Nifty Bank Market Outlook: Analysts Predict Continued Bullish Momentum in November 2023

Nifty Bank ended Monday's trading session at 58,962.70, marking a 0.76% increase. The index saw a robust breakout, hitting a new peak of 59,001.55 during the day. Meanwhile, Nifty closed the previous session at 26,013.45, up by 0.40%, continuing its upward trajectory as it neared the 26,100 level. The India VIX settled at 11.79, with further positive momentum expected if it dips below 11.50.

Dhupesh Dhameja, a Derivatives Research Analyst at SAMCO Securities, noted that "The market setup remains constructive as Nifty sustains above key moving averages and continues its higher-high structure. The contraction in India VIX to 11.79, with a potential drop below 11.50, reinforces a stable volatility environment that typically supports bullish momentum. Going ahead, as long as Nifty holds above 25,850, the bias remains positive."

Dhameja further explained that a decisive move beyond the 26,100 resistance could lead to further gains towards the record high of 26,277. Traders should monitor for short covering at 26,000 CE or new put writing at 25,900/25,950 to confirm a strong directional move. Overall, the index is poised for continued bullish momentum with supportive derivatives data and volatility.

Regarding Nifty Bank's outlook, Dhameja commented that "The outlook for Nifty Bank remains constructive and firmly tilted to the upside. The breakout to all-time highs, combined with strong momentum indicators and favourable derivatives positioning, underscores a resilient bullish undertone. As long as the index holds above 58,500, dips are likely to attract fresh buying."

He added that maintaining levels above 59,000 would enhance the uptrend and could lead to a swift rise towards 59,450 and potentially higher in future sessions. With stable volatility and aligned trend indicators, the broader setup suggests bulls are in control.

On Tuesday, November 18th, Riyank Arora from Mehta Equities Ltd. recommended two stocks as Nifty approached the 26,100 mark.

Hero MotoCorp
Buy | CMP: Rs 5,798.50 | SL: Rs 5,650 | Target: Rs 5,950 / Rs 6,100
Hero MotoCorp is showing a bullish pattern after recent consolidation with support around ₹5,650. The stock is forming higher highs indicating trend continuation. RSI is rising suggesting improving momentum. A move above ₹5,820 could lead to targets of ₹5,950 and ₹6,100 with a stop-loss at ₹5,650.

PolicyBazaar (PB Fintech)
Buy | CMP: Rs 1,815.70 | SL: Rs 1,760 | Target: Rs 1,880 / Rs 1,925
PolicyBazaar has rebounded from its short-term support near ₹1,760 showing signs of trend resumption. Trading above key moving averages reflects strength with positive momentum indicators. A close above ₹1,835 can accelerate gains towards ₹1,880 and ₹1,925 with a stop-loss at ₹1,760.

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