The Nifty ended 133 points higher on November 1 at 18,145, its best closing since January, on buying in technology, metal, pharma and FMCG names.
The index formed a Doji pattern on the daily charts, indicating indecisiveness among bulls and bears about the market trend.
The index closed well above the psychologically vital 18,000 mark, which can act as a support for the time, and can pave to 18,350, the high of 2022, and then a record high of 18,604, experts said.
“The area of 18,000-18,100 will now act as a support zone as per the principle of role reversal. Till the time the Nifty stays above these levels, it can stretch to 18,300-18,400,” Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas, said.
But if the index slips below 18,000, it will be a sign of exhaustion, he said.
The broader markets also traded higher, with the Nifty midcap 100 index rising 0.87 percent and the smallcap 100 index up 0.22 percent as the breadth remained muted. About 1,069 shares gained against 900 declining shares on the NSE.
Also read: Taking Stock | Bulls tighten grip on D-Street; Sensex tops 61,000, Nifty ends near 18,150
Volatility was slightly high during the day. India VIX, which indicates volatility expected over the next 30 days, climbed 2.07 percent to 16.13 levels.
On the options front, we have seen maximum Call open interest at 18,500 strike followed by 19,000 strike while the maximum Put open interest was seen at 17,000 strike followed by 17,500 strike.
Marginal Call writing was seen at 18,200 strike then 18,300 strike, while marginal Put writing was at 18,100 strike then 18,000 strike.
The data indicates that in the immediate term, the Nifty can trade in the 17,900-18,350 range.
Also read: 11 stocks to watch out for as lock-in period expires in November
Banking index
The Bank Nifty opened positive at 41,552 and hit an intraday high of 41,677 but gave up all its gains in the afternoon. It closed 18 points down at 41,290.
The banking index formed a bearish candle on the daily frame.
“It has to hold above 41,250 levels to make an up move towards 41,650 and 41,840 levels, whereas supports are placed at 41,000 and 40,750 levels,” Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services, said.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
