Nifty Outlook for November 9: Index eyes 25,500 after strongest weekly rally in five years

The Nifty extended its winning streak for the seventh consecutive session on Friday, surging 493 points to close higher. The benchmark index ended the week with impressive gains of 8.58%, or nearly 1,977 points, marking one of its strongest weekly performances in the past five years.

The rally comes ahead of the special Muhurat Trading session on Sunday, November 8.

The broad-based recovery was supported by favourable global cues and encouraging macroeconomic developments. The sharp rally helped the Nifty decisively reclaim the 25,000 mark, reflecting renewed investor confidence, strong buying interest and an improvement in overall market sentiment.

Among Nifty constituents, Mahindra & Mahindra and ICICI Bank emerged as the top gainers, while Tata Motors Passenger Vehicles and Eicher Motors were among the major laggards.

Sectorally, buying interest remained broad-based, with most sectoral indices ending in positive territory. Nifty Media was the only exception. Pharma and Consumer Durables emerged as the top-performing sectors.

The broader markets, however, failed to participate meaningfully in the frontline rally. The Nifty Midcap 100 ended nearly flat, declining 0.02%, while the Nifty Smallcap 100 slipped 0.82%, highlighting the relative underperformance of broader market segments.

Looking ahead, the Nifty is expected to maintain a positive bias in the near term, supported by strong FII inflows, currency appreciation and resilient domestic fundamentals. However, following the sharp rally, some profit booking and intermittent consolidation cannot be ruled out.

Investors will also track the September quarter earnings announcements scheduled over the weekend. Divi’s Laboratories, Tata Steel, HBL Engineering and Tata Chemicals are among the companies scheduled to announce their Q2 results. On Monday, Park Medi World, R M Drip and Sprinkler Systems, Nicco Parks and Resorts, and Medico Remedies are among the companies slated to report their numbers.

Nagaraj Shetti of HDFC Securities said the underlying trend of the Nifty remains positive. Further upside from current levels could take the index towards 25,500 in the near term, he said, adding that immediate support is placed at 24,750.

Osho Krishan of Angel One said the Nifty50 has staged a sharp vertical rally, decisively moving above all its key exponential moving averages (EMAs) as well as the 200-day simple moving average (200-DSMA).

However, momentum indicators have entered overbought territory, warranting a cautious approach, he said. Some profit booking cannot be ruled out and should be viewed as healthy consolidation that could help sustain the broader bullish trend.

On the downside, the 24,770-24,500 zone is expected to offer immediate support, while the bullish gap around 24,300 remains a crucial support area. On the upside, 25,150 could act as an intermediate hurdle, followed by resistance around 25,400.

Sudeep Shah of SBI Securities said the 24,830-24,850 zone would act as immediate support. A decisive breakdown below this range could trigger profit booking towards 24,700.

On the upside, the 25,150-25,180 zone remains an immediate hurdle. A sustained breakout above this range could extend the rally towards 25,350, he said.

Vatsal Bhuva of LKP Securities said the index has moved above its recent swing-high resistance zone and is now approaching the crucial psychological mark of 25,000.

He placed immediate support at 24,800, followed by 24,300, while resistance is seen around 25,200 and 25,500. The overall outlook remains positive, he said.