Nifty and Bank Nifty Face Strong Resistance Amid Cautious Market; Analysts Recommend ‘Sell on Rise’ Strategy for Monday’s Trade

On Thursday, the Nifty closed slightly down at 23,533 after a day of tight consolidation. The India VIX, a volatility measure, dropped by 4.27% to 14.77, signaling a decrease in market volatility. This decline in VIX suggests a cautious market, even though sentiment remains mildly optimistic. The Bank Nifty also began the day flat to negative but recovered to close positively around 50,180, driven by buying interest. Resistance remains strong in the 50,500-51,000 range, where heavy call writing has limited upward moves, and 51,500 acts as a major barrier to further gains.

Nifty Outlook: The outlook for Nifty appears bearish-to-sideways, as recent rallies face selling pressure. With Nifty closing below the 200-day moving average and the previous week’s low of 23,800, the trend signals caution. If support holds at 23,500, a pullback may occur; however, failure to maintain this level could lead to further decline, with the next support near 23,300-23,200. A “sell on the rise” approach is recommended, especially if the index remains under the immediate resistance at 24,000, according to Dhupesh Dhameja, Derivatives Analyst at SAMCO Securities.

Bank Nifty Outlook: The Bank Nifty is cautiously bearish, as attempts to rally are met with strong resistance from sellers. The index is struggling to break past the 50,500-51,000 range, and as long as it remains below 51,500, selling pressure is expected to cap gains. Currently trading close to its 200-day moving average of around 49,900, the level is critical support, bolstered by strong put positions. However, previous rebounds have been met with selling, so a cautious stance remains. A “sell on the rise” strategy is recommended if the index stays below 51,500, with likely resistance limiting any upward movement.

For Monday, analyst Sumeet Bagadia from Choice Broking suggests two stock buys:

1. Ganesha Ecosphere (GANECOS): Buy at ₹2,338.5 with a target of ₹2,500 and a stop-loss at ₹2,255. GANECOS is showing strong bullish momentum, supported by a high RSI and increased trading volume, indicating sustained interest and potential for further gains.
2. Tips Music (TIPSMUSIC): Buy at ₹924.5, with a target of ₹985 and a stop-loss at ₹888. TIPSMUSIC is demonstrating an uptrend with growing buying interest, a strong base around the 20-day EMA, and a positive RSI of 67.10. The recent bullish candlestick pattern suggests a promising short-term buying opportunity.

Markets will be closed on Friday, November 15, in observance of Guru Nanak Jayanti.

Disclaimer: This information is for educational purposes only and does not constitute financial advice. Please consult a licensed financial advisor before making investment decisions. Market conditions are subject to change, and past performance is not indicative of future results.