On Tuesday, October 30, the Nifty index experienced a volatile session but ultimately closed positively at 24,467, gaining 0.53% (+128 points) after recovering from intraday lows. This upward momentum was fueled by buying interest at lower levels. The Nifty Bank index outperformed the benchmark, ending the day at 52,321, up 2.07% (+1,061 points), also benefiting from consistent buying activity. Meanwhile, the India VIX, a measure of market volatility, rose by 1.57% to settle at 14.51. Lower volatility typically attracts buyers, suggesting that if VIX levels remain below 15, the market’s positive momentum may strengthen.
Nifty Outlook
The outlook for the Nifty index appears bullish to neutral. A recent breakout from a falling trendline, coupled with the formation of higher lows, has established a solid support base between 24,200 and 24,100, supported by put writers. However, the index faces immediate resistance at 24,500, marked by significant selling pressure and the 10-day Exponential Moving Average (EMA). A sustained movement above 24,550 could lead to upward momentum, potentially triggering short covering and pushing the index towards the next resistance level at 25,000. Conversely, failure to hold above 24,000 could result in a downward trend, with targets around 23,700-23,600, according to Mr. Dhupesh Dhameja, Technical Analyst at SAMCO Securities.
Bank Nifty Outlook
The Nifty Bank index maintains a bullish outlook. The recent reclaiming of the 52,000 level has reinforced buyer confidence, with both the 10-day and 20-day EMAs serving as immediate support. Options data supports this sentiment, as put writers are increasing positions at higher strike levels (51,800-52,200), while call unwinding is observed. The Relative Strength Index (RSI) on the daily chart closing above 50 indicates bullish momentum. If the index holds above the 51,700-51,600 range, it may attract additional buying interest, making a “buy on dips” strategy viable. Fresh long positions are likely to be created if the index sustains above 52,500, which could trigger short covering and push the index towards the 53,000-53,200 range.
Recommended Stocks to Buy
- Hindustan Zinc (HINDZINC)
- Current Price: ₹550.15
- Stop Loss: ₹531
- Target Price: ₹589
- HINDZINC has formed a hammer pattern near a crucial support zone and has broken out of a consolidation phase, indicating a strong bullish outlook. The stock is supported by a significant increase in trading volume and is trading above key moving averages.
- Eicher Motors (EICHERMOT)
- Current Price: ₹4898.15
- Stop Loss: ₹4727
- Target Price: ₹5241
- EICHERMOT has recently rebounded from a key support level and is on the verge of breaking out from its consolidation range. This potential breakout is backed by a notable increase in trading volumes and positive momentum indicated by the RSI.
Both stocks present promising opportunities for traders, particularly given their favorable technical setups. However, caution is advised due to potential short-term volatility, making proper risk management essential for successful trading.
Disclaimer: This content is for informational purposes only and should not be considered as financial advice. Trading in stocks involves risks, and individuals should conduct their own research or consult a financial advisor before making investment decisions. The author does not assume any liability for any losses or damages arising from reliance on the information provided.
Leave a Reply