Nifty Finds Support At 25,200–25,400: Trade Setup For Nov. 11
The NSE Nifty 50 is expected to find support in the range of 25,200-25,400, according to analysts’ statements on Monday. This comes as traders adopt a cautious stance ahead of key triggers, leading to a range-bound movement in the market.
According to Bajaj Broking Research, the Nifty is expected 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. Nifty technical analysis suggests that the 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.
Range-Bound Movement Ahead
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.
A buy on dips strategy is favoured by Samco Securities 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.
Bank Nifty Index
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% 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. 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.
Outlook Remains Positive
The outlook remains positive, and current consolidation should be viewed as buying opportunities within the support areas, according to Bajaj Broking. It sees PSU Banking stocks extending recent outperformance.
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. For more information on Nifty companies, visit our website.
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.
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. For more information on Indian stock market news, visit our website.
Conclusion
In conclusion, the Nifty is expected to find support in the range of 25,200-25,400, according to analysts’ statements on Monday. The index is expected to hold above the support area 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.
Traders are advised to adopt a cautious stance ahead of key triggers, and a buy on dips strategy is favoured as long as the index sustains above 25,500. For more information on stock market tips, visit our website.