Trade Setup For Nov. 25: Nifty Faces Resistance At 24,000, Bank Nifty Eyes 51,500–52,000

The pullback formation is likely to continue as long as the NSE Nifty 50 is trading above its 200-day simple moving average or the 23,600 mark, according to Amol Athawale, vice president of technical research at Kotak Securities.

On the higher side, the Nifty can move up to the 24,000–24,200 level, while the sentiment can change below the 23,600 mark, according to Athawale.

For the Bank Nifty, 50,500 and 50,300 will be key support zones, while the 20-day SMA or 51,250, and the 50-day SMA or 51,850 can be the crucial resistance areas for the short-term traders, he said.

In the short term, the sentiment appears favourable for a meaningful rally if the Nifty 50 stays above the 23,600 mark, according to Rupak De, senior technical analyst at LKP Securities.

"Immediate resistance for the Nifty is seen at 23,960–24,000. A decisive move above 24,000 could trigger a rally toward 24,500. On the downside, supports are placed at 23,750 and 23,550," he said.

If the Nifty manages to sustain above the 24,050 mark, then the rally can extend towards the 24,200–24,300 level, according to Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C Mehta Investment Interrmediates Ltd. "Thus, in the short-term, a buy-on-dips approach should be adopted."

Yedve mentioned that the Bank Nifty has broken the resistance of 50,984 and is sustained above it. "If the index (Bank Nifty) managed to hold 50,980, then the rally could extend towards 51,500–52,000 levels. Thus, in the short-term, the buy-on-dips approach should be utilised."

The NSE Nifty 50 and BSE Sensex recorded the best session in over five months on Friday after ending with over 2% gain. The surge helped the Nifty 50 post its best week in nearly two months.

The Nifty 50 ended 557.35 points or 2.39% higher at 23,907.25, and the Sensex closed 1,961.32 points or 2.54% higher at 79,117.11.

Overseas investors remained net sellers of Indian equities for the 38th consecutive session on Friday, while domestic institutional investors stayed net buyers for the 13th straight session.

Foreign portfolio investors net sold stocks worth Rs 1,278.4 crore while the DIIs were net buyers of shares worth Rs 1,722.2 crore, according to provisional data shared by the National Stock Exchange.

The Nifty November futures were up by 2.36% to 23,900 at a discount of 7 points, with the open interest down by 10.8%.

The open interest distribution for the Nifty 50 Nov. 28 expiry series indicated most activity at 25,000 call strikes, with the 21,700 put strikes having maximum open interest.

• RVNL: The company JV with SCPL received a letter of acceptance worth Rs 838 crore from Eastern Railway. The contract involves construction of minor and major bridges, retaining walls, level crossings, side drains, catchment drains, track work, and other related tasks. The work is supposed to be completed within 36 months.

• CESC: The company's arm received a letter of intent to buy discom in Chandigarh for Rs 871 crore.

• Paras Defence: The company has opened its advanced optical systems testing facility in Navi Mumbai, Maharashtra. It will also make an investment of Rs 500 crore over the next few years to build India's first advanced optical systems development park.

The Indian rupee closed stronger after having faced pressure against the US dollar earlier in the day.

The domestic unit appreciated 5 paise to close higher at 84.45 after opening flat at 84.49 against the US dollar on Friday, according to Bloomberg data.

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