The Nifty 50 extended its downtrend for another session amid consolidation, with continued lower-high, lower-low formation and above-average volumes on November 8, which is a negative sign. As long as the index trades below the 10-day, 20-day, 50-day, and 100-day EMAs (Exponential Moving Averages), consolidation with immediate support at 24,000 remains possible. Below this level, the next support is placed at 23,800. However, on the upside, 24,200 is expected to act as the immediate hurdle, followed by 24,500, which is a critical resistance level, experts said.

The Nifty 50 traded within a 100-point range and closed at 24,148, down 51 points, forming a bearish candle with minor upper and lower shadows on the daily charts, indicating a choppy movement in the market.

“Having declined sharply from near the resistance at 24,500 levels, we may expect further consolidation in the short term,” said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

For the week, the index shed 0.64%, wiping out all its previous week’s gains and forming a small negative candle with long upper and lower shadows, resembling a High Wave-like candlestick pattern, which reflects ongoing volatility in the market.

“The next lower support levels to watch are around 23,800. Immediate resistance is at the 24,250 level,” Nagaraj added.

According to weekly options data, the maximum Call open interest was observed at the 25,000 strike, followed by the 24,500 and 24,200 strikes, with maximum Call writing at the 25,000 strike, followed by the 24,800 and 24,200 strikes. On the Put side, the 23,500 strike holds the maximum open interest, followed by the 24,200 and 24,000 strikes, with maximum writing at the 24,100 strike, and then the 23,500 and 23,900 strikes.

The options data also indicated that 24,000 is likely to act as immediate support for the Nifty, while resistance is seen at the 24,200 and 24,500 levels.

Bank Nifty

The Bank Nifty underperformed and corrected for the second consecutive session, with a lower-top, lower-bottom formation for the second straight day. The index corrected by 355 points to close at 51,561, breaking the 10-day, 20-day, and 50-day EMAs in a single session and forming a bearish candle on the daily scale, which is a negative sign.

On the weekly scale, it formed a small-bodied candle with long upper and lower shadows, as the index remains stuck within a wider range, down 113 points for the week. “As long as it holds below the 51,750 zone, some weakness could be seen towards 51,250, then 50,850 levels. On the upside, resistance is seen at 52,000, followed by 52,222 levels,” said Chandan Taparia, Senior Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.

Meanwhile, volatility needs to decline further to the 12-13 levels for the bulls to regain momentum. The India VIX fell by 3.15 percent to 14.47, and for the week, it was down by 9.01 percent after a significant rally in previous weeks.

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