On November 8, the Nifty 50 fell 44 points, or 0.18 percent, to close at 24,986, while the Bank Nifty declined 235 points, or 0.4 percent, to 58,851. However, market breadth remained positive, with around 2,581 shares advancing against 663 declining shares on the NSE.
Nifty has delivered the breakout the weekly chart was hinting at. Last week the index closed above the 24,800 neckline of a double bottom, a classic reversal pattern, and it has held that level in the current session. Such a pattern signals that sellers have run out of steam at the lows.
The 25,000 mark did cap the rally, but the profit booking was shallow, with no sign of heavy selling. Stalling at a round-number resistance is routine; what matters is that sellers failed to follow through.
The levels to watch are clear. Support sits at 24,775, followed by 24,700 and 24,650. Dips towards this zone, just beneath the neckline, should act as a launchpad for the next leg towards 25,200. Only a close below 24,600 would damage the structure and invite deeper profit booking.
For the week ahead, 25,200 is the immediate resistance, with 25,450 the next major hurdle above it. On the daily chart, the moving averages are acting as support, which favours a buy-on-dips approach over chasing strength.