levels, the price suggests 24,500 as the line in the sand for bears to hold. The 20 and 50 SMAs are placed at 24,330 to 24,344, respectively. So, multiple resistances, along with a global event, make key data such as price and OI very important, he added.
Here’s what to expect from Nifty 50 and Bank Nifty today.
Nifty 50 Prediction
Nifty 50 gained 99 points to close above the 24,300 level on November 1, forming a a Doji-like candlestick pattern on the daily charts.
“Nifty 50 closed last week with a modest gain, forming an inside candle on the weekly charts. The key resistance is at 24,500; a breakout above this level may trigger a rally towards 24,800. Conversely, if Nifty breaks below 24,100, it could experience further selling pressure, possibly testing the 23,800 level. The market remains under pressure, suggesting a cautious stance. The strategy remains to sell on any rise until a decisive breakout above resistance confirms a bullish reversal,” said Palka Arora Chopra, Director of Master Capital Services Ltd.
According to Chopra, traders should watch for these key levels, with a focus on risk management amid ongoing market volatility.
Sharma noted on the downside, support is placed at 24,150 and 24,110, which are its swing lows.
“Below that, we may see extended selling toward 23,600 and 23,150 levels. We maintain a sell-on-rise strategy for Nifty 50 unless we witness a breadth thrust reading. OI analysis for Nifty points to a concentrated range of 24,500, where a short buildup is seen, while fresh long buildup has been observed at 24,000-24,100 levels. IV at above 16 levels indicates a move of more than a percent on an intraday basis,” Sharma said.
Bank Nifty Prediction
Bank Nifty gained 198.55 points, or 0.39%, to close at 51,673.90 on Friday, forming a bullish candlestick pattern on the daily charts.
“Bank Nifty displayed strength last week, closing with a 1.75% gain and finding support near the 51,000 level. A breakdown below this support could increase selling pressure, potentially pulling the index down toward 50,500. On the upside, buying interest is likely to emerge only above the 51,800 which may take the index towards 52,300 levels. Until then, the market may remain range-bound between 51,000 and 52,300,” said Chopra.
Given this setup, Chopra suggests adopting a “sell on rise” strategy, focusing on shorting near resistance levels. Traders should stay alert for a breakout or breakdown from this range to confirm further directional movement.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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