Nifty 50 eyes 200-day EMA as bullish momentum extends
Technical indicators suggest the Nifty 50 could reclaim its 200-day EMA around 23,900, with support near 23,500-23,600 and resistance around 24,000-24,200.
The Nifty 50 closed up 1.58% on November 3, marking a fourth consecutive session of gains. Analysts note that the index is approaching its 200-day exponential moving average (EMA) near 23,900, and a sustained break above this level could target the 24,000-24,200 zone, which is seen as a key resistance area. On the downside, the 23,500-23,600 range is expected to act as immediate support.
Technical data show the index formed a long bullish candle after a gap-up opening, reclaimed its 100-day EMA and stayed above the 50-day and 20-day EMAs. Moving averages continue to slope upward, Bollinger Bands have widened, the RSI rose to 66.59, and the MACD crossed above zero for the first time since late August, indicating strengthening bullish momentum.
Options data reveal the 24,000 strike holds the largest call open interest, while the 23,600 strike leads put open interest, reinforcing the identified resistance and support levels. The Nifty put-call ratio fell to 1.2 on November 3, suggesting a tilt toward bullish sentiment.
The India VIX increased to 15.72, marking a third straight session of higher implied volatility and hinting at cautious market expectations despite the overall bullish trend.
Market participants observed a long build-up in 56 stocks and short-covering in 103 stocks, while short positions built up in 33 stocks. No new securities were added to the futures-and-options ban, and the existing bans on Kaynes Technology India and SAIL remained unchanged.