Trade Setup for November 3: Can Nifty Bounce Back After Ending Four-Week Winning Run?
Nifty remained weak throughout Friday’s session after failing to sustain above 25,950. Bears took control once the index was unable to move decisively past this level.
Nifty Technical Analysis
The Nifty 50 index has been facing strong resistance at the 25,950 level, which has been a significant hurdle for the bulls. The inability to sustain above this level has led to a bearish sentiment in the market, with the index ending its four-week winning run.
According to technical analysts, the Nifty 50 index is expected to face strong support at the 25,500 level, and a break below this level could lead to a further decline to 25,200. On the upside, the index is expected to face strong resistance at the 26,000 level, and a break above this level could lead to a rally to 26,200.
Top Stocks in Focus
Several stocks are expected to be in focus on November 3, including HDFC Bank, ICICI Bank, and Axis Bank, which are scheduled to announce their Q1 results. Other stocks that could be in focus include Reliance Industries, Tata Consultancy Services, and Infosys.
Investor Sentiment
The investor sentiment has been bearish in the last few trading sessions, with the Nifty 50 index facing strong resistance at the 25,950 level. However, the bulls are expected to make a comeback, and the index could see a bounce back to 26,000.
According to a survey by CNBC-TV18, 60% of the investors expect the Nifty 50 index to bounce back to 26,000, while 40% expect the index to decline to 25,500.
Global Market Cues
The global markets have been volatile in the last few trading sessions, with the Dow Jones index facing strong resistance at the 34,000 level. The NASDAQ index has been facing strong resistance at the 14,500 level, and the S&P 500 index has been facing strong resistance at the 4,300 level.
The Indian markets are expected to follow the global market cues, and the Nifty 50 index could see a bounce back to 26,000 if the global markets see a rally.
Conclusion
In conclusion, the Nifty 50 index is expected to bounce back to 26,000 after ending its four-week winning run. The bulls are expected to make a comeback, and the index could see a rally to 26,200. However, the bears are expected to make a comeback, and the index could see a decline to 25,500.
Investors are advised to follow the CNBC-TV18 survey and expect the Nifty 50 index to bounce back to 26,000. They are also advised to keep an eye on the global market cues and the top stocks in focus, including HDFC Bank, ICICI Bank, and Axis Bank.