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Below the Quote on Pre-market Comment by Ameya Ranadive CMT CFTe, Research Analyst, Choice Broking

Morning Outlook for 31st Oct 2023

Today, the benchmark indices Sensex and Nifty are anticipated to commence trading on a slightly positive note, as indicated by trends in the GIFT Nifty. Notably, the Nifty exhibited a robust recovery in the preceding session, culminating at its highest level, surpassing the 19100 mark. This surge witnessed a commendable 200-point rebound from its intraday low. A significant support level for the Nifty rests at 18840, coinciding with its 200-day Exponential Moving Average (EMA). 

Over the past three days, the Nifty has demonstrated a consistent pattern of attaining higher highs and higher lows, indicative of a subtle shift in market sentiment. This is further substantiated by the Relative Strength Index (RSI) rebounding from oversold levels of 27. Looking ahead, the Nifty is bolstered by support zones situated between 18850 and 19000. Should a substantial pullback materialize, there is potential for the index to ascend towards the range of 19300 to 19450 in the forthcoming sessions.

In contrast, the bearish sentiment persists in the Bank Nifty, which continues to trade below its crucial 200-day EMA, currently positioned at 43260. The support level for the Bank Nifty is established at 42150, while resistance is likely to be encountered within the 43500 to 43800 range.

Given the unconfirmed trend, adopting a stock-specific approach is advised for prudent market participation.

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