Nifty trades above 23,300: Where does next resistance lie for benchmark index? Check what analysts say
Technically, the Nifty bias is cautiously positive. Clearing 23,300 resistance targets 23,500. The 23,000 mark is a crucial pivot, with the undertone constructive above 22,800 support, said an analyst
Benchmark index Nifty was decisively trading above 23,300-mark on November 2 as oil prices eased from a six-month high on talks to end the Iran war, while Reliance Industries jumped nearly 8% after reporting stronger-than-expected September-quarter profit. At 11:30 am on November 2, Nifty was trading 1.2% higher at 23,336.3. Where does next resistance lie for the index? Here's what analysts said: Technically, the Nifty bias is cautiously positive.
Clearing 23,300 resistance targets 23,500. The 23,000 mark is a crucial pivot, with the undertone constructive above 22,800 support (a break exposes 22,500), said Hemang Gor, Senior Research Analyst – Derivatives & Technical Research, Axis Direct. On the higher side, 23,175/74,800 would be the immediate resistance zone for the bulls. A successful breakout above this zone could push the indices towards 23,350/75,200.
Further upside could extend the rally towards 23,500/75,500. On the flip side, a fall below the 20-day SMA, placed near 22,600 for the Nifty and 73,400 for the Sensex, would make the uptrend vulnerable. Below these levels, short-term traders may consider exiting their long positions, said Shrikant Chouhan, Head Equity Research, Kotak Neo. "On the upside, immediate resistance is placed at 23,200, coinciding with a cluster of daily moving averages.
A decisive breakout above this level could pave the way towards 23,700–24,000, where the 100-Week EMA and 200-Day EMA are positioned. On the downside, immediate support is seen at 22,850, followed by the crucial 22,600–22,400 zone, backed by the 200-Week EMA and rising trendline. Traders may adopt a selective buy-on-dips approach while monitoring these key levels, said Hitesh Tailor, Research Analyst, Choice Broking.
"There are clear indications of a turnaround in the Indian market assisted by positive external and domestic cues. Externally, the slight cooling of Brent crude prices from last week’s high of $118 to $110 now is a relief. Equally important is the decline in the US 10-year bond yield to 4.93%. But, perhaps, more important than these external tailwinds, is the sharp weakening of the AI trade which pulled down the Nasdaq by 2.8% last Friday.
Weakening trend in AI trade is beneficial for India which is widely regarded as a counter AI play. "Fundamental domestic cues are also supportive for a rally. The 17.94% credit growth in the economy and robust GST collections in October reflect a resilient economy, gathering momentum. "Another strong positive, which can drive the market up, is the rising expectations surrounding a thorough rejig of the LTCGs tax in the coming Budget, most likely its abolition.
The market, it appears, has started discounting this. In brief, for now, it is advantage bulls," said V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
