Trade Setup For Nov. 6: Buy-On-Dips As Long As Nifty Is Above 24,000
Analysts highlight that maintaining the Nifty 50 above 24,000 and Sensex above 78,800 could provide a stable buying opportunity for traders, with targets near 24,500 and 80,000 respectively.
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Market participants would benefit by indulging in a buy-on-dips strategy as long as Nifty 50 is above the 24,000 mark, according to Rupak De, senior technical analyst at LKP Securities. However, he advised reviewing this strategy if the index drops below 24,000.
For traders, 24,000 and 78,800 would act as a sacrosanct support level for Nifty and Senex, respectively, said Shrikant Chouhan, head equity research at Kotak Securities. "On the higher side, the Nifty could move up to 24,400-24,500 and the Sensex to 80,000-80,300, while on the flip side, below 24,000/78,800, traders may prefer to exit long positions," he said.
Nifty 50 has formed a piercing candlestick pattern along with a positive divergence in the relative strength index and 150DMA support, according to Aditya Gaggar, director of Progressive Shares.
"As indicated yesterday also, a level of 23,800 will serve as immediate support for Nifty while on the higher side, and the resistance level is shifted higher to 24,370," he said.
Market Recap
India's benchmark stock indices recovered during the last two hours of trade on Tuesday, recording their best session since Sept. 20, supported by rising banking stocks, even as global market participants await the outcome of the US election.
The NSE Nifty 50 ended 0.91%, or 217.95 points, higher at 24213.30, and Sensex ended 0.88%, or 694.39 points, higher at 79476.63.
Money Market
The Indian rupee closed flat against the US dollar at Rs 84.109 on Tuesday. Earlier in the morning trade, the rupee opened at a new low after closing at a record low of Rs 84.11 against the US dollar on Monday.
The rupee, already under significant pressure, opened at a record low of Rs 84.13 on Tuesday.
