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Below The Pre-market comment on November 06 2023 By Mandar Bhojane, Research Analyst, Choice Broking

On November 6, the benchmark Sensex and Nifty are expected to open slightly higher based on trends in the GIFT Nifty, suggesting a positive start for the broader index with an anticipated gain of 15 points.

On November 3, the BSE Sensex exhibited a notable upswing, surging by 283 points to achieve a level of 64,364, while the Nifty50 also posted gains, rising by 97 points to reach 19,231. Notably, the daily charts for the Nifty50 featured a Spinning Top candlestick pattern, signaling a state of uncertainty and hesitation among market participants, both buyers and sellers, regarding the direction of future market trends.

The Nifty index is likely to experience a trading range between 19,000 and 19,300, with a slight inclination toward sideways to mildly positive movements. If the index manages to break decisively above the upper limit of this range, it could open the path for further advances towards the 19,500 level. Conversely, if it sustains a decline below the significant psychological support at 19,000, it may trigger increased selling pressure, potentially leading to a decline to the 18,800-18,700 range.

In the case of the BankNifty, the daily chart shows the formation of three consecutive doji candles at the bottom, which is often considered a sign of a potential reversal. The 50-day exponential moving average (EMA) is located near the 44,000 level, which could act as resistance. On the flip side, the 43,000 level is expected to provide support for the BankNifty. In the interim, the price is likely to remain within a sideways trading range.

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