Trading Plan: Can Nifty 50 extend its rally for fourth straight session, Bank Nifty hold above 55,000?

However, sustaining this upward momentum will depend on the index defending the crucial support zone of 23,300–23,200. Meanwhile, the Bank Nifty needs to sustain above the 55,000 mark to extend its uptrend towards 55,600, followed by 56,100. On the downside, a sustained move below 55,000 could push the banking index into consolidation, with immediate support placed at 54,500, followed by the crucial support level of 54,000, according to market experts.

On November 2, the Nifty 50 surged 388 points, or 1.68 percent, to close at 23,441, while the Bank Nifty gained 315 points, or 0.58 percent, to settle at 55,002. Market breadth remained positive, with approximately 2,254 shares advancing against 1,050 declining shares on the NSE. Nifty Outlook and Strategy Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities The Nifty 50 witnessed a strong recovery at the beginning of the week, extending the positive momentum seen over the previous trading sessions.

The index moved decisively above the crucial resistance zone of 23,200. This breakout indicates improving buying interest and suggests that the recent recovery is gradually gaining strength. Positive market breadth, along with renewed buying interest in heavyweight stocks, has further supported the upward movement. From a derivatives perspective, the 23,200–23,000 zone will now act as an important support area.

Sustaining above this zone could strengthen bullish momentum and open the possibility of an upward move towards 23,500–23,700, followed by 24,000. On the downside, a break below 23,000 could trigger profit booking and drag the index towards 22,850 and 22,600. Options data indicates significant Put writing at lower strikes, particularly 23,000 and 23,200, suggesting the formation of a strong support base.

On the upside, there is no significant Call open interest concentration beyond the 23,500 strike until 24,000. Overall, the near-term outlook has improved, with a positive bias as long as the Nifty sustains above 23,000. Traders may adopt a buy-on-dips strategy, while a sustained move above 23,500 could provide further confirmation of bullish momentum. Key Resistance: 23,500, 24,000 Key Support: 23,200, 23,000

Strategy: Buy Nifty Futures on dips near 23,200–23,250, with a stop-loss below 23,000 and targets of 23,500 and 24,000. Jigar S Patel, Senior Manager - Equity Research at Anand Rathi The Nifty 50 is exhibiting strong bullish momentum after decisively breaking above its major swing high of 23,175 on the daily chart. The index has now closed just below the important 23,450 mark, indicating that buying interest remains strong.

Momentum indicators are also supporting the positive outlook. The daily RSI is placed at 61, comfortably above the crucial 50 mark, reflecting improving underlying strength. Meanwhile, the hourly RSI has reclaimed the 70 mark, suggesting strong short-term bullish momentum. Additionally, price action continues to sustain above the 10-day and 20-day Double Exponential Moving Averages (DEMA) on the daily chart, reinforcing the positive trend structure.

Overall, the technical setup favours the bulls, and any corrective pullback could attract buying interest as long as the index maintains its positive price structure. Key Resistance: 23,500, 23,600 Key Support: 23,175, 23,000 Strategy: Buy Nifty Futures on dips, with a stop-loss at 22,900 and a target of 23,800. Somil Mehta, Head of Retail Research at Mirae Asset ShareKhan The Nifty 50 has closed above its 40-day DEMA and is now trading above its key daily moving averages.

The index has also started forming higher highs and higher lows, indicating a potential shift in the trend from bearish to bullish. Over the next few sessions, the index could move towards 23,477–23,783, corresponding to the 50% and 61.8% Fibonacci retracement levels of the August–October correction. On the downside, 23,100–23,150 represents the immediate support zone. Additionally, a strong base has emerged around 22,800–22,850.

The bullish outlook remains intact as long as the Nifty sustains above 22,800. Key Resistance: 23,477, 23,783 Key Support: 23,100, 22,800 Strategy: Buy Nifty Futures on dips in the 23,100–23,150 zone, with a stop-loss at 22,800 on a closing basis and targets of 23,477–23,783. Bank Nifty - Outlook and Positioning Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities

The Bank Nifty continued its recovery but remained relatively weaker than the broader Nifty 50. Although buying interest was visible across banking stocks, the index continued to face resistance around the psychologically important 55,000–55,100 zone. The inability to establish a decisive breakout above this level indicates the persistence of selling pressure at higher levels. From a derivatives perspective, the 54,500–54,000 zone is likely to act as the immediate support area, with the 54,000 strike having the highest Put open interest concentration among the immediate support strikes.

A sustained move below 54,000 could increase selling pressure and drag the index towards 53,500 and 53,000. On the upside, 55,100 remains the immediate hurdle, followed by 56,000. The 56,000 strike has the highest Call open interest concentration after 55,000, indicating another important resistance area. A decisive close above 55,100 would improve the derivatives positioning structure and could signal the beginning of a stronger recovery in banking stocks.

The performance of heavyweight private sector banks will remain crucial in determining the next directional move. Key Resistance: 55,100, 56,000 Key Support: 54,500, 54,000 Strategy: Buy Bank Nifty Futures above 55,100, with a stop-loss below 54,500 and a target of 56,000. Jigar S Patel, Senior Manager - Equity Research at Anand Rathi The Bank Nifty is showing encouraging signs of a potential trend reversal, with a double-bottom formation emerging in the 53,800–54,000 zone.

This base formation is supported by a bullish RSI divergence, indicating improving underlying momentum and a possible reduction in selling pressure. Adding to the positive setup, the index has successfully moved above its hourly swing high near 54,650, signalling a shift in the short-term price structure in favour of buyers. This breakout strengthens the possibility of further upside and suggests that buying interest is gradually returning.

Considering the combination of a double-bottom formation, bullish divergence and an hourly swing-high breakout, the bullish bias is expected to continue in the Bank Nifty. Sustaining above the breakout zone will be important to maintain positive momentum. Key Resistance: 55,000, 55,500 Key Support: 54,500, 54,300 Strategy: Buy Bank Nifty Futures on dips, with a stop-loss at 54,500 and a target of 56,000.

Somil Mehta, Head of Retail Research at Mirae Asset ShareKhan The Bank Nifty has established a solid base near 53,800 and rebounded from this level. In the near term, the 40-day EMA and a downward-sloping resistance trendline, both placed around 55,400, form a crucial resistance zone. A decisive close above this area could lift the index towards 56,065–56,700. The daily momentum indicator has recently generated a bullish crossover, indicating improving momentum.

Any dip towards 54,400 could offer an opportunity to accumulate the index. The short-term trend is likely to remain positive as long as the Bank Nifty sustains above its recent low of 53,626. Key Resistance: 55,400, 56,065 Key Support: 54,400, 53,626 Strategy: Buy Bank Nifty Futures at the current market price (CMP) or on dips towards 54,400, with a stop-loss at 53,626 on a closing basis and targets of 56,065–56,700.