The Nifty 50 has firmly entered bullish territory, backed by strength across key technical indicators over the last six consecutive sessions. The index surged 2.4 percent on November 5, marking its biggest single-day gain in seven months. Renewed optimism over a potential easing of external headwinds, including West Asia tensions, cooling crude oil prices and tariff-related concerns, following the Democratic Party's landslide victory over Trump's Republican Party in the US midterm elections, lifted market sentiment.
The Nifty 50 has rallied nearly 1,900 points over the last six consecutive sessions and moved convincingly above its key long-term moving averages, with the short- and medium-term moving averages also trending upwards. The 10-day EMA has moved above the 50-day EMA and is approaching the 100-day EMA. Additionally, the index has surpassed the 78.6 percent Fibonacci retracement level of its decline from 24,774 to 22,180, signalling strengthening bullish momentum.
Notably, the daily Relative Strength Index (RSI) has climbed to 74.69, its highest level since September 2024, indicating strong upward momentum. The Moving Average Convergence Divergence (MACD) indicator has also maintained its upward trajectory, with the green histogram bars expanding for the sixth consecutive session.
Against this backdrop, market experts expect the Nifty 50 to move towards 24,800, near its August high, which is likely to act as the next major hurdle. A sustained move above this level could open the door towards 25,000 and subsequently 25,500. However, the index may first enter a consolidation phase after its sharp recent rally. On the downside, 24,300, Thursday's low, is the immediate support, followed by the crucial 24,000 zone.
The Nifty 50 opened more than 400 points higher on Thursday and extended its gains as the session progressed. The index touched an intraday high of 24,580 in the second half of the session before closing at 24,537, up 576 points or 2.40 percent. This was its biggest single-day gain since April 8.