On November 8, Bank Nifty and Nifty 50 continued their decline, forming a bearish candlestick pattern for the second day in a row.
This suggests bearish momentum, with the index falling below its short-to-medium-term moving averages—a negative indicator of market sentiment.
The Nifty closed 51 points lower at 24,148, while Bank Nifty dropped 355 points to close at 51,561. Market breadth was unfavorable, with 1,762 shares declining against 718 advancing shares on the NSE.
Key Support and Resistance Levels for Nifty 50
- Immediate Support: The 24,000 level is crucial for Nifty, followed by the 23,800 zone. A fall below these levels could signal a disruption in chart patterns and potentially lead to further losses.
- Resistance Zones: Nifty faces a hurdle at 24,500, which experts believe could serve as a critical resistance. Breaking this level may improve the bullish outlook, while failure to breach it could sustain ongoing volatility.
Technical Analysis by Experts
Osho Krishan, Angel One
Osho Krishan, Senior Analyst at Angel One, observed that significant events like the U.S. elections and FOMC meeting added to market volatility.
From a technical perspective, Nifty remains within a defined range, creating resistance around the 24,400-24,500 levels.
For now, 24,000 remains a key support, and a decisive breakthrough above 24,500 could bring renewed momentum to the index.
On the options front, notable activity around the 24,000 Put and 24,300-24,500 Calls indicate key trading zones.
Strategy: Buy Nifty on dips around 24,000-23,900, set a stop-loss at 23,800, and book profits near 24,400-24,500.
Nagaraj Shetti, HDFC Securities
Nagaraj Shetti from HDFC Securities noted a negative candlestick pattern on Nifty’s daily chart, suggesting choppy movements with potential consolidation in the short term.
On the weekly chart, a high-wave candlestick reflects continued volatility. Shetti sees 23,800 as a vital support level, while the 24,500 level poses resistance.
Strategy: Buy Nifty on dips near 23,800, with a stop-loss at 23,700, targeting 24,000.
Rajesh Palviya, Axis Securities
Rajesh Palviya of Axis Securities stated that Nifty’s performance is contained within a broader range of 24,700-23,600.
Any breakout above 24,300 could lead to buying interest and potentially push the index toward 24,500-24,700.
However, a drop below 24,000 may increase selling pressure, driving it to the 23,800-23,600 range. The RSI indicator also reflects a negative bias.
Strategy: Sell Nifty around 24,250, with a stop-loss at 24,350, targeting 23,700.
Bank Nifty Holds Key Level, Awaits Breakout
Bank Nifty is attempting to hold its 51,000 support level, which could be critical for any upward rebound.
Experts highlight that a close below 51,000 may lead to increased selling, whereas a bounce-back could push the index toward the 52,000 mark.
The current resistance is around 52,500, with consolidation likely to continue unless a breakout occurs.
Technical Insights on Bank Nifty
Osho Krishan, Angel One
Krishan pointed out that Bank Nifty’s current setup reflects a sideways trend, with resistance at 52,500 and support at 51,000.
The Doji candlestick pattern suggests indecisiveness, and trading within this range could persist unless a decisive breakout happens.
Strategy: Buy Bank Nifty around 51,100-51,000 with a stop-loss at 50,800, aiming for a target of 52,000.
Nagaraj Shetti, HDFC Securities
According to Shetti, Bank Nifty experienced a pullback after a recent surge but has since slipped into a broader trading range. He identifies 51,000 as key support, with upside resistance at 52,000.
Strategy: Buy on dips near 51,000, with a stop-loss at 50,700, targeting 51,500.
Rajesh Palviya, Axis Securities
Palviya observes a bearish pattern on the weekly chart, indicating potential resistance at 51,750.
If Bank Nifty sustains above this level, it could move toward 52,000-52,300. However, a drop below 51,500 may expose it to further downside risks.
Strategy: Sell around 51,800, with a stop-loss at 52,000, targeting 51,300.
Conclusion: Volatility Likely to Persist
The Nifty 50 and Bank Nifty are experiencing heightened volatility due to global events and shifting technical patterns.
Traders are urged to remain cautious, with short-term support and resistance levels dictating potential entry and exit points.
For Nifty, the 24,000 level remains critical support, while Bank Nifty’s defense of the 51,000 level is essential to avoid a larger sell-off.
Experts recommend a balanced approach of buying at support levels and selling near resistance until a clear breakout emerges.
