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Nifty :25255

Technical Outlook

Day that was ..

Indian equity benchmarks extended their upward momentum with the Nifty 50 surging past the 25,400 mark in early trade before paring some gains into the afternoon session. Nifty settled the session at 25130, up 85 points or 0.35%. Market breadth remained in favour of advances wherein Smallcaps index rose 1.5% . On the sectoral front, Nifty PSU Bank led the rally along with Auto and Chemicals. Conversely, IT, Realty and Nifty Pharma lagged behind

Technical Outlook :

• Following a positive start to the truncated week, the index opened with a gap-up tracking declining crude oil prices and favorable global cues. However, profit-booking emerged near the 24,400 mark during the afternoon session, forming a long-bodied bearish candle with a small upper wick, indicating dwindling upward momentum.

• The Nifty has rallied more than 3,000 points over past thirteen session and retreated from 80% retracement of entire decline seen off Jan-26 high of 26373. Key point to highlight is that, over past 13 sessions, index has not closed below previous sessions low, thereby continuing its northbound journey towards immediate milestone of 25500.

• With the recent sharp up move daily and weekly stochastic oscillator has approached overbought territory, indicating couple of days breather at higher levels cannot be ruled out. Only a decisive close below previous session low of 25090 would indicate pause in ongoing upward momentum.

• On the downside, 24,300 now serves as an immediate technical cushion, marking the November 5 bullish gap (23,960–24,296)

Key drivers supporting constructive bias

• The Nifty arrested its eight-week corrective phase by defending its longterm 200-week EMA near the 22,180–22,182 lows, confirming a doublebottom reversal pattern and executing a decisive breakout.

• Over the past two to three weeks, the benchmark has completely retraced its 12-week decline (from 24,774 to 22,180), signaling a strong structural shift in trend.

• After lagging global peers during the AI-driven tech rally, Indian equities are benefiting from global capital rotation out of AI stocks.

• Mirroring the benchmark, Bank Nifty has recouped its 17-week decline in just two weeks. Given the banking sector's ~37% weightage in the Nifty, sustained strength in private and PSU banks remains a primary catalyst.

• Participation across the Nifty 500 universe has expanded sharply, with the proportion of stocks trading above their 50-day SMA climbing from 10% two weeks ago to 54%.

• Softening Brent crude oil prices and cooling US 10-year bond yields continue to provide a favorable macro backdrop. Any intraday dips or short-term pullbacks toward support levels should be viewed as incremental opportunities to accumulate high-quality, earnings-backed stocks

Intraday Rational :

• Trend – Formation of higher high low signifies positive bias

• Levels – Buy around 80% retracement of 2 days range

Nifty Bank : 60792

Technical Outlook

Day that was :

Bank Nifty ended the day on a positive note, up 1.76% at 60792 levels. Meanwhile, the Nifty PSU Bank relatively outperformed by gaining 2.9% for the day.

Technical Outlook :

• Index started the day with a gap-up opening and continued to move northward and achieved target of 61500. However, profit booking in second half led cool off in initial momentum. As a result, daily price action formed a bull candle, with higher high higher low indicating positive bias.

• The formation of higher high-low makes us reiterate our positive stance and expect Nifty to head towards 61700 in coming sessions. Overall bias remains positive until and unless Index closes below previous session low. Only a breach below previous session low (60376) will lead to breather in coming sessions. Stochastic Oscillator is in overbought condition (placed at 92). Consequently, a couple of days breather at higher levels cannot be entirely ruled out which would make market healthy

• On the downside, support is placed at 59000 levels being 50% retracement of last five days up move ( 56718- 61394).

• Nifty PSU Bank Index has formed strong bull candle with higher high higher low and sustaining above August breakout area indicating uptrend intact. Going ahead we expect it to head towards 9500 levels being 80% retracement of entire decline.(9918-7809).

• Intraday Rational :

• Trend - Robust recovery from key support of 53800 confirms strong support zone

• Levels : Buy around 80% retracement of 2 days range.

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