Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities believes the short-term technical setup has turned constructive. Nifty has reclaimed its 20-day EMA, which is now gradually turning upward, while the daily RSI continues to trend higher, reflecting strengthening bullish momentum.
According to him, for the higher-high, higher-low structure to sustain, Nifty 50 must decisively overcome the immediate hurdle placed around the 50-day EMA zone of 23,150-23,200. A successful breakout above this level could pave the way for a move towards 23,500 and increase the probability of reclaiming key medium-term moving averages.
Sudeep Shah sees bullish momentum in Gland Pharma, and TVS Motor Company. "The alignment of price action and technical indicators suggests Gland Pharma could be poised for a breakout and further upside, while TVS Motor has witnessed a decisive breakout above its downward-sloping trendline, accompanied by a healthy surge in trading volumes, indicating strong buying interest," he said in an interview with Moneycontrol.
Do you expect the higher-high, higher-low formation to continue in November? Can the market reclaim its medium- and long-term moving averages, given the strength witnessed in recent trading sessions?
The possibility of the Nifty continuing its higher-high, higher-low formation in November has improved meaningfully following the recent pullback from lower levels. During October, the index traded in a narrow range despite elevated volatility and managed to close above the psychologically important 23,000 mark. More importantly, the monthly chart formed a small-bodied candle near a key upward-sloping trendline support after a strong bearish candle in the previous month, suggesting that selling pressure has started to subside.