Sensex and Nifty 50 Set for a Weak Start: Key Levels to Watch for November 18

The Indian stock market is expected to open lower on Monday, November 18, following weak global market cues. The Gift Nifty is trading near 23,500, which is around 100 points below the Nifty futures’ last close, signaling a gap-down start.

Market Overview:

• Indian markets were closed on Friday for Guru Nanak Jayanti.
• On Thursday, the Sensex fell 110.64 points to close at 77,580.31, while the Nifty 50 dropped 26.35 points to end at 23,532.70.
• The Nifty 50 chart showed a small negative candle with long upper and minor lower shadows, resembling a doji-like pattern, hinting at indecision among traders.

Technical Insights on Nifty 50:

• The Nifty closed just below its 200-day EMA at 23,540, a level that has previously acted as strong support for reversals.
• Nagaraj Shetti from HDFC Securities noted that although Nifty appears oversold, there’s no clear sign of a reversal yet.
• If Nifty slips below 23,500, it could slide further to 23,200-23,000. On the other hand, a move above 23,700-23,800 could trigger a short-term bounce.

Key Support and Resistance Levels:

• Support: 23,450, with a stronger base near 23,300-23,150.
• Resistance: 23,650, with a higher cap near 23,728.

Rupak De from LKP Securities suggests a cautious “sell on rise” approach, especially if Nifty remains below the 200-day EMA.

Bank Nifty Outlook:

• On Thursday, Bank Nifty closed higher by 91.20 points at 50,179.55, forming an Inverted Hammer candlestick, signaling potential for an upward move.
• Key support is at 49,750 (200-day SMA). If it holds, the index could climb to 50,900-51,200.
• However, a break below 49,750 could lead to a drop toward 49,300-49,000.

Advice for Traders:

• Traders should stay cautious and plan carefully to avoid getting trapped at lower levels, as advised by experts like Amol Athawale from Kotak Securities.

Conclusion:

With Nifty hovering near critical support levels, the market’s next move depends on whether it can hold the 200-day EMA or break below it. Watch for global cues and sector-specific action to guide your trades.