Nifty outlook bearish, but near-term recovery in sight: Analysts
The Nifty index fell over 2% amid sustained selling pressures with technical indicators signaling support levels. Analysts have identified crucial resistance levels and potential near-term recovery points for the index. Several stocks have shown strength and recommendations have been made for buying opportunities. Additionally, bearish momentum remains evident in specific sectors while futures…
Analysts are cautioning that the Nifty outlook appears bearish, yet a near-term recovery may be on the horizon. The Nifty experienced a decline of over 2% throughout the week due to persistent selling pressure. Technical indicators suggest crucial support levels at 22,150–22,350, while resistance is expected around 22,800–23,200. Despite the prevailing bearish signals, a close above a significant technical indicator, such as the daily supertrend at 22,560, could signal improving near-term momentum and potential recovery.
For the November 3, 2026, expiry, a strategic buy-and-sell approach of Nifty options is recommended. Buying the 22,600 call at Rs 249 and selling the 22,950 call at Rs 110 creates a bull call spread with a net debit of Rs 139. This position features a stop-loss at the spread premium of Rs 60 and an anticipated target of Rs 270. Additionally, certain stocks such as JSW Cement and ONGC are highlighted as potential buys, with BHP Hexa and IPCA Laboratories also identified as promising opportunities based on their current market positions and technical analysis.
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