Trade Setup for Nov 7: Nifty Support Slips to 25,500—25,300 As Analysts See Further Weakness
The Indian stock market ended weak for a second session straight on Thursday, with the Nifty falling below the critical 21EMA on the daily timeframe, indicating weakness, as per Rupak De, Senior Technical Analyst at LKP Securities.
The Nifty technical analysis suggests that the index formed a bearish candlestick pattern with a lower high and lower low for the fifth session in a row, highlighting extended profit booking, said Bajaj Broking Research.
Nifty Support and Resistance Levels
The research firm added that the index seems to be approaching a crucial demand zone between 25,500 and 25,300, which is expected to act as a strong support base. A decisive formation of a higher high and higher low will signal a pause in the current decline and open pullback towards immediate resistance of 25,850. If this happens, the next key resistance will be placed at 26,100 levels.
Shrikant Chouhan, Head Equity Research, Kotak Securities reiterated weakness in the charts and said that the current market texture is weak, but a fresh sell-off is possible only after the dismissal of 25,450/83,100. Whereas equity market research by Rajesh Bhosale, Equity Technical Analyst, Angel One advised investors to refrain from aggressive bets on either side of the market and to allow for stabilization to gain a clearer understanding of the situation.
Bank Nifty Outlook
Bank Nifty will extend its consolidation phase as the charts have formed a bear candle with a lower high and a lower low, signaling consolidation amid stock-specific action, as per Bajaj Broking Research. A close below 57,300 will open downside towards the key support area of 56,800–56,500. On the higher key resistance is placed at the recent all-time high of 58,577.
Indian equity market closed lower for a second straight session with the Nifty ending 0.34% lower at 25,509.70 and the Sensex ending 0.18% lower at 83,311.01. For more information on Sensex news and Nifty today, please visit our website.
Investing in the Indian Stock Market
Investing in the Indian stock market can be challenging, especially for new investors. However, with the right knowledge and stock market tips, investors can make informed decisions and achieve their financial goals. It is essential to stay informed about domestic and global developments that may affect our markets, as per Rajesh Bhosale.
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Conclusion
In conclusion, the Indian stock market ended weak for a second session straight, with the Nifty falling below the critical 21EMA on the daily timeframe, indicating weakness. The index seems to be approaching a crucial demand zone between 25,500 and 25,300, which is expected to act as a strong support base. Investors should refrain from aggressive bets on either side of the market and allow for stabilization to gain a clearer understanding of the situation.