The Indian stock market opened sharply higher, extending its winning streak to a fifth consecutive session, as easing crude oil prices and prospects of further progress in US-Iran diplomatic negotiations drove domestic buying. Nifty 50 opened 417.45 points higher at 24,378.05 from the previous day’s close, while Bank Nifty started at 57,102.80, up 1,189.20 points. Sensex edged higher by 1,609.54 points to 78,910.94.

The broader indices ended higher and outperformed the benchmarks, with the Nifty midcap index adding 1.3% and the smallcap index rising 2%. The Indian rupee opened higher by 29 paise at Rs. 94.35 per dollar compared with the previous close of Rs. 94.64.

Foreign institutional investors (FIIs) extended their buying streak to a fourth consecutive session, purchasing equities worth Rs. 7,284 crore on November 4. Domestic institutional investors (DIIs) continued their selling for the fourth straight session, offloading equities worth Rs. 3,712 crore. 

Sensex Outlook

Sensex experienced a positive opening and maintained the same momentum throughout the day. The index formed a bullish candle on the daily chart, indicating that the uptrend is likely to continue.

“We are of the view that the short-term market texture is positive, but due to temporary overbought conditions, we could see range-bound activity at higher levels. For day traders, buying on intraday dips and selling on rallies would now be the ideal strategy,” said Shrikant Chouhan, Head of Equity Research, Kotak Neo.

On the downside, 78,000-77,500 would act as key support zones, while on the higher side, 79,000 would be the key resistance for the bulls. However, below 76,500, the sentiment could change. Below this level, traders may prefer to exit their long trading positions.

Nifty 50 Outlook

Nifty 50 extended its rally for the fifth consecutive session. The index continued its bullish momentum throughout the intraday session, indicating sustained buying strength at higher levels. 

The buying strength has helped the index sustain above the 20- and 50-day EMAs. On the daily charts, the index managed to close above the 200-day EMA level of 23,900, indicating a major reversal from the broader bearish trend. 

In the next few weeks, 24,300 to 24,400 remains the key resistance zone, while the previous breakout zone between 23,200 and 23,400 acts as a crucial support zone for the index.

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Bank Nifty Outlook

Bank Nifty also shows continued buying interest at lower levels. The index has reclaimed its 50-day moving average, while the positive divergence on the RSI has also been confirmed by price action, indicating an improvement in the index's underlying momentum.

Immediate support is placed in the 56,700-56,500 zone. A decisive break below 56,500 could witness short-term selling pressure and weaken the ongoing recovery. 

On the upside, 57,000-57,100 is the immediate resistance zone. A sustained breakout above 57,100 could extend the ongoing upmove toward 58,000. Overall, Bank Nifty is likely to maintain its positive bias as long as it holds above 56,000.