StockEdge's Morning Market Update - 25th Nov
The Nifty 50 gained 375 points over the week to close at 23907. It was Friday - which was do or die day for bulls, and yes, the bulls came in action and respected the 23300 support zone and came back with a bang. The beauty was the broader market participation. All sectors almost ended in the green. IT index, PSU bank, and the real estate sector were among the top gainers.
Technically, the market has respected the mentioned 23300 level beautifully. The momentum, breadth, and overall participation were excellent last Friday. The candle formed is bullish. And the range of 23300 -23850 range was crossed and closed abv the level. The closing was also abv the 13-period EMA, which is an encouraging sign. The RSI indicator has made a beautiful double bottom at the oversold 30 levels and has bounced back. All this hints that there is more strength in store for the bulls. After almost 2 months of correction - last week weekly closing was encouraging. 24200 is the immediate resistance to work with, followed by 24500. These are the levels where the moving averages stand. The markets can test these levels. How the index behaves near these levels - will be a key thing to watch out for. The Maharashtra election results will be absorbed by the market in the next 1 - 2 trading sessions. However - we need to keep a close watch on the Dollar index - which touched at 108 levels last week and is currently at 106.8 levels. We keep a close watch on the index. A support level will be 23750.
Coming to sectors - The IT index has exhibited immense resilience in the last 6 weeks. Banks continue to stand out, and the real estate sector has also bounced well from its short-term support levels.
To conclude - Friday’s rally is expected to continue.
Nifty
Support 23750, 23680
Resistance 24000, 24200
Bank Nifty
Support 50900, 50650
Resistance 51300, 51600
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