Technical analysis is a mechanism to identify trading opportunities in the stock market by evaluating statistical data. The statistical data comprises price movement, trading volume, moving average, historical data, charts, breakouts, correct buy points, proper buy zones. This strategy is based on the assumption that the past trading activity of a stock can be an indicator of its future price movements when analysed with suitable rules of trading. This method analyses the ways supply and demand for a stock may drive changes in price, volume, and implied volatility. First time investors often get confused between fundamental and technical analysis. While both methods are used to research and forecast future movement in stock prices, both are different in nature. Like the name suggests, fundamental analysis evaluates a stock on its inherent value i.e. fundamentals. This method involves evaluating a company’s financial statements to estimate the fair value of the business. On the other hand, technical analysis is based on statistical trends and assumes that the stock price has already factored-in all publicly available information. More
Analysts said the current phase reflects cautious sentiment among market participants amid persistent global uncertainties and the absence of major domestic triggers.
If the benchmark Nifty 50 breaks its 25,450 support, a fall toward 25,350–25,300 is possible. However, in case of a rebound, 25,700–25,800 are the levels to watch.
The market is expected to weaken further given that the index traded below short-term moving averages. Below are some short-term trading ideas to consider.
Experts expect the Nifty 50 to decline further towards 25,450. A decisive break below this level could open the door for a fall to 25,350–25,300. However, on the higher side, resistance is placed in the 25,700–25,800 zone.
Weekly options data indicated that the Nifty may trade in the 25,000–26,000 range in the short term.
If the Nifty 50 manages to defend the 25,590 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).
The market may remain range-bound until it trades below the previous week's high. Below are some short-term trading ideas to consider.
According to experts, if the Nifty 50 sustains below 25,600, the 25,500–25,400 levels will be key support zones to watch. On the upside, resistance may be faced at the 25,750–25,800 levels, above which 25,600 could be possible.
The Nifty Realty Index has formed a strong base and recently broke out from a rectangle pattern on the daily chart, indicating the potential for a follow-up move on the upside towards Rs 1,050 in the near term, says Jain
Weekly options data indicated that the Nifty 50 is expected to trade in the 25,200–25,800 range in the short term, with 25,000–26,000 being the broader range.
Until all indicators align positively, the consolidation phase may continue, with the 25,700–25,600 zone acting as key support. Below this, 25,500 remains a crucial support level. On the higher side, the 25,900–26,000 zone is expected to act as a hurdle, according to experts.
The Nifty 50 index is expected to consolidate further with support in the 25,700–25,600 zone, while on the higher side, the 25,900–26,000 levels are to be watched, as sustaining above them can drive the index toward a record high, experts said.
The consolidation amid range-bound trading may continue in the upcoming sessions due to a lack of triggers. Below are some short-term trading ideas to consider.
The weekly options data continues to show 26,000 as a resistance for the Nifty 50, while support is placed in the 25,700–25,500 range.
Foram Chheda has a neutral to mildly bullish view for the equities ahead in November.
If the Nifty decisively breaks 25,700–25,670, the 25,500–25,400 levels are the next to watch, as selling pressure may widen below this zone. However, on the higher side, 25,900–26,000 is the immediate hurdle, followed by 26,100, experts said.
Given the cautious sentiment signaled by momentum indicators, the market may continue consolidating for a few more days. Below are some short-term trading ideas to consider.
Momentum indicators signaled some caution in the short term, especially after a sharp rally in October. A breakdown below 25,500-25,400 area could strengthen the bears, whereas holding above it amid the current nervousness and consolidation could push the Nifty 50 back toward 25,900–26,000, according to experts.
Vertical Debit Spreads are the spreads that has both options of the same type and expiry date. Also, the debit element of spreads indicate we have to pay premium to get into the trade. Higher Strike Calls and lower Strike Puts are relatively less expensive.
Sagility breached its previous high of Rs 56.40 but failed to sustain, forming a bearish engulfing candle on the daily chart — a potential reversal signal, Sudeep Shah said.
Weekly options data also indicates that the Nifty is expected to remain in the 25,500–26,100 range in the short term.
Until the Nifty 50 achieves a decisive breakout and sustains above 26,100 — the key hurdle — consolidation amid rangebound trading may continue, with immediate support in the 25,800–25,700 zone.
The market is expected to consolidate further amid range-bound trading before finding firm direction. Below are some short-term trading ideas to consider.
If the Nifty 50 stays below 26,000, the consolidation may continue with support at 25,800–25,700, followed by 25,500 as a crucial support level. However, climbing decisively above 26,000 can open the door for the 26,100–26,300 zone, according to experts.
The weekly options data suggested that 26,000 is expected to act as a strong resistance for the Nifty 50, with key support at 25,500.