The domestic markets remained under pressure for the seventh consecutive week ended November 14, as bearish sentiment continued to dominate. The benchmark Nifty index breached the critical support level of 23,800, extending its decline to 23,500 and closing the week with a loss of 2.55 percent. This persistent downtrend has been driven by consistent selling from foreign institutional investors (FIIs) and a strengthening dollar index, which has pushed the Indian rupee to an all-time low near 84.50 against the dollar.
Technically, the market's pullback attempts are being met with swift selling pressure, leading to the breakdown of multiple key support levels. The Nifty 50, along with broader indices such as the Nifty 500, Nifty Midcap 100, and Nifty Smallcap 100, has retested its 200-day exponential moving average (DEMA) and closed near this critical level, making the upcoming sessions pivotal for bulls. Failure to sustain above 23,500 in the coming week could exacerbate market uncertainty. The daily RSI (Relative Strength Index) has entered oversold territory, but intraday RSI shows positive divergence. On the upside, a move above 23,700 could trigger short-covering, offering a potential relief rally. However, a decisive breakdown below 23,500 could push the index further towards the 23,300–23,000 zone.
The Nifty Bank index also faced significant selling pressure, declining over 2.6 percent for the week and slipping below the crucial 50,000 level during the weekly expiry. From a price action standpoint, the index shows signs of a potential breakdown, with sustained trading below 49,900 raising concerns for banking stocks and broader indices. Immediate resistance lies at 50,600, and a move above this level could prompt some consolidation or a short-term pullback. The coming sessions will be critical in determining whether the index stabilizes or extends its downtrend further.
Buy Nifty Futures between 23,500-23,475, with a stop-loss of 23,325, targeting 23,800, while buy Nifty Bank Futures between 50,000-50,100, with a stop-loss of 49,700, targeting 50,800.
Here are three buy ideas for short term:
Havells India | CMP: Rs 1,619
Havells has corrected 25 percent in the past month, from its peak of Rs 2,106. It has formed a double-bottom pattern near the Rs 1,600-1,580 zone, aligning with the 0.50-0.618 percent Fibonacci retracement levels of its previous uptrend. Bullish divergence on the daily chart further supports a potential reversal. A buying opportunity is identified in Rs 1,590-1,610 range, with a target of Rs 1,760 and a stop-loss at Rs 1,520 on a daily closing basis.
Strategy: Buy
Target: Rs 1,760
Stop-Loss: Rs 1,520
CIE Automotive India | CMP: Rs 471.7
CIE Automotive has declined 26 percent over the past 3-4 months, from its peak of Rs 622. It has formed a Bullish Crab pattern near Rs 460-470 zone, aligning with the 0.707-0.618 percent Fibonacci retracement levels of its previous uptrend. Bullish divergence on the daily chart indicates a potential reversal. A buying opportunity is suggested in Rs 460-470 range, with a target of Rs 518 and a stop-loss at Rs 438 on a daily closing basis.
Strategy: Buy
Target: Rs 518
Stop-Loss: Rs 438
Titan Company | CMP: Rs 3,183.7
Titan has been trading in a broad range of Rs 3,050-3,870 over the past year and is currently near Rs 3,180 after hitting a recent low of Rs 3,106 on November 8, 2024. The stock has consistently held the Rs 3,100 support level, showing resilience. A Bullish Engulfing candlestick pattern and an impulsive RSI structure on the daily chart indicate a potential reversal. A buying opportunity is suggested in Rs 3,100-3,200 range, with a target of Rs 3,500 and a stop-loss at Rs 2,975 on a daily closing basis.
Strategy: Buy
Target: Rs 3,500
Stop-Loss: Rs 2,975
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
