Nifty 50, Sensex today: What to expect from Indian stock market in trade on Nov 7 after Donald Trump wins US Election

The Indian stock market benchmark indices, Sensex and Nifty 50, are likely to open lower and remain volatile on Thursday amid mixed global market cues.

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 24,450 level, a discount of nearly 140 points from the Nifty futures’ previous close.

On Wednesday, the domestic equity market indices ended over 1% higher each, with the Nifty 50 rising above the 24,400 level.

The Sensex surged 901.50 points, or 1.13%, to close at 80,378.13, while the Nifty 50 settled 270.75 points, or 1.12%, higher at 24,484.05.

Nifty 50 formed a long bull candle on the daily chart, which is back-to-back for the two sessions.

“The present upside bounce of the last couple of sessions is confirming a formation of a crucial bottom reversal pattern around 23,800 levels. Hence, a decisive move above the key overhead resistance of 24,500 could open more upside ahead. Present reversal in Nifty from the lows is also signaling a formation of larger degree higher bottom formation as per weekly timeframe chart. This is a positive indication and more upside from here could confirm the higher bottom reversal,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

According to him, the underlying short-term trend of Nifty 50 continues to be positive and a sharp upside breakout of immediate resistance of 24,500 levels is likely to open the next upside target of 25,000 mark in a quick period of time.

Here’s what to expect from Nifty 50 and Bank Nifty today:

Nifty OI Data

Nifty Open Interest (OI) data reveals the highest OI on the call side at the 24,600 and 24,800 strike prices, representing significant resistance levels. On the put side, OI concentration at the 24,400 and 24,200 strike prices identifies these as key support levels, said Hardik Matalia, Research Analyst at Choice Broking.

Nifty 50 Prediction

Nifty 50 continued with a decisive follow-through upmove on November 6 and closed the day higher by 270 points.

Nifty 50 closed near its resistance zone of 24,500 and a close above that can trigger another round of short covering that can drive it towards 24,700 in the short term. On the lower side, Nifty 50 will find immediate support around 24,360 / 24,280 levels,” said Aditya Agarwal, Head of Derivatives & Technical Analysis at Sanctum Wealth.

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas, noted that on the daily charts, the Nifty has violated the lower top lower bottom formation on the daily charts suggesting a trend reversal.

“The daily momentum indicator has a positive crossover which is a buy signal. Thus, both price and momentum indicators suggest that the upmove is likely to continue towards 24,756 – 25,000 which coincide with the 40 day average and the 38.2% Fibonacci retracement level and 25,000 has the highest concentration on the Call side. Thus, any intraday dips or pullbacks towards 24,400 – 24,350 should be used as an opportunity to go long,” Gedia said.

According to Dr. Praveen Dwarakanath, Vice President of Hedged.in, the immediate resistance for the Nifty 50 index is at 24,500 level, a close above which suggests a further rally towards 25,000 levels.

“The index has closed above 10 DMA but got rejected at the 20 DMA, indicating the 24,500 level is critical to be taken off for any further move on the upside. The ADX average line has sloped up above 40 levels, with the ADX DI- line sloping down, indicating the momentum on the upside is picking up. Options writer's data for this week's expiry showed writing in Puts below 24,500 levels, indicating the likely close of Nifty around 24,500 levels,” said Dwarakanath.

Bank Nifty Prediction

Bank Nifty index rallied 110.15 points, or 0.21%, to close at 52,317.40 on Wednesday, forming a bearish candlestick pattern on the daily charts.

“Bank Nifty consolidated in a narrow band of 200 points for most part of the day and finally closed around 52,300. On the higher side, Bank Nifty has stiff resistance between 52,500 - 52,600 and a close above that can take it towards 53,200 / 53,600 levels. Structure for Bank Nifty is positive and a dip towards 52,000 / 51,740 can be used to initiate fresh longs,” said Aditya Agarwal.

According to Jatin Gedia, the undertone for Bank Nifty remains positive. He noted that there was a gap area in the range 52,800 – 52,900 which is acting as a resistance which once crossed could lead to an upmove towards 53,500. On the downside, crucial support is placed at 51,760 – 51,700 zones.

Dr. Praveen Dwarakanath said that the Bank Nifty was weaker compared to Nifty 50 and got rejected at its immediate resistance at 52,500 levels.

“A break above 52,500 can take the index to 53,200 and later to 54,000 levels. The momentum indicators on the daily chart show an upside in the index. The ADX average line on the daily chart is sloping upside with the fall in the ADX DI+ line, indicating momentum on the upside to continue. Options writer's data showed increased short covering in the calls of 52.000 in the monthly expiry, indicating an upside potential in the index,” said Dwarakanath.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.