Trade Setup For Nov. 8: Nifty 50 Faces Resistance At 24,500

Until Nifty 50 does not cross the 24,500 mark, the market may remain weak and re-test the levels of 24,000 or 23,900, according to Shrikant Chouhan, head of equity research at Kotak Securities.

Shrikant Chouhan said that if the 23,800 level of the Nifty gets rejected, then it may see a quick sell-off towards 23,500, which has the support of a 200-day SMA.

“The strategy should be to reduce weak long positions if the indices break the 23,800 levels. For Bank-Nifty, support exists at 51,500, below which it can again fall to 51,200. On the higher side, 52,200 would offer resistance to the bulls,” he said.

On the daily chart, the Nifty 50 has formed a bearish engulfing pattern, according to Aditya Gaggar, Director of Progressive Shares.

“But it appears that it (Nifty) is forming a right shoulder of an inverted head and shoulder formation with a neckline being placed at 24,500, which is also immediate resistance, while on the lower side, a psychological level of 24,000 will serve as a support,” he added.

In the immediate term, we expect the index (Nifty) will consolidate in the range of 23,800 to 24,700. Hrishikesh Yedve, AVP technical and derivatives research at Asit C. Mehta Investment Intermediates Ltd.

“A decisive breakout on either side will determine the next direction of the index. Until then, traders should aim to buy near support and sell near resistance,” he said.