Nifty 50, Sensex today: What to expect from Indian stock market in trade on November 6 ahead of US Election Results 2024
- Nifty 50, Sensex today: The trends on Gift Nifty indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 24,215 level, a discount of nearly 80 points from the Nifty futures’ previous close.
Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower on Wednesday ahead of the US election results 2024. The trends on Gift Nifty indicate a weak start for the Indian benchmark index. The Gift Nifty was trading around 24,215 level, a discount of nearly 80 points from the Nifty futures’ previous close.
On Tuesday, the domestic equity benchmark indices staged a solid recovery and ended sharply higher, with Nifty 50 closing above 24,200 level.
The Sensex rallied 694.39 points, or 0.88%, to close at 79,476.63, while the Nifty 50 settled 217.95 points, or 0.91%, higher at 24,213.30.
Nifty 50 formed a long bull candle on the daily chart, which is indicating a strong comeback of bulls after one day of decline.
“This market action is signaling a formation of a bullish Piercing line type candle pattern. This is a positive indication and needs further sustainable upmove to call this a bullish reversal pattern. The negative chart pattern like lower tops and bottoms is intact as per daily timeframe chart. A sustainable move only above 24,500 is expected to negate the bearish pattern,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
According to him, the underlying short-term trend of Nifty 50 is on the verge of reversal. A decisive move above 24,500 levels could open fresh upmove in the market and any weakness from here is expected to drag Nifty 50 down to 23,900 - 23,800 levels again, he added.
Here’s what to expect from Nifty 50 and Bank Nifty today:
Nifty OI Data
In the derivatives market, Nifty open interest (OI) data showed the highest OI on the call side at the 24,500 and 25,000 strike prices, while the put side registered peak OI at the 25,000 level.
“This configuration suggests that Nifty 50 faces resistance around the 24,500 level, and traders are preparing for potential gains if the index manages to hold above this crucial threshold,” said Mandar Bhojane, Research Analyst at Choice Broking.
Nifty 50 Prediction
Nifty 50 witnessed a decisive upside bounce from the lows on November 5 and closed the day higher by 217 points.
“Nifty has given a dead cat bounce from its support at 24,800 levels. Immediate resistance for the index is at 24,500 level, a close above which suggests a further rally towards 25,000 levels. The index has closed above the Keltner channel on the daily chart, however, on the weekly it's trading well below the lower band of the Keltner channel, indicating the bounce can be an opportunity to sell. The ADX average line has sloped up above 40 levels, an indication of exhortation of the fall, a pause in fall, or a small bounce can be expected,” said Dr. Praveen Dwarakanath, Vice President of Hedged.in.
According to him, options writer's data for this week's expiry showed a short covering of calls above 24,000 levels, which could be the reason for the bounce in the index as well.
“Most of the technical parameters are still in the oversold zone and short covering from current levels can be seen that can take the index towards 24,450 / 24,540 levels. On the lower side 24,000 / 23,800 will act as an immediate support zone for the index,” said Aditya Agarwal, Head of Derivatives & Technical Analysis at Sanctum Wealth.
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, noted that on the daily charts, Nifty 50 formed a Piercing line candle stick pattern which has bullish implications.
“A breach above the 24,368 would confirm that the trend has reversed. The daily momentum indicator has a positive crossover which is a buy signal. Thus, there are signs of a near term reversal note however it shall be confirmed only above 24,368,” Gedia said.
VLA Ambala, Co-Founder of Stock Market Today noted that while the current RSI stands at 68, with Nifty 50 trading below its 20-week EMA (Exponential Moving Average), it is still above the 20-month EMA.
“The current price action suggests that the two levels could converge soon. In such a situation, I advise adopting a ‘buy on dips’ strategy to make the most of the available opportunities. However, those with a long-term trading or investment view may benefit more from a 'sell on rise’ approach,” Ambala said.
She expects the Nifty 50 index to find support between 24,060 and 23,800 while facing resistance around 24,350 to 24,500 levels.
Bank Nifty Prediction
Bank Nifty jumped 992.00 points, or 1.94%, to close at 52,207.25 on Tuesday, forming a large green candlestick pattern.
“Bank Nifty has consolidated between a range of 51,000 to 52,400 levels. On the downside, the index is getting bought back, and on the upside, the index is sold into. A break of this range can signify a further price action. The momentum indicators on the weekly chart continue to show weakness in the index. However, the ADX average line on the weekly chart has just started rising from below 15 levels, indicating one of the trends is picking up. A break of the range in this case can be significant,” said Dr. Praveen Dwarakanath.
According to him, options writer's data showed increased short covering in the calls of 51,200 and above of expiry, which can also be the reason for yesterday’s bounce in the index.
Aditya Agarwal noted that Bank Nifty respected its support zone of 50,800 and saw short covering that took it above 52,200 levels.
“Short term outlook for Bank Nifty looks strong and on the higher side it can move towards 52,500 / 52,800 levels, whereas, on the lower side dip towards 51,740 / 51,400 can be used to initiate fresh longs,” Agarwal said.
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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