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Market Closing Commentary

Indian benchmark indices closed on a firm note amid choppy trade session on November 11th , with Nifty near 25,700 marks. Investors are now focused on the upcoming domestic inflation print, where a sustained cooling in food prices is expected to drive further moderation, strengthening hopes of additional policy easing by the RBI. At close, the Sensex was up 335.97 points or 0.40 percent at 83,871.32, and the Nifty was up 120.6 points or 0.47 percent at 25,694.95. In the broader markets, midcap index gained by 0.50% and Small-cap indices ended marginally lower by 0.21%. Across sectors, PSU Bank and Realty registered marginal dips of 0.3% and 0.16%, respectively. On the positive side, IT and Auto gained roughly 1% apiece, and Metals rose 0.7%,underscoring broad-based strength across cyclical pockets.

Nifty Outlook

Nifty formed a sizable bullish candle on the daily chart, posting a higher high, indicating continued buying interest for the 3rd session in a row from the 50-day EMA. Looking ahead, we expect the index to maintain positive bias and gradually head towards the immediate resistance at 25,850 and eventually towards the recent 52-week high of 26,100. On the downside, the support zone of 25,400–25,200 is likely to hold.

Buying interest has recently picked up from the key support zone of 25,200–25,400, which aligns with the 50-day EMA, the previous breakout level, and the 50% retracement of the earlier up move (24,587–26,104). Additionally, the daily stochastic oscillator has recently given a fresh buy signal by crossing above its 3-period average after recovering from oversold levels, reinforcing the positive outlook.

Bank Nifty Outlook

The index traded within a range with positive bias, forming a bullish candle with a long lower shadow, indicating buying demand for the 3rd session in a row from the lower band of the recent consolidation. Going forward, the index is expected to maintain a positive bias and move towards the all-time high and the upper band of the recent consolidation zone around 58,577. A decisive move above this level could open the door for further upside towards 59,000 in the coming weeks. On the downside, the lower band of the consolidation range at 57,300–57,100, which coincides with the recent breakout zone and the 20-day EMA, is likely to act as a strong support area.

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