Indian equities extend rally; Nifty faces key resistance as oil prices dip below $100
The Sensex and Nifty 50 posted gains for a fifth session, while analysts cite technical levels, earnings and oil price movements as factors influencing future direction.
Indian stock market indices continued their upward trend on Wednesday, with the Sensex gaining 383.55 points to close at 77,301.40 and the Nifty 50 rising 149.75 points to finish at 23,960.60. Technical analysts said the Nifty held above its 200-day exponential moving average for the first time since mid-August and remained above its 20-day and 50-day EMAs, indicating an improving price structure. The relative strength index stayed above 60 and the MACD histogram expanded, suggesting strengthening momentum.
"The 23,850–23,870 zone will serve as immediate support, with a breakdown potentially triggering short-term profit booking towards 23,700. On the upside, 24,050–24,070 remains a key hurdle. A sustained breakout above this range could attract further short-covering and propel the index towards 24,230," said Sudeep Shah, head of technical and derivatives research at SBI Securities.
The broader market outperformed leading stocks, with the Nifty Small-Cap 100 up 2% and the Nifty Mid-Cap 100 gaining 1.55%. All sectoral indices except Nifty IT closed in positive territory, led by media, metal, realty, FMCG, oil & gas and auto groups.
In parallel, Brent crude fell below $100 a barrel for the first time since early October, a move linked to outcomes of the U.S. midterm elections and expectations of diplomatic engagement with Iran.
"Market direction will hinge on quarterly earnings, crude oil trends, developments in the Middle East, U.S. bond yields and foreign institutional investor flows," said Sunny Agrawal, head of fundamental research at SBI Securities. He noted that foreign institutional investors were net buyers of ₹6,837 crore on November 3, while domestic institutional investors were net sellers of ₹3,679 crore.
Bank Nifty also rose, ending at 55,913.60, up 0.67%. Shah observed that the index moved above its 50-day EMA for the first time since early September, signaling growing buying interest, though the broader structure remains range-bound.
"The 55,400–55,500 zone will provide immediate support, while 56,500–56,600 remains a crucial resistance band. A sustained move above this range could unlock further upside momentum towards 57,000," Shah added.