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Market Closing Commentary

Indian equity markets finished on a subdued note on November 6th , with the Nifty retreating toward the 25,500 level as overall sentiment remained weak and investors adopted a risk-off approach. Attention has now shifted to key U.S. economic indicators due this week, particularly the ISM Manufacturing and Services PMI readings. These data points are expected to provide cues on global growth trends and could play a significant role in shaping market sentiment worldwide. By the close, the Sensex slipped 148 points (0.18%) to end at 83,311, while the Nifty declined 88 points (0.34%) to settle at 25,510. Across sectors, metal, power, realty, and media indices saw notable pressure, falling between 1.5% - 2.5%. In contrast, auto and IT sectors managed to buck the trend, recording marginal gains. In the broader market space, the Midcap index dropped 0.95%, while the Small-capindex saw a steeper fall of 1.39%, reflecting continued profit booking and cautious positioning among investors.

Nifty Outlook

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 . Over the past ten trading sessions, the Nifty has undergone a corrective retracement of approximately 600 points, effectively unwinding the overbought readings that had emerged on the daily stochastic oscillator following a sharp 1,500-point rally over the preceding four weeks. Technically, the index is now 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. Beyond this, the 26,100 level, which represents the twin highs of the past two weeks, would serve as the next key resistance and potential trigger for a renewed leg higher.

Bank Nifty Outlook

The index formed a bear candle with a lower high and a lower low signaling consolidation amid stock specific action. Going ahead, index to extend consolidation of the last two weeks in the range of 57300-58500 thus forming base after the next leg of up move. A close below 57300 will open downside towards the key support area of 56,800–56,500. On the higher key resistance is placed at 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). Overall, the outlook remains positive, and current pullbacks should be viewed as buying opportunities within these support areas. PSU Banking stocks to extend the recent outperformance.

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