Nifty 50 Outlook for 3 November 2026
The break of resistance was witnessed with a gap-up opening in NIFTY 50 and is referred as breakaway gaps which doesn’t generally get filled easily. With the break of this resistance, a short-term uptrend has been established, with a higher high and higher low sequence in place. We are witnessing money flowing into the large-cap stocks instead of mid/small-cap stocks. This signals that the investors want to play safe and are skeptical of long-term growth, which is why they want to park funds into large-cap stocks, specifically, defensives like IT and Pharmaceuticals. Even though the rise could still take the shape of a corrective structure, buying on dips remains the strategy, as this uptrend isn’t going to fizzle out easily. Also, buyers should avoid entering in excitement as the index is approaching crucial resistances. Markets are expected to remain stock-specific after this oversold bounce gets over.
As far as the derivatives positioning is concerned, aggressive long buildup along with short covering continued for another trading session. This could result in further short covering from the traders if it sustains above the crucial resistance of 23500.
Key Resistances: 23535 and 23660
Key Supports: 23210 and 23130
Strategy: Buy Nifty (Spot level) dips around 23210 with a stop-loss of 23110, targeting 23360.
ADITYA THUKRAL, PROPRIETOR, AT RESEARCH AND RISK MANAGERS
SEBI Registered Research Analyst INH000013794