Nifty 50 Extends Rally, Key Resistance Seen Around 23,500
The Nifty 50 index rose 1.68% on November 2, marking a third consecutive gain, with analysts pointing to 23,500 as the next resistance level and 22,300-22,200 as support.
The Nifty 50 index closed up 1.68% on Monday, extending a three-day winning streak. Technical analysis highlighted the 23,500 level, derived from pivot points, as immediate resistance. A break above this threshold could open the path to 23,600 and later to the 23,800-23,900 zone, while the 22,300-22,200 range is expected to act as near-term support.
The index formed a long bullish candle after a gap-up opening, staying above its 50-day exponential moving average and showing upward-sloping short-term averages. Momentum indicators, including an RSI of 61.03 and a bullish MACD crossover, suggested strengthening buying pressure.
Options data showed the highest call open interest at the 23,500 strike (1.1 crore contracts) and the highest put open interest at the 23,000 strike (1.44 crore contracts), reinforcing the identified resistance and support zones. The put-call ratio fell to 1.4, indicating a tilt toward bullish sentiment.
The India VIX rose 1.29% to 15.50, keeping volatility in an elevated range. Analysts noted that a decline below 13 could ease market caution.
Bank Nifty traded within its prior range, posting a bullish candle with a lower shadow and closing marginally above its 20-day EMA. However, it remained below medium- and long-term averages, suggesting a weaker overall structure.
Market breadth data recorded long build-ups in 73 stocks, short-covering in 110 stocks, and limited short-position activity, reflecting mixed investor positioning.
The report included standard disclosures that the analysis reflects the views of individual contributors and not the publishing platform, and that users should consult certified experts before making investment decisions.