The Indian stock market opened flat as AI investment concerns wiped out USD 2.5 trillion from the US market. Nifty 50 opened 1.6 points higher at 24,538.20 from the previous day’s close, while Bank Nifty started at 57,812.90, up 39.25 points. Sensex edged higher by 103.65 points to 79,413.66.

The broader indices ended higher but underperformed the benchmarks, with the Nifty midcap index gaining 1.8% and the smallcap index rising 0.5%.

Foreign institutional investors (FIIs) extended their buying streak for the fifth consecutive session on November 5, purchasing equities worth Rs. 14,974 crore. Conversely, domestic institutional investors (DIIs) remained net sellers, offloading equities worth Rs. 10,444 crore. The Indian rupee opened lower at Rs. 94.51 per dollar on Friday versus the previous close of Rs. 94.47.

Sensex Outlook

Sensex opened with a strong upward gap and maintained positive momentum throughout the day. It formed a strong bullish candle, and on intraday charts, it is maintaining a higher-high and higher-low formation, which supports a further uptrend from the current levels. 

“For day traders, 78,700 would act as a key support level. As long as the market is trading 

above this level, bullish sentiment is likely to continue. On the higher side, the rally could continue till 79,800-80,000. On the flip side, below 78,700, the correction could continue to 78,500-78,200,” said Shrikant Chouhan, Head of Equity Research, Kotak Neo.

Nifty 50 Outlook

Nifty 50 strengthened its technical outlook by reclaiming all key moving averages on the daily chart, indicating a bullish trend reversal. RSI has entered the overbought zone near 75, indicating the possibility of near-term profit booking or consolidation. However, the broader momentum remains positive. 

Any dip towards 24,200 could act as immediate support, while 24,000 remains crucial positional support. On the upside, resistance is placed at 24,800 and 25,000. A buy-the-dip strategy remains advisable.

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Bank Nifty Outlook

Bank Nifty broke out above its triangular consolidation zone that had been in place since June 3, following a gap-up open. The index is now trading above its short-, medium-, and long-term moving averages. 

Immediate resistance is placed near 58,100. A sustained move above this level could open the door for further upside towards 58,900 and 59,800, while key support can be seen in the 57,300 - 57,000 area.