Summary:
The Nifty 50 gained 576 points to close at 24,536.60 after six consecutive sessions of gains. For November 6, traders will monitor 24,650 resistance, 24,300 support, overbought RSI conditions, FII activity and weak global market cues.
Indian equity markets are entering Friday's trading session after a sharp rally that lifted the Nifty 50 above the psychological 24,500 mark. The benchmark index surged 576 points, or 2.40%, to settle at 24,536.60 on Thursday, November 5, marking its sixth consecutive session of gains.
The Sensex also advanced 2,008.61 points, or 2.60%, to close at 79,310.01. The rally was supported by declining crude oil prices, renewed foreign institutional investor buying and improving sentiment following the US midterm elections. Financial services, banking and automobile stocks accounted for a significant portion of the gains.
However, the outlook for Friday remains more cautious. Overnight selling in US equities and weakness across Asian markets have introduced the possibility of profit booking following the recent sharp gains.
Alongside the broader market trend, investors will also track company-specific earnings announcements and corporate developments during Friday's trading session. Glenmark Pharmaceuticals, Titan, ONGC, Bharti Airtel, Bajaj Finance and several other companies are in focus following their Q2 FY27 results and business updates. Read our stocks to watch today, November 6 report for the complete list of companies and key developments to monitor.
Nifty 50 Performance: Six Consecutive Sessions of Gains
The Nifty 50 has recovered significantly from its October lows. From the October 28 close of 22,698.85, the index has gained approximately 1,838 points, or 8.1%, over six consecutive trading sessions.
During Thursday's session, Nifty opened at 24,378.05, touched an intraday high of 24,579.90 and recorded a low of 24,296.30 before settling near the day's high.
The strong recovery has helped Nifty reclaim several important moving averages. The index has also consistently formed higher highs and higher lows in recent sessions, indicating improving short-term momentum.
Nevertheless, the pace of the rally raises questions about whether the market can sustain its gains without a period of consolidation.
Nifty Prediction for November 6: Key Support and Resistance Levels
The immediate technical structure remains positive, although the index is approaching a resistance area where traders may consider booking profits.
| Technical levels | Nifty 50 |
| Previous closing | 24,536.60 |
| Immediate resistance | 24,580–24,650 |
| Next resistance | 24,750–24,800 |
| Major resistance | 25,000 |
| Immediate support | 24,360–24,300 |
| Key support | 24,200 |
| Positional support | 24,000 |
Levels derived from published pivot points, recent price action and technical market outlooks.
A sustained move above 24,580 could allow Nifty to test 24,650, followed by the 24,750–24,800 resistance zone. However, failure to maintain levels above 24,500 could lead to some profit booking towards 24,360–24,300.
The 24,200 level is particularly important because it represents an area where buying interest may reappear if the index witnesses a deeper correction.
Nifty Technical Analysis: RSI Indicates Overbought Conditions
The daily chart reflects strong buying momentum following the recent recovery. Nifty has moved above its important short-term and medium-term exponential moving averages, while momentum indicators continue to favour the bulls.
The daily Relative Strength Index (RSI) has climbed to approximately 74.69, placing it in the overbought territory. Although an elevated RSI does not necessarily indicate an immediate reversal, it suggests that the market may be vulnerable to short-term profit booking.
Meanwhile, the Moving Average Convergence Divergence (MACD) remains above the zero line, with an expanding positive histogram. This indicates that the underlying bullish momentum remains intact despite the possibility of consolidation.
For the next trading session, price action around 24,500 will be important. Holding above this level would indicate continued buying strength, while a sustained move below 24,300 could suggest that the current rally is entering a corrective phase.
FII Buying Supports Nifty Rally
Foreign institutional investors have emerged as important participants in the recent market recovery.
According to provisional institutional trading data for November 5, FIIs were net buyers of approximately ₹14,975 crore in the cash market, while domestic institutional investors recorded net selling of around ₹10,445 crore.
Foreign investors have remained net buyers over the previous five trading sessions, with cumulative purchases of approximately ₹35,809 crore.
The renewed buying interest is significant because sustained foreign fund outflows had previously weighed on Indian equities and the rupee.
However, institutional cash market purchases alone cannot guarantee further upside. Continued participation from foreign investors, particularly in banking and other index heavyweight stocks, will be important for sustaining the recovery.
Global Market Cues May Limit Further Upside
Despite Thursday's strong domestic rally, global developments indicate a cautious start for Friday.
GIFT Nifty was trading near 24,440 in an early morning snapshot, around 159 points lower than the previous Nifty futures close, indicating a potentially weak opening.
US equity markets witnessed sharp selling overnight, with the Dow Jones Industrial Average declining more than 1,800 points. The Nasdaq Composite fell around 5.5%, while the S&P 500 dropped approximately 4.4%.
Asian markets also came under pressure, with Japan's Nikkei and South Korea's Kospi recording substantial early losses amid selling in technology and semiconductor stocks.
These developments could influence Indian market sentiment, particularly after the recent uninterrupted rally.
Crude oil prices will remain another important factor. A sustained decline in oil prices would generally be supportive for India, given its dependence on imported crude. However, renewed volatility in energy markets could affect inflation expectations, the rupee and foreign investment flows.
Nifty Prediction: Three Scenarios for Friday
Bullish scenario: Above 24,650
If Nifty sustains above 24,650, the index could extend its recovery towards 24,750–24,800. Strong participation from banking and financial services stocks would support this scenario.
Consolidation scenario: 24,300–24,650
The index may trade within a range as participants assess the recent gains. This would allow momentum indicators to cool without necessarily damaging the broader recovery.
Bearish scenario: Below 24,300
A sustained decline below 24,300 could increase selling pressure and expose the 24,200 support level. A break below that zone may extend the correction towards 24,000.
Nifty Outlook: Can the Index Reach 25,000?
The recovery above 24,500 has improved Nifty's short-term technical structure and brought the 25,000 mark back into focus.
However, the index faces an important resistance zone between 24,750 and 24,800. A decisive breakout above this region, supported by broad market participation and sustained institutional buying, would strengthen the possibility of a move towards 25,000.
For Friday, November 6, the immediate outlook remains cautiously positive from a technical perspective, but weak global cues and overbought momentum indicators could result in volatility.
The key question is whether Nifty can defend the 24,300–24,200 support zone during any decline. Holding this area would preserve the recent recovery structure, while a break below it could indicate that the rally needs a deeper correction before attempting another upward move.
