Negative Opening Expected Amid Global and Domestic Concerns
The Indian stock market is likely to begin on a subdued note on November 26, with the Nifty 50 expected to open in the red. Analysts attribute this to weak global cues, foreign capital outflows, and lingering geopolitical tensions. Trends in the Gift Nifty indicate a 65-point discount from the previous close, pointing to selling pressure despite recent market gains.
The benchmark Nifty 50 recently surged nearly 4% over two sessions, driven by positive state election outcomes, which bolstered hopes of political stability and potential government spending in the fiscal year’s second half. However, subdued Q2 earnings and a lack of fresh triggers are weighing on market sentiment. On the technical front, the index’s move above the 21-day exponential moving average (EMA) offers some support, but challenges remain.
Stock Market expert Rupak De from LKP Securities highlights a bullish crossover in the RSI, suggesting a short-term positive trend. He forecasts resistance at 24,500, with support levels at 23,950–24,000. Traders are advised to adopt a strategy of buying on dips to capitalize on market movements.
Nifty 50: Resistance Levels and Market Sentiment
Analysts are closely monitoring key resistance and support levels for the Nifty 50. According to Praveen Dwarakanath, Vice President at Hedged.in, the formation of a Doji candle in the previous session indicates uncertainty. He advises caution unless the index sustains a close above 24,350, suggesting a “sell on the rise” strategy for now.
Dwarakanath adds that weekly momentum indicators point to potential upside towards the immediate resistance at 23,350. Options data reflects increased put writing at the 24,300 level, signaling optimism among traders. VLA Ambala, co-founder of Stock Market Today, notes that despite uncertainty, support levels are expected to hold at 24,050 and 23,820, with resistance around 24,485 and 24,550.
Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, anticipates further retracement of the recent fall in Nifty 50, with potential upside towards 24,770, aligning with the 50% Fibonacci retracement level. Dips to the 24,070–24,120 zone could present buying opportunities.
Bank Nifty: Momentum Points to Further Gains
The Bank Nifty index saw a robust 2.10% jump, closing at 52,207.50. Analysts predict continued upward momentum, with immediate resistance at 52,900. Dwarakanath highlights that the index has broken above the mid-Bollinger band on the daily chart, signaling further strength. Increased put writing at the 52,000 level supports a bullish outlook, with dips below 51,500 considered buying opportunities.
Gedia also sees potential for the Bank Nifty to rise toward 52,680–52,820, supported by Fibonacci retracement levels and a gap formed on October 3. However, some consolidation may follow the sharp up-move, suggesting traders should prepare for measured gains in the coming sessions.
As global and domestic factors weigh on Stock Market sentiment, traders are advised to stay vigilant, leveraging technical insights to navigate the uncertain terrain.
