Trade Setup For Nov 7: Nifty 50 Poised For Breakout: Target Set At 25,130
In case of a successful breakout, the approximate target for Nifty is 25,130, with the support moving higher to 24,300, analysts said.
The Nifty 50 is on the verge of a breakout from a descending broadening wedge formation, according to Aditya Gaggar, director of Progressive Shares. 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.
Market Recap
The NSE Nifty 50 and the BSE Sensex ended with over 1% gain on Wednesday, with Infosys Ltd., Tata Consultancy Services Ltd. and overall technology stocks contributing to the benchmark indices' rally amid Donald Trump's victory in the US elections.
The Nifty 50 ended 270.75 points or 1.12% higher at 24,484.05, and the Sensex closed 901.50 points or 1.13% up at 80,378.13.
Money Market
The Indian rupee hit a fresh record low on Wednesday in the face of a resurgent US dollar and uncertainty over the US presidential election results. The domestic unit had opened lower for the third consecutive session earlier today.
Rupee depreciated 15 paise in the day so far to Rs 84.25 against the greenback. It had opened at Rs 84.16, marking a fresh low, compared to Tuesday’s close of Rs 84.1075, and surpassing its previous all-time low of Rs 84.1225 hit earlier this week.
