Daily Stock Insights by Mr. Zanil Shah

Nifty:

• The week ending 29^th Oct Nifty observed a good correction from its all-time High 18594. The benchmark index has given up 935 points from its all-time high and settled at 17715 down by 2.37% on weekly basis.
• Since past few weeks I have been mentioning that 18500 is a crucial resistance and Nifty is highly overbought and expect a correction in near term which is now evident in current scenario.
• Nifty has now closed below its short term trend line and has also broken its trend-line from the low of 15510 which indicates that in near term it is sell on rise zone which is shown in the below image

• Nifty’s 17650 -17676 was our Monthly support for the October month where it has halted.
• If Nifty sustains below the 17650 (previous months support) level it may test 17500 – 17550 (which is the 50 day’s SMA and give a bounce back).
• I consider 17550 as a Major Support since a longer trend-line that starts from the low of 8811 (18^th May 2020) followed by the low of 15510 (28^th July 2021) indicates that for once nifty should take a support near this and bounce back. Shown in below image.

• Below 17550 market will enter in a weaker zone for medium term and may test 17430 / 17335 / 17264 / 17072.
• Going forward for the month of November our important levels for Nifty are
  •  Monthly – 17787.
  • Weekly –18089 (changes every week) and
  • Daily – 17816 (changes every day).
• Currently the market is in bears favour and for the month of November bulls will only have its upper hand above 18089. Every support can be used to go long for trading purpose especially 17550 from where one can expect a bounce back till 17787 / 18089 levels.
• FII’s have sold heavily on Friday worth 5143 cr and in entire Oct Month they have sold worth 25572 crs. A Similar scenario was seen in the Month of July where FII’s sold worth 23193 crs( where Nifty made a low of 15510 which is again a 50 day’s SMA and observed a sharp reversal. And again we have a strong support at 17550 – 50 Day SMA + the longer term trend-line support. So keeping our fingers crossed and let’s observe whether the bulls get back on track from here or they surrender in front of the bear’s team.

Bank Nifty:

• Bank Nifty after making a high at 41821 (Our target was 41650) observed a good correction and made a low of 38606 and settled at 39314 down by 2.68% on weekly basis.
• Further Bank Nifty has taken a support at is minor trend line and bounced back in late Friday’s session.
• The trend-lines support is at 38500 below which it may test 37748 / 36655 and expect a bounce back from these levels.
• For the month of November Bank Nifty’s important levels are
  • Daily – 39426
  • Weekly  – 40635
  • Monthly – 39326

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