The Nifty 50 witnessed another strong gap-up opening on November 3 and extended its gains to close at a two-month high, rising 1.6 percent. The index extended its winning streak to a fourth consecutive session, rallying more than 1,600 points from its October low. The formation of higher highs, indicating strengthening bullish momentum and an improving broader market structure, suggests further upside potential.
The next resistance for the Nifty 50 is placed at 23,900, around its 200-day EMA. A sustained move above this level would confirm a shift in the broader market structure from weak to bullish in the near term. The psychological 24,000 mark is expected to be the next resistance, followed by the crucial hurdle zone of 24,200–24,400. On the downside, the 23,600–23,500 zone is likely to act as immediate support for the index, according to market experts.
The sharp correction in crude oil prices during the previous session supported market sentiment, although Brent crude oil futures continued to trade above the $100-a-barrel mark.
The Nifty 50 opened higher at 23,582 and extended its uptrend as the session progressed. It touched an intraday high of 23,811 during the closing auction session, which was also its closing level, up 370 points or 1.58 percent. This was the index's highest closing level since September 4.
The Nifty 50 decisively closed above its 50-day EMA on Monday, followed by a move above the 100-day EMA on Tuesday. Its short-term moving averages are also trending upwards, signalling growing confidence among the bulls. The index is now just around 100 points away from its 200-day EMA.