Stock Market Update: Nifty 50, Sensex Set for Weak Start Ahead of Bihar Election Results

The Indian Market seems set to open lower on Friday, November 14 as a result of offshore market weakness and uncertainty at home. GIFT Nifty was showing at around 25,884 down 110 points from the futures Nifty closing. 

The market is expected to remain volatile as traders will be looking for the outcome of the Bihar Assembly elections later today.

On Thursday, benchmark indices ended nearly flat after witnessing mild profit booking at higher levels. The Sensex increased by only 12.16 points to close at 84,478.67, and Nifty 50 increased by 3.35 points to close at 25,879.15. 

The broader markets showed slight weakness with midcaps and the smallcaps both down around 0.35%. Sector signals were mixed, indicating caution ahead of domestic political developments and US economic data.

Sensex outlook

Sensex saw some selling pressure after an impressive move, but analysts still think the broader trend is intact and constructive. The 20-day Simple Moving Average (SMA) is around 84,200 and should act as a key support level. If the market stays above this level the bullish bias should remain in effect. If the index moves above 85,000 then extension toward the 85,300 level should develop. If the market is not able to hold above it could expose the index to a retest of the 84,000-83,700 area.

Nifty 50 outlook

Nifty 50 is printing a doji-type candle on the daily chart indicating indecision in the face of volatility. The index has support at the 25,750-25,700 area as it currently coincides with the 21-day moving average. 

If the index rallies above the 26,000-26,030 area it could move toward the area of 26,180-26,300, potentially supported by short covering. If the index falls below the 25,730 area it could expose the index to the 25,560 area.

The derivative data indicate a range-bound set-up in the short term. The strike price of 26,000 is where the largest Call OI is found, and the maximum Put OI can be observed at the levels of 25,800 and 25,700.

Also Read: US Stock Market Today: S&P 500 Drops 1.3% & NASDAQ Slips 1.7% as Tech Weakens and Ongoing Data Delays Heighten Fed Uncertainty

Bank Nifty outlook

Bank Nifty closed at 58,381.95, up 107 points formed a bullish candle with an upper wick. Strong support lies at 57,590-58,000, while the resistance is at 58,500-58,615.

A strong breakout above 58,615 may trigger a surge towards 59,000, backed by buying in major banking stocks. However, a drop below 58,000 might result in a consolidation phase.