On November 2, the Nifty 50 surged 388 points, or 1.68 percent, to close at 23,441, while the Bank Nifty gained 315 points, or 0.58 percent, to settle at 55,002. Market breadth remained positive, with approximately 2,254 shares advancing against 1,050 declining shares on the NSE.
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
Nifty witnessed a strong recovery at the beginning of the week, extending the positive momentum seen during the previous trading sessions. The index moved decisively above the crucial 23,200 resistance zone. This breakout indicates improving buying interest and suggests that the recent recovery is gradually gaining strength. The positive market breadth, along with renewed buying in heavyweight stocks, has supported the upward movement.
From a derivatives perspective, the 23,200–23,000 zone will now act as an important support area. Sustaining above this zone could strengthen the bullish momentum and open the possibility of an upward move towards 23,500–23,700, followed by 24,000. On the downside, a break below 23,000 could trigger profit booking and drag the index towards 22,850 and 22,600. As per the options data there has been significant Put addition at the lower levels mainly at 23,000 an 23,200 levels whereas on the upside beyond 23,500 there is no major Call base until 24,000.
Overall, the near-term outlook has improved, with a positive bias as long as Nifty sustains above 23,000. Traders may adopt a buy-on-dips approach, while a sustained move above 23,500 could provide further confirmation of bullish momentum.