Jai Bala of cashthechaos.com believes that the market movement over the next few weeks will be crucial for the medium to long-term outlook.

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In an interaction with CNBC-TV18, Bala said that as long as the Nifty 50 remains below 19,850, the probability of the index making a lower low is high. "However, if 19,850 is taken out on the upside, there is a probability that the index will go to record high for one last time and that will be a mega top for several years to come," he said.

On the flip side, if the Nifty 50 fails to cross 19,850, Bala believes that it would make a lower low and enter a slightly longer term correction which would last around 8-10 months.

"So the market price action over the next couple of weeks is going to be extremely important," he said, adding that as long as the index remains below 19,850, the index breaking below the October low is the most probable outcome.

On Tuesday's trading session, foreign investors continued to remain net sellers, while domestic investors remained net buyers in the cash market.

Markets consolidated on Tuesday with the Nifty 50 ending little changed from Monday's closing levels.

Nagaraj Shetti of HDFC Securities said that there is still no confirmation of any lower top reversal pattern yet at the higher levels for the Nifty 50. He expects the index to encounter strong resistance around the 19,500 - 19,600 mark. Immediate downside support is at 19,320.

The Nifty 50 needs to close above the 21-EMA, which is currently at 19,414, above which, the index can head towards levels of 19,650 - 19,700, said Rupak De of LKP Securities. On the downside, he sees support for the index at the 19,300 mark.

The Nifty Bank turned out to be an outperformer on Tuesday and has now gained over 1,000 points over the last four trading sessions. The index has also extended its gains for 2023 after having turned positive for the same on Monday.

LKP's De observed that the Nifty Bank has closed above its 21-EMA for the first time in several days. "The sentiment appears to be positive at this point and seems favourable for a robust upward movement in the index," he added. For the near term, he expects the Nifty Bank to move towards 44,500 with support on the downside at 43,300.

The maximum Call open interest for the Nifty Bank is at 43,500, while the maximum put open interest is at 43,700, said Ashwin Ramani of SAMCO Securities, who expects 43,500 to act as a key support for the index.

What Are The F&O Cues Indicating?

Nifty 50's November futures shed 0.4% or 48,950 shares in Open Interest on Tuesday. They are now trading at a premium of 70.2 points compared to 74.75 points earlier. On the other hand, Nifty Bank's November futures shed 1.3% or 31,935 shares in Open Interest. Nifty 50's Put-Call Ratio is now at 1.07 from 1.14 on Monday.

GNFC is the only stock that continues to remain in the F&O ban list.

Nifty 50 on the Call side for November 9 expiry:

For Thursday's weekly options expiry, the Nifty 50 call strikes between 19,400 and 19,550 have seen Open Interest addition. The 19,850 Call, like Monday has seen Open Interest addition as well. Interestingly, 19,850 has been highlighted by Jai Bala as the decisive level for the Nifty as well.

Nifty 50 on the Put side for November 9 expiry:

On the Put side, the Nifty 50 strikes between 18,950 and 19,250 have seen addition in Open Interest. The 18,800 strike Put has seen Open Interest shedding.

Lets look at the stocks that added fresh long positions on Tuesday, which means an increase in both price and Open Interest:

Lets look at the stocks that added fresh short positions on Tuesday, meaning a decrease in price but increase in Open Interest:

Here are the stocks to watch out for ahead of Wednesday's session:

Hero MotoCorp: Collaborating with partners in the UK, Spain, France to start operations in EVs by mid-2024.

InterGlobe Aviation: Expects 30-35 more aircraft to be grounded between January-March 2024. The airline will have over 70 aircraft on ground after by March 2024.

IRCTC: Net profit up 30.4% from last year to ₹294.7 crore, while revenue up by 23.5% from last year. EBITDA margin falls 100 basis points, while internet ticketing revenue is flat from last year.

Shree Cement: Net profit higher than estimates aided by some contribution from the power segment. Lower taxes boost net profit. Sales volume up by 10% to 8.2 MT. Board also approves setting up a brownfield cement grinding capacity with an estimated capex of ₹550 crore to be completed by September 2025.

Apollo Tyres: Net profit of ₹473.3 crore from ₹179.4 crore year-on-year. Revenue up 5.4% from last year to ₹6,279.6 crore. Operating profit up 63% at ₹1,159.8 crore, while EBITDA margin up 650 basis points at 18.5%.

Deepak Nitrite: Revenue down 9.4% to ₹1,778 crore, while EBITDA rises by 12% from last year to ₹302 crore. EBITDA margin rises 320 basis points to 17%, while net profit also rises 17% year-on-year. Phenolics margin improvement contributes to better performance.

SJVN: Gets Letter of Intent for purchase of 200 MW Solar Power from UPCL Uttarakhand Power.

Inox Wind: Board approves raising funds to the tune of ₹500 crore through preference shares.

Power Grid: September quarter net profit flat, as is the revenue when compared to last year. EBITDA margin expands to 87.9% from 84.5%. Board approves interim dividend of ₹4 per share.

What Are The Global Cues Indicating?

Asian Markets have opened higher after most major indices ended lower on Tuesday. Japanese manufacturers business confidence improved for the first time since August.

The Nikkei 225 gained 0.57%, while the Topix added 0.1% at the start of the session.

Futures on the Hang Seng are indicating are positive start to the trading day.

Wall Street also ended mainly higher on Tuesday with the S&P 500 and the Nasdaq notching their longest winning streak in nearly two years. The S&P 500 gained for the seventh day in a row, while the Nasdaq saw its eighth straight positive session.

The S&P 500 gained 0.3%, while the Nasdaq gained 0.9%. The Dow Jones closed 0.2%.

First Published:Nov 7, 2023 8:59 PM IST