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The stock market is expected to rise in the week starting from 3rd November. Second quarter results, global market signals, buying and selling by foreign investors and technical factors will decide the market movement. Last week, markets broke the streak of four consecutive gains, closing with a slight decline amid profit booking and mixed global signals.
Currently Nifty is at the level of 25,722. If it has to make an all-time high, it will have to climb more than 500 points, which seems a bit difficult. This week the market will also be open only for 4 days.
It will remain closed on 5th November due to Guru Nanak Jayanti. Sensex made an all-time high of 85,478 and Nifty of 26,277 on September 27, 2024.
Let us understand what can happen in the market this week…
Support Zone: 25,637 | 25,553 | 25,395
Support means, the level where the stock or index gets support from falling down. The price does not go down easily due to increase in purchasing here. You may get a shopping opportunity here.
Resistance Zone: 25,880 | 26,038 | 26,122
Resistance means the level where there is a hindrance in the stock or index going up. This happens due to increase in sales. New momentum may arise after crossing the resistance zone.
market direction
Next Trading Day (3 November): According to market experts, the market may open about 50-75 points higher at around Rs 25,775-25,800 on Monday.
It is expected to go up to 25,850–25,900 in day trade. Immediate support is at 25,700. That is, if the level of 25,700 is broken, it can go up to 25,650.
- An intraday bounce expected as RSI is oversold at 31.61.
- VIX being at 12.15 is giving a signal of reducing fear.
- DII buying (₹9,538 Cr) is keeping the market from falling further.
- Expected to benefit from put unwinding due to PCR being 1.25.
All week (3-7 November): The market may remain moderately positive throughout the week. It is expected to reach 25,900–26,000 by the end of the week. These levels are based on technical analysis, OI data from the option chain, and DII purchases.
Caution necessary: There can be sharp fluctuations in the market at any time, so after taking any trade, definitely use risk management and stop-loss. Factors like global market or trade deals can also affect the market.
Now 5 factors which can decide the direction of the market…
1. Q2 Earnings: In terms of earnings, many big companies will release their quarterly reports. These include giants like Bharti Airtel, Titan Company, Adani Enterprises, Adani Ports, InterGlobe Aviation, Mahindra & Mahindra, Paytm, SBI, Britannia.
2. FII Activity: On Friday, foreign institutional investors (FIIs) made net sales of ₹6,769 crore in Indian stocks, while domestic institutional investors (DIIs) made net purchases of ₹7,068 crore. Last month, FIIs sold ₹9,846 crore and DIIs bought ₹9,537 crore.
3. US Market: Movements in the US market affect other markets. Some impact may be visible on Indian markets also. American markets closed higher on Friday.
- The Dow Jones closed up 40 points, or 0.086%, at 47,562 on Friday.
- The S&P 500 index closed at 6,840, up 17 points or 0.26%.
- The Nasdaq Composite rose 143 points, or 0.61%, to 23,724.
4. Technical Indicator: Ajit Mishra, SVP-Research, Religare Broking, said- After four weeks of continuous gains, there was light profit booking in Nifty, indicating a short-term consolidation phase. Now support is around 25,600, which coincides with the 20-DEMA.
Above, resistance is seen around 26,100, and if this level is crossed, a new record high can be created. The market is expected to remain range-bound in the near term.
5. Global Updates: Around the world, investors will also keep an eye on news related to trade deals. These news affect the market. Apart from this, currency movement and crude oil will also have an impact.
On Friday, Sensex fell 465 points and closed at 83,938.
On Friday, October 31, the last trading day of the week, the Sensex fell 465 points and closed at 83,938. Nifty also fell by 155 points, closing at 25,722. There was a fluctuation of 800 points in the market during the day’s trading.
Disclaimer: This article is only for information and learning. The opinions and advice given above are of individual analysts or broking companies and not of Dainik Bhaskar. We advise investors to consult certified experts before taking any investment decision.
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