Nifty Outlook: Nifty 50 maintained its bullish momentum on Monday after bouncing off the strong trendline support of 25,300 on Friday. The index closed 82 points higher at 25,574 amid volatile trading. This broke the trend of decline that had been going on for three days.
Now let us understand from the experts how the movement of Nifty will be on Tuesday, 11th November and which levels will be important. But, before that, let us know what special happened in the market on Monday.
Top Gainers and Losers
Infosys, Bajaj Finance and HCL Tech were the top gainers among Nifty 50 stocks. Whereas Trent, Max Healthcare and Tata Consumer were under pressure and became today’s top losers.
Broader market performance better
Broader markets outperformed benchmark indices. Nifty Midcap 100 gained 0.47% and Smallcap 100 gained 0.35%. Sectoral indices showed mixed performance. IT, Pharma and Metal indices closed in the green. Whereas, Media, Realty and FMCG ended in the red.
IT and Pharma shares gained more than 1%. The reason for this was the hope that a possible government shutdown in America could be averted, which strengthened investor sentiment.
FII’s strong comeback
After six consecutive days of selling, purchases by foreign institutional investors (FIIs) also supported the market. On Friday, FIIs made net purchases of Rs 4,581 crore. Domestic institutional investors (DIIs) were also net buyers worth Rs 6,675 crore. This helped reverse the three-day decline.
Expert opinion on Nifty
Siddharth Khemka of Motilal Oswal Financial Services says that at present the market may remain in a limited range based on global signals. However, he believes that if corporate results continue to be better than expected and there is a positive signal in the India-US trade talks, then the market may get strong support for the uptrend.
According to Nagaraj Shetty of HDFC Securities, Nifty’s recovery from important support strengthens the positive sentiment of the market. He said, ‘The current trend is still bullish. Even if Nifty slips to 25,400-25,300, it can be considered a buying opportunity.
Shetty says that if Nifty comes out strongly above 25,700, then this rise can further take the index to the level of 26,000.
Expectation of rise after getting breakout
Nilesh Jain of Centrum Broking also says that the overall structure of the market is currently strong. According to him, if there is a clear breakout above 25,650, Nifty may rise and the index may move towards the level of 25,800.
Rupak Dey of LKP Securities believes that the level of 25,600 is very important for Nifty. If there is a strong move above this, a clear trend will be visible. Until this happens, the index will continue to move sideways i.e. in the same range.
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Vinay Rajani of HDFC Securities says that Nifty is currently in the consolidation phase. He told that 50-day EMA (25,338) is acting as strong support. At the same time, upward resistance is visible at swing highs of 25,680 and 25,803.
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