10/11/26, PostMarket REPORT

The Nifty 50 remained range-bound amid consolidation throughout the session before closing above the psychological 25,000 mark with modest gains on November 9. The index found support near 24,800 and continued to hover around the bearish gap formed on March 2 for another session.

The index needs to decisively close this bearish gap by surpassing the 25,150–25,200 resistance zone to extend its uptrend towards the next resistance at 25,500, which is close to the 78.6 percent Fibonacci retracement of the decline from 26,373 to 22,180. However, 24,800 remains an immediate and crucial support level. A break below this level could trigger a deeper correction towards 24,600–24,500, according to experts.

 The index opened higher but remained range-bound throughout the session. On the downside, it found support near 24,800, while profit booking emerged around the resistance zone of 25,080. It recovered more than 200 points from the day's low before closing at 25,045, up 58 points or 0.23 percent.

On the daily timeframe, the index formed a small bearish candle with a long lower wick, indicating strong buying interest at lower levels. The broader structure remains favourable for the bulls, with the index trading well above all key moving averages, which are also trending upwards.

Among momentum indicators, the RSI remained in the overbought zone at 77.88, with a strong bullish crossover, while the MACD maintained its upward bias. However, the green histogram bar contracted for the first time after expanding consistently over the previous eight sessions. These indicators suggest that the underlying trend remains strong despite the ongoing near-term consolidation.

"After the sharp rally, some consolidation would be healthy for the market. The Nifty's ability to sustain above the 24,600–24,800 zone will be important to preserve the positive bias and pave the way for a potential move towards 25,200–25,600," said Ajit Mishra, SVP – Research, Religare Broking.

He recommends using any further consolidation to selectively accumulate quality stocks, with a focus on banking, pharma, auto, infrastructure and capital markets themes.

The weekly options data suggests that the 25,000 strike will be a crucial level for determining the Nifty 50's next directional move, while the broader trading range is expected to remain between 24,500 and 25,500. The maximum Call open interest was concentrated at the 25,500 strike, followed by 25,000, while the maximum Put open interest was seen at 25,000, followed by 24,500.

Meanwhile, India VIX, the market's volatility gauge, declined 5.48 percent to 17.42 but remained elevated, indicating that caution and higher volatility could persist despite the market's positive momentum.

The stock market will remain closed on November 10 on account of Diwali Balipratipada.

Bank Nifty

The banking index rebounded after a day of correction, gaining 891 points or 1.51 percent to close at 59,741, outperforming the benchmark Nifty 50. On the daily chart, the index formed a bullish candle with a noticeable lower wick, indicating strong buying interest at lower levels.

The immediate and crucial resistance is placed in the 60,300–60,400 zone, with 60,400 marking the upper end of the bearish gap formed on March 2. This is followed by the next resistance zone of 60,800–61,100.

The strong follow-through buying reflects continued accumulation and improving market momentum. The RSI maintained its upward trajectory, while the uptick in ADX further reinforced the strength of the prevailing bullish trend.

Bank Nifty has maintained a higher high–higher low formation for the sixth consecutive session and decisively surpassed the 78.6 percent Fibonacci retracement of its decline from the record high of 61,765 on February 3 to 49,955 on April 6, signalling underlying bullish strength.

According to Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, the 59,200–59,300 zone will act as an immediate support area.

On the upside, 60,300–60,400 remains a crucial resistance band. A decisive and sustained breakout above this zone could pave the way for further gains towards 60,800, supported by continued short-covering and positive momentum, he said.

Report by Sunil Sankar Matkar 

Source:Network18