On November 6, the Nifty 50 surged 494 points, or 2.01 percent, to 25,030, while the Bank Nifty jumped 1,312 points, or 2.27 percent, to 59,086. However, market breadth remained negative, with about 2,110 stocks declining against 1,186 advancing stocks on the NSE.
Jatin Gedia, Technical Research Analyst, VP, Derivatives & Technical Research at Teji Mandi
Nifty has completed wave 4 consolidation at the October month low (22,179.90) of the rally which has started from the March 2020 bottom of 7,511. It has likely started wave 5. The projected target for wave 5 is 32,700 - 32,800 over the next 18 months which is the equality target of wave 1 in both time and price. Nifty rallied 8.58 percent in the passing week and formed a strong bullish candle (Marubozu) on the weekly charts. It closed above 23,921.72 (200-day EMA) and 24,075 ( anchored VWAP from 26,373), indicating a breakout above long term resistances with highest volume compared to the previous 22 weeks.
Usually, wave 4 breakouts are characterised by strong price action and high volume, both of which were evident last week, further supporting our bullish stance. Now, the critical question here is how to enter at current levels. The entry level should be around the Intraday VWAP for traders with a stop-loss placed at the day's low.
For positional traders, Nifty is around the 261.8 percent extension level (24,970) of intermediate degree wave 1 (22,179.90 to 23,175.25) which is already extended. The upside potential for the current move is 25,200 which coincides with the gap area formed on March 2, 2026, and beyond that towards 25,476 (the 78.6 percent Fibonacci retracement level of the 26,373 - 22,179.90 fall).