Trade Setup For Nov. 7: Nifty 50 Poised For Breakout, Target Set At 25,130

The NSE Nifty 50 is on the verge of a breakout from a descending broadening wedge formation, according to Aditya Gaggar, director of Progressive Share Brokers. In case of a successful breakout, the approximate target for Nifty is 25,130, with the support moving higher to 24,300, he said.

Shrikant Chouhan, head equity research at Kotak Securities, expects the Nifty 50 to touch 24,700–24,800 soon if the index remains above 24,400. "However, if the market (Nifty) fails to sustain above 24,500, it could correct and retest the previous resistance levels, which were at 24,300–24,200," he said.

Global developments have certainly uplifted sentiments, but we will keep a close watch for the next couple of days, said Osho Krishan, senior analyst, technical and derivatives at Angel One Ltd. "A decisive follow-up move from hereon could provide the necessary momentum for a significant move in the near future. Additionally, there is clear evidence of sectoral rotation, so it is important to adjust our focus accordingly to achieve better performance," he said.

Overseas investors remained net sellers of Indian equities for the 28th consecutive session on Wednesday, while domestic institutional investors also stayed net buyers.

Foreign portfolio investors sold stocks worth Rs 4,445.6 crore, and the DIIs mopped up stock's worth approximately Rs 4,889.3 crore.

The Nifty November futures were up by 1.22% to 24,587 at a premium of 103 points, with the open interest up by 0.6%.

The Nifty Bank November futures were up by 0.55% to 52,650 at a premium of 333 points, while its open interest was up 3%.

The open interest distribution for the Nifty 50 Nov. 7 expiry series indicated most activity at 27,000 call strikes, with the 24,000 put strikes having maximum open interest.

For the Bank Nifty options expiry on Nov. 6, the maximum call open interest was at 52,500 and the maximum put open interest was at 50,000.

• Polycab India: The company has emerged as the lowest bidder for Rs 1,550 crore project from BSNL.

• UltraTech Cement: The company has bought an additional 11.6% stake in UAE-based unit Ras Al Khaimah for $22.02 million.

• Reliance Power: The company’s unit, Rosa Power, has repaid Rs 485 crore in debt to Varde Partners, achieving a zero-debt status. The company will now focus on pursuing growth opportunities in the clean and green power sector.