Summary:
Nifty 50 ended Muhurat Trading below 25,000 after profit booking. The index faces resistance at 25,200, while 24,800 remains immediate support. Technical indicators suggest a positive broader trend, although elevated RSI points to possible near-term consolidation.
Indian equity markets enter Monday's trading session at an interesting juncture after witnessing one of their strongest weekly recoveries in recent years. The Nifty 50 surged around 8.4% last week, reclaiming its 200-day moving average and the psychologically important 25,000 mark. However, the seven-session winning streak came to an end during the special Muhurat trading session on Sunday, November 8, as investors booked profits following the sharp advance.
The Nifty settled at 24,986.40, declining 43.95 points or 0.18%, while the Sensex ended at 80,999.40, down 28.62 points or 0.04%. The index opened above 25,070 and climbed to an intraday high of 25,131.85 before surrendering its gains. The inability to sustain above 25,100 and the subsequent close below 25,000 indicate that selling pressure is beginning to emerge at higher levels.
Nevertheless, the decline needs to be viewed against the magnitude of the preceding rally. The broader trend has improved considerably, supported by renewed foreign institutional investor buying, declining crude oil prices, a stronger rupee and encouraging September-quarter corporate earnings. These factors have helped restore investor confidence after the prolonged weakness witnessed in preceding weeks.
Nifty Technical Analysis: Is the Rally Losing Momentum?
From a technical perspective, the Nifty continues to trade above its key short, medium and long-term moving averages, suggesting that the underlying recovery remains intact. The index has also broken above its earlier declining trendline resistance and reclaimed important swing levels, strengthening the broader bullish structure.
However, the latest daily candlestick presents a slightly different picture. The Nifty formed a small bearish candle with an upper shadow during the Muhurat session, reflecting profit booking after the index approached the 25,100–25,150 region.
The daily Relative Strength Index (RSI) has eased to around 77.42, remaining firmly in overbought territory. While an elevated RSI does not necessarily indicate an immediate reversal, it suggests that the pace of the rally may be difficult to sustain without a period of consolidation. Meanwhile, the MACD remains positive, although its histogram has started contracting, indicating some moderation in upside momentum.
Nifty Support and Resistance Levels for Today
Immediate support: 24,800
Next major zone: 24,400–24,300
Immediate resistance: 25,200
Next major hurdle: 25,500
For Monday's session, the 25,100–25,200 zone is likely to act as the first major hurdle. A sustained move above this region could encourage fresh buying and open the possibility of an advance towards 25,350, followed by 25,500.
On the downside, the 24,900–24,800 region will be important for defending the recent recovery. A decisive break below 24,800 could trigger additional profit booking, potentially dragging the index towards 24,500 and subsequently the 24,400–24,300 support zone.
As long as the Nifty holds above 24,800, the broader bullish structure would remain relatively comfortable, although the index may continue to experience volatility near the 25,000 mark.
Nifty Prediction Today: What Should Traders Expect on November 9?
The near-term outlook for the Nifty remains cautiously positive, although the possibility of consolidation has increased following the recent sharp rally.
The immediate challenge for the bulls will be to reclaim the 25,000 mark and sustain above the 25,100–25,200 resistance zone. A convincing breakout could revive buying momentum and push the index towards 25,350–25,500.
On the other hand, failure to hold above 24,900 could lead to a retest of 24,800. A breakdown below this level would suggest that profit booking is extending beyond a routine pause, opening the door for a deeper correction towards 24,500–24,400.
For traders, chasing a sharp opening rally may carry greater risk after the index's substantial weekly gains. A more measured approach would involve watching how the Nifty behaves around 25,000 and whether buyers defend the 24,800 support.
The broader trend continues to favour the bulls, but the next phase of the rally will depend on whether the market can absorb recent profit booking without surrendering its newly reclaimed technical levels. Monday's session could therefore provide an early indication of whether the Nifty is preparing for another leg higher or entering a period of consolidation after its impressive recovery.
