On November 4, the Nifty 50 gained 150 points, or 0.63%, to close at 23,961, while the Bank Nifty rallied 374 points, or 0.67%, to 55,914. Bulls dominated market breadth, with around 2,518 stocks advancing against 776 declining stocks on the NSE.
Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities
In the last five trading sessions, the benchmark index Nifty has witnessed a sharp upside rally of more than 1,200 points, or over 5 percent, reflecting a significant improvement in market sentiment. The index has formed sizeable bullish candles in each of these sessions, indicating strong buying interest, with the rally largely led by heavyweight stocks.
Alongside this upmove, the index has surged above all its key short and long-term moving averages, reinforcing the positive technical structure. The 20, 50 and 100-day EMAs have started trending higher, while the downward slope of the 200-day EMA has moderated considerably, suggesting improving medium-term momentum.
Moreover, Nifty has moved above the 61.8% Fibonacci retracement level of its recent decline, highlighting the strength of the ongoing recovery. The daily RSI has also jumped sharply from 45 to 68 in just five trading sessions, reflecting strong momentum and accelerating buying pressure.