Nifty Trade Setup for November 2: Nifty 50 Holds Above 23,000, Faces Resistance Near 23,076

The Nifty 50 continued its upward move on Friday, closing at 23,053.10, up 116.35 points or 0.51%. The index opened at 22,964.50, touched an intraday high of 23,118.10 and a low of 22,905.10. Although the index crossed the 23,076.90 resistance level during the session, it failed to sustain above it and closed slightly below this crucial zone.

Market Breadth: Bulls Maintain an Edge

Market breadth remained positive, with 28 stocks advancing and 22 declining in the Nifty 50. The Nifty IT, Pharma and Healthcare sectors supported the market, indicating continued buying interest in select heavyweight and sector-specific stocks. The positive breadth supports the ongoing recovery, although the relatively narrow gap between advances and declines suggests that participation remains selective.

Nifty Technical Setup: Index Trades Above Key Moving Averages

On the daily chart, the Nifty 50 closed above its short-term EMAs at 22,832.38 and 22,845.81, indicating an improvement in the near-term trend. However, the index continues to trade below the higher EMAs at 23,159.66 and 23,512.68, which may act as resistance. On the hourly chart, the index is trading above all four key EMAs, reflecting positive short-term momentum. The 23,076.90 level remains an important hurdle for the next session.

RSI and Momentum Indicators: Momentum Remains Positive

The daily RSI improved to 53.50, moving above the 50 mark and indicating strengthening momentum. The hourly RSI stands at 65.75, reflecting strong near-term buying interest, while the 15-minute RSI is at 57.74, suggesting that intraday momentum remains positive without entering overbought territory. Overall, the indicators support the recovery, but a sustained move above resistance is required to strengthen the bullish outlook.

Key Levels to Track for Nifty on November 2

The Nifty 50 maintains a positive short-term structure, supported by favourable market breadth, improving daily RSI and trading above its key short-term moving averages. However, the inability to sustain above 23,076.90 indicates that selling pressure remains near this resistance zone. A decisive close above 23,076.90 could open the door towards 23,159.66. On the downside, 22,900–22,997 is the immediate support zone, followed by 22,832–22,846. A break below this support area could weaken the recovery and increase the possibility of a retest of lower levels.