Nifty crosses 24,500 as oil prices fall and foreign inflows rise
The Nifty index gained 2.5% on November 5, driven by lower oil prices and increased foreign investment, while analysts project continued upside with key support and resistance levels.
The Nifty benchmark rose 2.5% on November 5, moving above the 24,500 level as oil prices slipped on expectations that a Democratic win in the U.S. midterm elections could accelerate a resolution to the U.S.-Israeli conflict involving Iran. Foreign investors added roughly Rs 7,284 crore of shares on the day, one of their largest single-day purchases in India since October 2025, contributing to November’s net inflows of $1.57 billion.
"The victory of Democrats, who are seen as favouring tighter regulations on AI, could propel foreign investors to look beyond this theme in the future and benefit markets like India," said Dharmesh Kant, head of equity research at Cholamandalam Securities.
Anand James, chief market strategist at Geojit Investments, said the index could continue to rise toward the internal trendline at 24,835, but warned that failure to stay above 24,378 might trigger volatility, with downside risk near 23,700 if the 24,079-130 region is breached.
Shrikant Chouhan, head of equity research at Kotak Neo, noted that short-term market texture remains positive despite temporary overbought conditions, suggesting day traders buy on intraday dips and sell on rallies. He identified support around 23,800-23,750 and resistance near 24,200-24,400.
Pabitro Mukherjee, deputy vice-president of research at Bajaj Broking, said holding above 24,000 could lead to further moves toward 24,400-24,700, while a lower-high, lower-low pattern would signal a pause. He placed short-term support near 23,200-23,400.
V K Vijayakumar, chief investment strategist at Geojit Investments, highlighted the impact of the Brent crude price drop to about $94 on market sentiment, noting that the decline coincides with resilient Indian economic data and improving corporate earnings. He added that expectations of a capital gains tax change in the upcoming budget have improved foreign investor sentiment, with FIIs buying equities worth Rs 20,834 crore in the cash market over the past four trading days. He cautioned that domestic investors may sell on rallies, potentially leading to profit-booking.