The Nifty 50 opened higher after indices wiped out their initial gains and ended in the red on Sunday's Muhurat Trading session. The first time in nine years that the benchmark indices closed lower during the special Diwali trading session. The Nifty 50 opened 90 points higher at 25,076.40, compared with the previous day's close. Bank Nifty started at 59,219.95, up 369.3 points. Sensex edged higher by 327.89 points to 81,327.29.
The Indian rupee opened higher at Rs. 94.125 per dollar on Monday versus the previous close of Rs. 93.9.
Foreign institutional investors (FIIs) extended their buying streak for the sixth consecutive session on November 6, purchasing equities worth Rs. 13,749.82 crore. Conversely, domestic institutional investors (DIIs) remained net sellers, offloading equities worth Rs. 5,968.70 crore.
Technically, the Sensex has moved above its 20-day, 50-day, 100-day and 200-day EMAs. The immediate resistance can be seen around 81,300-81,400, followed by 82,000. A sustained move above these levels could open the way for further upside.
“On the downside, 80,500-80,300 forms the immediate support zone, followed by 80,000-79,700. Holding above the immediate support range will be important to preserve the prevailing positive momentum. However, after the sharp weekly advance, some consolidation and profit-booking may emerge at higher levels. The near-term outlook remains bullish, while the elevated RSI warrants caution against chasing the rally at stretched levels,” said Ponmudi R, CEO of Enrich Money.
Nifty 50 formed a strong bullish candle and decisively broke above its falling trendline resistance and key moving averages, indicating notable improvement in short-term momentum.
Nifty's immediate trading range is placed at 24,800-25,200. The recent breakout has improved the near-term outlook, and sustained trading above the 25,000 psychological mark could support further upward momentum. However, the index will need to maintain its position above the breakout zone to extend the recovery, while a move below 24,800 may witness some profit booking.
Bank Nifty witnessed a strong bullish breakout after consolidating in the 54,000-57,000 range for months. The index formed a strong bullish candle, indicating fresh buying interest.
The 58,700-58,500 zone represents immediate support, followed by a stronger support zone at 57,600-57,400. On the upside, the 59,200-59,300 band is likely to act as immediate resistance, while a stronger hurdle lies within the bearish gap zone of 60,200-60,500.