Weekly Technical View: Nifty50 & Banknifty Analysis for Upcoming Week; Stock picks for next week

SUMMARY

Volatility has hit a fresh two-and-a-half-month high. Overall, the NIfty 50 has been range-bound between 24,000 and 24,500 for more than a week, and this trend may continue until it breaks out of this range in either direction.

The Nifty 50 had a good start to Samvat 2081 and the November series on November 1, the Diwali Muhurat trading day. However, we must be cautious until the index decisively surpasses 24,500 as they await two major global events: the US elections and the Federal Reserve's interest rate decision scheduled for next week.

Friday’s Muhurat trading was largely retail-driven, with strong buying interest seen in PSU, auto stocks, and mid-smallcaps. The Nifty index managed to stay above 24,250. However, the real test for Nifty will come on Monday when FIIs return. The savior of Indian stocks, DIIs, will also be present to support the market.

Nifty View:

Nifty50 is still in the consolidation range which is 24,500-24,000. A one-sided bullish trend or Reversal is only possible if nifty gives a daily breakout/closing above 24,500 level. Till now, there needs to be a "Neutral Bias" and to do level-based trading in this 500-point range. The bearish trend will continue below 24,000 level.

Immediate Resistance at 24,368-24,400 and Support at 24,300-24,280.

Major Weekly Hurdle at 24,468-24-500 (10&100DEMA) and Support at 24,075-24,000.

Above 24,500 level, the Target will be 24,651 (20DEMA) and then 24,800-25,000.

Below 24,075 level, Target will be 23,880 and then 23500 (200DEMA).

Banknifty View:

Banknifty also tried to create a monthly bottom at 50,380-50191, but still not able to break the upper resistance zone 52,356-52,576 due to Weak and In-line Q2 numbers of some major banks like Indusind, Kotak bank, but the finance sector (Home finance/Life Insurence Stocts) still looks positive which can support banknifty in upcoming week. Bullish Trend or to take a positional bet possible only above 52,500 levels. Till now, need to be Neutral and do level-based trading in banknifty.

Immediate Resistance at 52,000 and support at 51,500-51,318.

Major Weekly Resistance at 52,356-52,576 and Support at 51,000.

Above 52,500 level, target will be 52,900 and then 53500-53780.

Below 51,000 level, target will be 50,191 and then 49700 (200DEMA).

Volatility has maintained its upward journey for the fourth consecutive session, hitting a fresh two-and-a-half-month high, which makes the bulls more uncomfortable now. The India VIX rose by 2.27 percent to 15.9, the highest level since August 13, while for the week, it rallied 8.68 percent, extending its upside for another week.

Stocks for Next Week:

1) BEML: CMP 4,063

The stock chart setup looks good as it created a fresh bottom at the 3,550-3,600 zone (200DEMA). Now Share has the potential to give a breakout of the Multi-Week Hurdle 4,100-4,150 zone. The expected Target will be 4380-4,400 in the near term and 4,800- 5,000 levels in the short term, Stoploss will be near 3,960.

2) Laurus labs: CMP 499.80

Stock trading in Higher-High Formation in a rising channel which is showing a bullish uptrend in Daily TF. The stock has also taken support/created a fresh bottom on its 200DEMA (440 level) and given a breakout of a double bottom pattern. Now Expected target will be 518 and 532 on the upside with a StopLoss at 485.

3) Ramco Cements: CMP 892.40

After Defending lows, the stock gave a breakout of its monthly hurdle 875-882 zone and the price sustained above those levels as well. Stock trend getting bullish as there is a volume breakout and trading above all moving averages. Now the stock has the potential to hit 938 level in near term and 1,057 ( December-2023 highs) in Short term, by placing Stoploss near 872 level (Near 10DEMA).

*Nifty50 & banknifty Analysis

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