Stock Market Prediction for Nifty & Bank Nifty on November 4, 2024

The Indian stock market experienced a dip recently, with the Sensex losing 553 points, settling near 79,389, and the Nifty at around 24,200, mainly due to a significant decline in IT sector stocks. Here’s a closer look at the factors influencing Nifty and Bank Nifty trends, and what investors might expect for the next trading day.

Nifty and Sensex Market Overview

On October 31, 2024, the market saw declines across major indices:

• Sensex Performance: Closed down by 553.12 points (0.69%), reaching 79,389.06.
• Nifty 50: Dropped 135.5 points (0.56%) to end at 24,205.30.

The trading session showed mixed activity: 2,559 stocks advanced, 1,188 declined, and 108 remained unchanged.

Top Gainers and Losers on Nifty

• Top Gainers: Cipla, L&T, Dr. Reddy’s Labs, Hero Motocorp, and ONGC showed resilience, providing some uplift to the index.
• Top Losers: Leading IT firms like Tech Mahindra, HCL Technologies, Infosys, TCS, and Wipro contributed heavily to the decline.

Sector Performance Analysis

The performance of various sectors was notable:

• IT Sector: Dropped almost 3%, heavily impacting the overall market.
• FMCG Sector: Experienced a 1% decrease.
• Banking Sector: Fell by 0.5%, indicating mild pressure on financial stocks.
• Pharma and Media Sectors: Both saw a 1.5% gain, signaling positive movement in these segments.

Additionally, the BSE Midcap index slipped by 0.3%, while the BSE Smallcap index climbed by 1.6%, reflecting positive investor sentiment in smaller companies.

Stock Predictions for October 31, 2024

Here are key stock predictions and levels to monitor:

Stock	Buy Above	Sell Below
Crompton	395	390
Divis Labs	5900	5840
Tata Chemicals	1138	1120
Tata Consumer	1030	1016

Nifty 50 Prediction for November 4, 2024

For the upcoming trading session, Nifty is likely to show movement based on global cues and critical resistance/support levels:

• Upside Potential: Nifty may rise if it surpasses the 24,250 mark.
• Downside Risk: A dip below 24,200 could signal further declines.

Currently, the Nifty 50 exhibits a bearish trend. Investors holding short positions may consider retaining them with a daily closing stop-loss set at 24,529 to manage risk.

Key Resistance and Support Levels for Nifty

• Resistance Levels: 24,250 and 24,500.
• Support Levels: 24,200 and 24,000.

Options Data for Nifty

• Highest Call Writing: At 24,250 (1.8 crore contracts), indicating resistance at this level.
• Highest Put Writing: At 24,200 (1.9 crore contracts), providing a strong support level.

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Bank Nifty Prediction for November 4, 2024

Bank Nifty appears relatively bullish, with potential upward momentum depending on market conditions and global cues:

• Upside Potential: A breakthrough above 52,000 could lead to further gains.
• Downside Risk: Bank Nifty might see declines if it dips below the 51,300 level.

For investors holding long positions in Bank Nifty, a daily closing stop-loss at 51,200 is advisable to minimize risk.

Key Resistance and Support Levels for Bank Nifty

• Resistance Levels: 52,000 and 52,500.
• Support Levels: 51,300 and 50,500.

Options Data for Bank Nifty

• Highest Call Writing: At 52,000 (20.5 lakh contracts), marking resistance.
• Highest Put Writing: At 51,300 (11.3 lakh contracts), indicating support.

Also Read: Understanding Sensex and Nifty: The Backbone of the Indian Share Market

Market Outlook and Trading Strategy

The market outlook for both Nifty and Bank Nifty on November 4, 2024, hinges on global economic trends and sector-specific performance. The following strategies may help investors navigate potential volatility:

1. Monitoring Key Levels: Keeping an eye on the key support and resistance levels is essential for managing risks in trading positions.
2. Sector-Specific Trends: IT sector pressures might continue to weigh on the index, while sectors like pharma and media could offer investment opportunities.
3. Option Writing Data: Option writing levels suggest significant support and resistance areas, aiding traders in making informed decisions.

The Nifty’s bearish stance and Bank Nifty’s resilience point to contrasting strategies for each index. Traders are encouraged to employ stop-losses and carefully analyze market cues to adapt to potential fluctuations.

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Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Stock market investments involve substantial risks, and past performance does not guarantee future results. Each investor must carefully assess their financial situation, risk tolerance, and goals before engaging in trading activities. Neither the author nor the publishing platform guarantees any specific outcome or profit from the use of this information.