Stock Market Update: Nifty 50, Sensex Likely to Open Flat-to-Positive; Bank Nifty Shows Strength

As indicated by early cues from the Gift Nifty trading near 25,606, with a premium of about 28 points over the last close, the Indian stock market is anticipated to start on a flat-to-positive note on Monday, November 10.

On Friday, the benchmark indices declined for the third consecutive session, with Sensex closing at 83,216.28, down 94.73 points (0.11%), and Nifty 50 closing at 25,492.30, down 17.40 points (0.07%).

Sensex Outlook

Sensex formed a bullish hammer candle on the daily chart, signaling renewed buying interest near its 50-day EMA at 82,700.

The 82,700-82,600 range will serve as a critical support zone, while resistance is seen at 83,800-83,900. A strong breakout above 83,900 could open the way toward 84,500-85,000.

There is consensus among market analysts that strength at these levels may give rise to bullish momentum, with a focus on follow-through buying in the coming sessions. 

Nifty 50 Outlook

Nifty 50 held its support of 25,450 and managed to improve slightly, which formed a small bullish candle that indicates strength.

Inherent in international technical indicators, such as RSI (49), point to being neutral, but with potential upside. Resistance levels are observed at 25,750-25,800, and a clear breakout over this range may bring a bullish trend targeting 26,100-26,300.

On the downside, there is strong support at 25,300-25,350. Analysts maintain that the overall market structure remains constructive, with traders being encouraged to buy on dips while Nifty stays at 25,160.

Bank Nifty Outlook

Bank Nifty closed 322.55 points (0.56%) higher at 57,876.80 on Friday, forming a bullish engulfing pattern that highlights improving sentiment. 

Support is seen at the 57,400-57,500 zone, while resistance is at 58,200-58,300. A strong close above 58,300 could pave the way toward 59,000-59,600 in the near term.

A buy-on-dips strategy is recommended as long as the index stays above 57,150, with banking stocks expected to lead the next phase of the market’s upward momentum.

Also Read: US Stock Market Today: Dow Jones Dips 0.6% & NASDAQ Slips 1.8%, as Tech Valuations Face Scrutiny and Shutdown Delays Key US Data

Market View: Consolidation with Positive Bias

On a general basis, the market looks good with a positive backdrop due to a solid fundamentals perspective in banks, complemented by technical indicators which provide backing based on the fact that they have cooled off.

Investors will be looking for sustainability as global trade sentiment is evaluated ahead of potential updates on US fiscal spending, along with macroeconomic data.

If we can sustain any momentum above these key resistance zones, then we may see a resumption of a short-term rally in the indices.