The Nifty 50 witnessed consolidation and mild profit booking after hitting an nearly eight-and-a-half-month high during the session, ending 0.2 percent lower on November 8, the Muhurat trading day. The index snapped its seven-day winning streak but closed the week 8.4 percent higher, marking its biggest weekly gain since February 2021. It also formed a long bullish candle on the weekly charts.
The profit booking was along expected lines, as the momentum indicator RSI approached overbought territory. However, the broader market structure continues to remain positive. The index may see further consolidation, with immediate support placed at 24,800, followed by the crucial support zone of 24,400–24,300. On the upside, 25,200 is expected to act as an immediate hurdle, followed by 25,500, which is near the 78.6 percent Fibonacci retracement level of the correction from 26,373 to 22,180, according to experts.
The Nifty 50 opened moderately higher and climbed to an intraday high of 25,132 but failed to sustain those levels. The index remained range-bound for most of the session before closing 44 points, or 0.18 percent, lower at 24,986.
On the daily charts, the index formed a small bearish candle with a minor upper wick, indicating profit booking.
The index remained comfortably above all key moving averages, with the short- and medium-term moving averages continuing to trend upwards. The RSI declined to 77.35 from 78.55 but remained well above its signal line. The MACD maintained a strong bullish crossover, although the green histogram bar contracted after expanding for eight consecutive sessions. Together, these indicators suggest that the broader bullish momentum remains intact, although some moderation in momentum is emerging.