Trading Plan: Can Nifty 50 defend 25,590, Bank Nifty hold above 57,700?

Nifty Trading Plan for November 6

After the fall, the Nifty 50 reached almost close to the midline of the Bollinger Band (25,590). If the index manages to defend the said level, the 25,700–25,800 levels are to be watched; however, falling below it can open the door for 25,450 support (the September high, which can now act as a support). Meanwhile, the Bank Nifty remained in the previous day’s range and consistently took support at the rising support trendline. If the index consistently holds above the 57,700 level, a rally toward 58,000–58,300 is possible, as above it, 58,500–58,600 cannot be ruled out, experts said.

On November 4, the Nifty 50 fell 166 points (0.64 percent) to 25,598, while the Bank Nifty declined 274 points (0.47 percent) to 57,827. The market breadth was weak, as about 1,965 shares were supported by bears against 882 shares that saw buying interest.

Nifty Outlook and Strategy

Vinay Rajani, CMT, Senior Technical and Derivative Analyst at HDFC Securities

The Nifty closed below its 20 DEMA (25,608) for the first time since October 3. After forming a double-top pattern near 26,100, Nifty has confirmed the lower bottom on the daily chart, which is bearish for the short term. The next support for the Nifty is seen near the previous swing high of 25,448. On the upside, resistance shifts down to 25,718. Nifty has shown follow-up selling after forming two back-to-back indecision candlestick patterns on the weekly chart, which signals caution ahead. The bearish implication of this pattern will be negated only above the 26,100 resistance in Nifty.

Key Resistance: 25,718, 26,100

Key Support: 25,448, 25,050

Strategy: Sell Nifty Futures near 25,600, with a stop-loss of 25,800, targeting 25,350.

Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors

In the previous session, Nifty shed nearly 200 points from the day’s high and broke the important support of 25,650 levels, with broad-based sell-off across sectors. On the daily chart, the MACD has just shown a bearish crossover for the first time since September 25. Also, the index has just broken below a smaller double-top pattern, suggesting cautiousness and a temporary pause in the recent rally.

Prices are now trading at the mid Bollinger Band, which is situated near 25,590 levels; a break below it can accelerate further selling pressure. The short-term trend for Nifty looks weak, with 25,500–25,450 as immediate support. On the upside, a break above 25,810 is required for some stability.

Key Resistance: 25,810

Key Support: 25,450

Strategy: Use pullbacks towards 25,700 as a shorting opportunity, with targets of 25,500 and a stop-loss of 25,810 levels.

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty slipped further after a brief pause on Monday, moving towards the support zone of 25,525. The index found initial support near the 21 EMA. The RSI indicates weak price momentum with a bearish crossover. If the index falls below 25,590, the correction may extend towards 25,500–25,525. On the other hand, resistance is placed at 25,700, above which the index could regain strength.

Key Resistance 25,700, 25,800

Key Support: 25,500

Strategy: Buy Nifty 25,500 PE of November 11 expiry at Rs 93, with a stop-loss of Rs 63, targeting Rs 150.

Bank Nifty - Outlook and Positioning

Vinay Rajani, CMT, Senior Technical and Derivative Analyst at HDFC Securities

Bank Nifty is placed stronger on the chart as compared to Nifty. The index has formed a lower top at 58,470 but has not breached the swing low support of 57,482 yet. Any close below 57,482 would confirm a bearish trend reversal for the short term. The index is still holding its level above the 20 and 50 DEMA, which indicates a positional uptrend for the index.

However, two back-to-back “Doji” candlestick patterns on the Bank Nifty weekly chart signal caution for the short term. Traders should remain cautious until the index takes out the crucial resistance of 58,600. Below 57,482, the index could move down to the positional support of 56,720.

Key Resistance: 58,255, 58,600

Key Support: 57,482, 56,720

Strategy: Sell Bank Nifty below 57,482, with a stop-loss of 57,900, targeting 56,720.

Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors

Bank Nifty is taking a breather by forming a Triangle pattern on the daily chart, with prices consolidating within a broader range of 57,500–58,500 levels post making fresh highs on October 23. Due to this, the daily RSI is also relieved from the overbought zone and is now hovering near 60 levels, implying healthy consolidation before the next directional move emerges. However, PSU banks continued to outperform Bank Nifty by making fresh highs almost every day, with private banks being major laggards.

For now, a break below the 57,500 level can drag prices to the 38.2 percent retracement area of the prior rally, which started in October 2025 and derives targets of 56,970 levels. A directional move is much awaited. A break above 58,250 levels can result in an attempt to touch the upper end of the range near 58,500 levels, while on the downside, a break below 57,650 followed by 57,500 can confirm that the short-term top has formed.

Key Resistance: 58,500

Key Support: 57,350

Strategy: Short positions can be created below 57,650 with a stop-loss of 57,800 and targets of 57,500 followed by 57,350 levels.

Rupak De, Senior Technical Analyst at LKP Securities

The Bank Nifty remained sideways throughout the day before closing lower. As per the current setup, a small pullback cannot be ruled out; however, the short-term trend continues to remain strong, with the index sustaining above key moving averages on the daily timeframe. Support on the lower end is placed at 57,700, below which the trend might turn slightly negative. Until then, the outlook remains positive, with a potential move towards 58,500.

Key Resistance: 58,100, 58,500

Key Support: 57,700

Strategy: Buy Bank Nifty November 58,100 CE expiry at Rs 675.50, with a stop-loss of Rs 615, targeting Rs 800.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.