Nifty Outlook: Nifty50 also remained under pressure on Tuesday and declined for the third consecutive session. The expiry of the November series was sluggish. Because the index once again could not stand above the psychological 26,000 level. It finally slipped below 25,900.
The market started the morning with good gains and maintained strength throughout the day, but sharp selling in the last hour ended the entire recovery. Nifty had briefly gone above 26,000, but the fall in the last minutes took it down about 175 points from the intraday high. The index finally closed down 74 points at 25,884.
Now let us understand from the experts how the movement of Nifty will be on Wednesday, 26th November and which levels will be important. But, before that, let us know what special happened in the market on Tuesday.
BEL, Hindalco and SBI top gainers
BEL, Hindalco and SBI were strong gainers among Nifty stocks. On the contrary, Tata Motors’ passenger vehicle business, Trent and Infosys were the big losers of the day. Sectoral trend remained mixed. Realty, PSU Bank and Metal indices were in gain, while Media, IT and Consumer Durables closed under pressure.
Broader markets outperformed benchmark indices. Nifty Midcap 100 gained 0.36%, while Smallcap 100 closed 0.19% higher, snapping a five-day losing streak.
Market cautious due to US inflation data
Investors looked cautious ahead of US inflation data, as it will decide the Federal Reserve’s next policy direction. At the same time, FII selling also weighed heavily on market sentiment. On November 24, FIIs withdrew Rs 4,171 crore.
According to Siddharth Khemka of Motilal Oswal, traders are currently acting with caution due to continuous outflows, uncertainty regarding the US Fed meeting and no progress in the US-India trade deal.
Expert opinion on Nifty
Nagaraj Shetty of HDFC Securities says that the ongoing weakness in Nifty may stabilize near the support zone of 25,800-25,700. According to him, the index may make a ‘higher bottom’ in this range in the coming few sessions. Shetty called 26,050 as the immediate upward resistance of Nifty.
According to Nilesh Jain of Centrum Broking, Nifty needs a clean break above 26,000 for strong short covering and rally to 26,200. Currently the index is trading near its 21-DMA around 25,850.
Jain says that if Nifty goes below this level, the fall can increase rapidly to 25,700. He also said that Nifty is still bullish in the larger trend. As long as the index is above the 50-DMA (around 25,490), buying on dips will work.
25,850-25,800 big support zone
Sudeep Shah of SBI Securities believes that the 20-day EMA will act as important support for Nifty. It is between 25,850-25,800. If Nifty remains below 25,800, it may move towards 25,600. On the upside, the range of Rs 26,000-26,050 will act as immediate resistance.
Nandish Shah of HDFC Securities said that Nifty has closed very close to the previous swing low of 25,856 and 20-DEMA of 25,838. If Nifty gives a strong close below 25,838, the short term trend may change from bullish to bearish and the index may move towards 25,740. On the upside, 26,000-26,050 will still remain the main resistance.
Bank Nifty: Strong support at 58,600-58,500
The zone of 58,600–58,500 is considered an important support for Bank Nifty. According to Sudeep Shah, if the index breaks below 58,500, it can go towards 58,000. At the same time, the next big upside move will start only when Bank Nifty gives a breakout above 59,200-59,300.
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