Nifty Outlook for November 5: Analysts see index testing 24,300 – 24,400 levels after recent rally

Nifty extended its winning run to a fifth consecutive session on Wednesday, November 4, rising 149 points to close at 23,960, its highest level in two months. The benchmark has now recovered nearly 1,800 points from its recent swing low of 22,179.

The index opened 68 points lower and initially traded in a narrow range before coming under selling pressure after 9:45 am. It subsequently slipped more than 200 points from its previous close. However, buying interest picked up in the second half of the session, helping the Nifty erase all its intraday losses and end near the day’s high.

BEL, Adani Enterprises and Titan were among the top Nifty gainers, while TCS, HCL Technologies and BSE were the biggest laggards.

Sectoral performance remained largely positive, with all indices barring Nifty IT ending in the green. Nifty Media, Realty and Metal led the gains. The broader market also outperformed the benchmarks, with the Nifty Midcap 100 rising 1.50% and the Nifty Smallcap 100 advancing 2%.

The Indian rupee strengthened for a fourth consecutive session, gaining 10 paise to close at 94.64 against the US dollar. A softer dollar index and a decline in crude oil prices following the US midterm election results supported the currency. Lower bond yields and improved risk appetite also contributed to the gains.

The near-term market outlook remains constructive, supported by improving domestic economic indicators and easing crude oil prices. However, volatility could persist amid global uncertainties. Brent crude was trading slightly lower at around $102 per barrel.

With the US midterm election results out of the way, investors will now focus on the US administration’s next course of action on West Asia. Any further escalation in the region or progress on the diplomatic front could have a significant bearing on crude oil prices and global market sentiment in the near term.

On the domestic and global data front, investors will track the US Services PMI data on Wednesday, followed by the Bank of England’s interest rate decision and US initial jobless claims data on Thursday.

According to Nagaraj Shetti of HDFC Securities, the underlying trend for the Nifty remains positive, with the next upside levels to watch at 24,300-24,400 in the near term. He added that any dips could find support around 23,700.

Nandish Shah of HDFC Securities said that the Nifty is approaching its 200-day simple moving average (SMA), placed at 24,003. A decisive move above this level would be significant, as it would mark the index’s first close above the 200-day SMA since February 26, 2026.

A sustained move above the 24,000 mark could open the way for the next resistance zone near 24,375, while immediate support has moved higher to 23,700, Shah said.

Osho Krishan of Angel One said a decisive breakout above the psychologically important 24,000 level could pave the way for further gains towards 24,100 and subsequently 24,300. On the downside, a corrective move towards the 23,750-23,600 zone could offer an accumulation opportunity, provided the broader market structure remains intact.

Krishan said the overall outlook remains constructive, although investors should exercise caution as the index approaches key resistance levels.

Vatsal Bhuva of LKP Securities said the Nifty absorbed minor intraday profit booking around its 100-day moving average during Wednesday’s session, indicating sustained buying interest and continued bullish control.

The 100-day moving average, placed near 23,700, is expected to act as immediate support, while the 24,000 zone remains a crucial resistance. The latter coincides with both the psychological 24,000 mark and the 200-day moving average.

Bhuva favoured a ‘buy on dips’ strategy, identifying support at 23,700 and resistance levels at 24,000 and 24,200.