Sensex Gain 901 Points, Nifty at 24,486; Tomorrow Nifty Prediction
Tomorrow Nifty Prediction
Market Salutes Trump’s Victory: What to Expect for the Indian Stock Market on November 7
On November 6, Indian equity markets staged a remarkable rally, as both the Sensex and Nifty posted strong gains, driven by widespread optimism across sectors.
The Nifty 50 ended the session at 24,484, up by 270.7 points or 1.12%, while the Sensex surged 901.50 points or 1.13% to close at 80,378.13.
This sharp upward move reflected an overall positive market sentiment, particularly in the wake of global developments such as Trump’s victory and favorable domestic macroeconomic indicators.
The rally was broad-based, with 2,852 stocks advancing, 964 declining, and 84 unchanged. Key indices in multiple sectors gained ground, notably Information Technology (IT), realty, and oil & gas stocks.
The BSE Midcap and Smallcap indices outperformed the benchmark indices, each rising by more than 2%.
A look at the performance of individual stocks shows that Bharat Electronics, Adani Enterprises, TCS, Tech Mahindra, and Infosys were among the top gainers on the Nifty, while SBI Life Insurance, Titan Company, IndusInd Bank, HDFC Life, and HUL underperformed.
This broad-based rally was underpinned by gains across all sectors. The IT index led the charge with a 4% gain, boosted by strong earnings from key players like TCS and Infosys.
The oil & gas, power, capital goods, and realty sectors each saw gains of around 2%, contributing to the overall strength in the market.
Investors seemed to be embracing risk once again, as mid-cap and small-cap stocks—typically more volatile—outperformed the benchmark indices.
Technical Prediction: What Lies Ahead for November 7?
As the market continues to digest the gains from November 6, analysts are weighing in on how the market may behave on November 7.
Aditya Gaggar, Director of Progressive Shares, pointed out that IT stocks were particularly strong on November 6, fueling the broader market rally.
Gaggar observed a key technical pattern forming on the Nifty 50: the index is on the verge of a breakout from a descending broadening wedge formation.
A successful breakout from this pattern could propel the Nifty towards a target of 25,130, a level that represents a significant resistance point.
According to Gaggar, the market is showing strong momentum, with mid-cap and small-cap stocks leading the rally and outperforming the broader index.
Gaggar highlighted that the Nifty has already crossed the important 24,500 resistance level, which could act as a catalyst for further gains if the index sustains above this threshold.
On the downside, the 24,300 level is seen as immediate support, and any pullback towards this level might offer an attractive entry point for traders and investors alike.
Meanwhile, Nagaraj Shetti of HDFC Securities echoed a similar bullish sentiment. He emphasized that the Nifty’s bounce from its lower levels, particularly around the 23,800 mark, is signaling the formation of a higher bottom, which is a classic sign of a reversal from a bearish trend to a bullish one.
This has been confirmed by a long bullish candle formed on the daily chart, signaling that the bulls are firmly in control.
Shetti pointed out that two consecutive bullish candles have formed, further reinforcing the view that the market is in a strong uptrend.
According to Shetti, the formation of an important bottom reversal pattern near the 23,800 level confirms the underlying strength in the market.
If the Nifty 50 can break above the 24,500 resistance, it could accelerate its rally towards 25,000, with further upside potential if the momentum continues.
However, Shetti also noted that a minor consolidation might be seen at the 24,500 level before the index breaks out to higher levels.
Key Levels to Watch for November 7
As the market looks to continue its rally, there are critical technical levels that investors should monitor closely.
- Immediate Resistance – 24,500: The 24,500 mark has been a key resistance level in recent sessions, and a sustained move above this level could signal the beginning of a new leg up for the Nifty. If the index manages to break through this level decisively, the next key resistance is seen at 25,000, which could be the immediate target in the coming days.
- Immediate Support – 24,300: 24,300 is seen as the next important support level for the Nifty 50. If the index pulls back, this level will act as a critical buffer against further downside. Any sustained move below this level could indicate that the bullish momentum has slowed down, and the index may enter a consolidation phase or even a corrective period.
- Medium-Term Target – 25,130: If the breakout from the descending broadening wedge formation holds, a potential move towards 25,130 is likely. This would represent a significant technical target and could serve as an intermediate goal for traders and investors looking for further upside in the market.
- Long-Term Support – 23,800: On the longer-term chart, the 23,800 level serves as an important support point, confirming the bottom reversal pattern. A sustained break below this level could signal a deeper correction in the market, but until then, the long-term outlook for the Nifty remains positive.
Prediction for Sectors and Stock Picks
Given the strong rally in IT and mid-cap stocks, it is expected that these sectors will continue to lead the market in the short term.
IT stocks, especially TCS, Infosys, and Tech Mahindra, are poised to benefit from the strong demand for technology services, both domestically and globally.
Additionally, with the ongoing global economic uncertainties, companies with strong fundamentals and a global presence could see further upside.
The realty sector also appears to be in a bullish phase, with stocks such as DLF, Godrej Properties, and Oberoi Realty gaining ground.
The government’s focus on infrastructure development and the ongoing demand for residential properties should continue to support this sector.
On the oil and gas front, stocks like Reliance Industries, ONGC, and Bharat Petroleum are likely to benefit from higher crude prices and the revival in energy demand, both of which should bolster their earnings.
Final Remarks
After the strong rally seen on November 6, the Indian stock market appears to be poised for further upside, especially if it breaks through the critical resistance level of 24,500.
The formation of a higher bottom reversal pattern, coupled with strong sectoral performance, suggests that the market’s underlying strength is intact.
Investors should watch key levels closely: 24,500 on the upside and 24,300 on the downside.
If the Nifty sustains above 24,500, the next targets could be 25,000 and 25,130, with the potential for a broader market rally extending into the medium term.
