Market Volatility Creates Buying Opportunities
The Indian stock market experienced significant turbulence last week, with the benchmark Nifty 50 index declining by nearly one percent for the week ending November 7. This downturn was driven by weak global signals, absence of fresh market catalysts, and ongoing uncertainty surrounding a potential India-US trade agreement.
Market participants are now closely monitoring several key factors that could influence direction this week, including developments in India-US trade negotiations, second-quarter earnings results, foreign institutional investor trends, and domestic inflation data.
Technical Outlook: Nifty at Critical Juncture
According to technical analysis by Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, the Nifty 50 has retraced approximately 50 percent of its previous upward movement from 24,600 to 26,100 levels. The index found crucial support at the extension of the cup-and-handle breakout pattern.
Patel believes that a decisive move above 25,600 would signal the resumption of the uptrend, potentially opening the path toward 25,800–26,000 levels and eventually new record highs. Conversely, if the index breaches the 25,300 support level, weakness could extend toward 25,100–25,000, which represents an important rising trendline support area.
For traders seeking broad market exposure, Patel suggests accumulating index ETFs at current levels, specifically mentioning NIFTY BEES, NIFTY 500 ETF, and NIFTY SMLCAP 250 ETF.
Bank Nifty Shows Resilience
The banking sector index, Bank Nifty, touched the 57,000 zone during the week but ultimately closed flat. Technical charts reveal the formation of a bullish engulfing pattern on daily timeframes, indicating potential trend reversal or continuation of the larger upward movement.
Patel notes that a close above 58,000 could trigger fresh upward momentum toward 60,000, while a breakdown below 57,000 might invite short-term selling pressure. The overall setup remains bullish with positive bias as long as the 57,000 support level holds firm.
Expert Stock Recommendations for 1-2 Weeks
LIC India: Breakout with Strong Volume
Previous Close: ₹924.15 | Buying Range: ₹926–920 | Target Price: ₹1,015 | Stop Loss: ₹877
After a period of consolidation, LIC India has demonstrated a significant trendline and range breakout accompanied by substantial volume increase, indicating robust buyer participation. The MACD indicator has generated a bullish crossover above the zero line, confirming positive momentum shift.
Patel recommends going long in the ₹926–920 range with a target of ₹1,015, maintaining a stop loss at ₹877 on daily closing basis.
Hindustan Zinc: Bullish Reversal Pattern
Previous Close: ₹474.50 | Buying Range: ₹475–470 | Target Price: ₹520 | Stop Loss: ₹449
Hindustan Zinc has corrected approximately 12.5 percent from its recent peak, finding strong support near its 200-day exponential moving average. The stock has formed a bullish engulfing pattern at this critical support zone, suggesting potential trend reversal.
Hourly charts show bullish divergence on the MACD indicator, indicating weakening downward momentum. Patel advises going long in the ₹475–470 range for a target of ₹520, with stop loss at ₹449.
Birlasoft: Weekly Breakout Confirmed
Previous Close: ₹378.25 | Buying Range: ₹380–370 | Target Price: ₹450 | Stop Loss: ₹335
On weekly charts, Birlasoft has formed a bullish engulfing pattern with significant volume surge, indicating strong buying interest at lower levels. The price has registered a trendline breakout, confirming momentum shift after extended consolidation.
Bullish divergence on MACD further supports potential sustained upward movement. Patel recommends going long in ₹380–370 range for target of ₹450, maintaining stop loss at ₹335.
Disclaimer: This analysis is for educational purposes only. The views and recommendations are those of the expert and not financial advice. Investors should consult certified experts before making investment decisions, as market conditions can change rapidly.
