The markets have witnessed a significant improvement in their technical structure following the sharp rebound from the important long-term support zone near 22,700–22,800. The Nifty has reclaimed its 50-week and 100-week moving averages, currently placed at 24,280 and 24,317, respectively, and has closed near the upper Bollinger Band. However, the sheer magnitude and velocity of the recent advance have left the Index somewhat overextended in the immediate term. While the strong upward thrust has materially improved the near-term outlook, the Nifty is now approaching a broader resistance zone around 25,000–25,200. A sustained move above this area would be required to extend the rally towards the previous major highs. However, some consolidation or a measured retracement can be expected. Such a consolidation is both healthy and desirable to absorb the recent gains and prevent the advance from becoming technically unsustainable.
The coming week is likely to see a stable start, with the customary one-hour Muhurat trading session scheduled for Sunday, November 8. The trading holiday on Tuesday, November 10, will make this a truncated week. Given the sharp rise already witnessed,…