Trade Setup For Nov. 19: Nifty 50 Set To Recover Towards 23,700-23,800 Levels
The Nifty 50 is set for a potential rebound after its longest losing streak since February 2023, with analysts pointing to critical support near 23,300.
Although the overall (Nifty 50) chart setup remains weak, the selling pressure appears to have eased following a prolonged correction, according to Rupak De, senior technical analyst at LKP Securities.
“In the short term, the index may recover towards 23,700–23,800. On the downside, support is positioned at 23,200–23,300," he said.
The 50-week simple moving average for Nifty 50 is placed near 23,300 levels, which will serve as short-term support for the index, according to Hrishikesh Yedve, assistant vice president of Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.
Hrishikesh Yedve said that overall, the short-term trend is down, but we expect the Nifty index to consolidate in the narrow band of 23,300-23,600.
Hrishikesh Yedve highlighted that the 200-daily exponential moving average support for Bank Nifty is placed near 49,910, and if it manages to respect 49,900, then it could witness a pullback move towards 50,500-50,600 levels, where the short-term trendline resistance is placed.
“If the index sustains above 50,600 levels, the relief rally could extend to 51,000 levels. Overall, the short-term trend is down, but if the Bank Nifty holds above 49,900, a pullback rally could be possible,” he added.
Market Recap
Benchmark equity indices extended their fall for another session, with the Nifty marking its longest losing streak—eight sessions—since Feb. 28, 2023, and the Sensex recording a fourth session of decline.
The indices dropped despite positive economic news, such as Moody's growth forecast for 2024 and CLSA's shift to an overweight position on India, citing potential risks from renewed trade tensions with the U.S. under President-elect Donald Trump.
Nifty ended 0.3% or 78.9 points lower at 23,453.80, and the Sensex ended 0.3% or 241.3 points lower at 77,339.01.
Money Market
The Indian rupee closed little changed on Monday at Rs 84.39, according to Bloomberg data.
The currency had opened flat against the US dollar on Monday amid persistent pressure driven by continued FII outflows. It had closed at Rs 84.40 on Thursday.
