Nifty Index Shows Strength with Upward Trend Ahead of Bihar Election Results

The Nifty index opened with a notable gap-up, continuing its upward trend for the third day in a row. This rise reflects growing market confidence ahead of the Bihar election results. The index closed at 25,875.80, gaining 180.60 points and forming a higher low. Meanwhile, the Nifty Bank index increased by 136.50 points to finish at 58,274.65, also creating a higher low and closing above the 58,000 mark.

Dhupesh Dhameja from SAMCO Securities noted that Nifty's structure shows strength with consistent higher lows and a breakout above last week's high. This indicates renewed bullish momentum. The conversion of previous resistance levels into support zones further strengthens the short-term technical outlook. However, ongoing foreign portfolio investors (FPIs) outflows in both cash and futures segments over nine sessions add caution to the broader sentiment.

Dhameja explained that while call writers are active at higher strike levels, aggressive put additions at lower bands show a tactical standoff between bulls and bears. This keeps the near-term outlook positive yet range-bound. A sustained move above 26,000 could trigger a stronger rally, while a drop below 25,650 might lead to short-term weakness. Traders should remain selective and disciplined until a decisive breakout occurs.

The Nifty Bank index has maintained its bullish gap despite minor intraday profit booking, trading above its bullish flag formation's neckline. Sustained buying interest above 58,600, aligning with the previous all-time high, would confirm continued bullish momentum in upcoming sessions. Call writers dominate at higher levels, but aggressive put positions at lower strikes indicate emerging buying interest.

On November 13, Riyank Arora from Mehta Equities Ltd. recommended buying two stocks after Nifty's momentum indicators confirmed an upbeat tone. The 14-day RSI remained above 60, indicating rising short-term momentum.

Asian Paints is showing renewed strength after rebounding from its recent support zone. Trading above key short-term moving averages with a positive RSI trend suggests further upside potential toward ₹2,850 and ₹2,900 if it sustains above ₹2,770. Traders can initiate fresh longs with a stop-loss at ₹2,720 to protect profits.

TCS remains in a strong uptrend supported by consistent buying in the large-cap IT space. Its technical setup suggests continued bullish momentum with improving RSI levels. A breakout above ₹3,150 may lead to gains toward ₹3,250 and ₹3,300. Traders may buy on dips with a stop-loss at ₹3,070 to manage downside risk.

Dhameja stated that while buyers book profits on rallies, sellers haven't fully withdrawn from higher levels. This keeps the index's near-term tone range-bound but with a positive bias. A decisive close above 58,600 will re-establish strong bullish control and extend the rally's upward leg. Until such a breakout occurs, the outlook remains neutral to mildly positive.

A fall below 57,800 could trigger renewed selling pressure in the Nifty Bank index. Traders should remain selective and disciplined, focusing on confirmed breakouts beyond the consolidation zone before taking directional positions in upcoming sessions.

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