Stock Market Update: Nifty 50, Sensex Set for Positive Opening on November 26

The positive performance of the stock market today is expected to continue into Wednesday's trading, as the Global Cues and Asian Market Sentiment have both improved. 

The GIFT Nifty is currently trading up 79 points above yesterday's closing price of 26,122. On Tuesday, the major benchmarks in the stock market fell for the third consecutive trading session, with the Nifty 50 falling below the key psychological level at 25,900 and the Sensex closing down 313 points to 84,587.01.

Sensex Outlook

As reflected in the daily chart, the short-term technical outlook for the Sensex remains weak and is characterized by the bearish candle. 

Analysts say that the Sensex continues to struggle to break through a major supply zone, which exists in the vicinity of 85,000-85,200, which is a significant level of resistance for the stock market. 

In the view of market professionals, until there is a clear break to the upside above this level, the stock market is likely to continue to show a high level of volatility.

Immediate support is at 84,300, and if the Sensex were to break below this level, it would drop to around 84,000. A strong definitive breakout above the level of 85,200 could create the potential for a target price in the area of 85,500-85,700.

Nifty 50 Outlook

For the Nifty 50, Tuesday represented a continuation of the negative sentiment with the formation of the third consecutive bearish candle, which continues to indicate selling pressure at the higher levels. 

While the short-term bearish sentiment continues, the longer-term bullish structure of the stock market remains intact. A very strong support level is at 25,800-25,700 area, which also coincides with the 20-day EMA. Immediate resistance is expected to be seen in the 26,000-26,050 area.

There is heavy call writing at the 26,000 strike, suggesting stiff resistance near that level. The maximum open interest is at 25,800. Analysts highlight that a close above 26,000 will be crucial for triggering short covering in the coming sessions.

Analysts suggest a buy-on-dips approach as long as Nifty holds above the longer-term support near 25,490.

Bank Nifty Outlook

Bank Nifty closed flat at 58,820, forming a small bearish candle with long upper wicks indicating selling pressure at higher levels. Support is seen around 58,580, and a break could take the index toward 58,000-57,800. 

On the upside, 59,440 remains a key resistance. The index is consolidating above its breakout region of 58,200-58,500, keeping broader bias positive if these levels sustain.

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Market Outlook 

Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, noted the weakness in frontline indices, saying, "Indian equities witnessed a volatile session on Tuesday, with the Nifty closing at 25,884 (-0.3%), recording losses for the last three sessions and trading with a subdued tone ahead of the monthly derivatives expiry." 

He added that despite the pressure on large caps, midcaps and small caps managed to post marginal gains of 0.3% and 0.2%, respectively.

Globally, optimism around a potential US rate cut in December provided support, but investors remain cautious ahead of the upcoming US inflation data, which may influence near-term volatility.