Nifty Trade Setup for November 3: Nifty 50 Surges 1.68%, Breaks Above Crucial Resistance

The Nifty 50 witnessed a strong rally on Monday, closing at 23,440.80, up 387.70 points or 1.68%. The index opened at 23,222.30, recorded an intraday high of 23,440.80 and a low of 23,207.05. Strong buying interest lifted the index above the crucial 23,076.90 resistance, indicating an improvement in market sentiment and strengthening bullish momentum.

Market Breadth: Bulls Dominate the Session

Market breadth remained firmly positive, with 38 stocks advancing and 12 declining in the Nifty 50. The Nifty Oil & Gas, Nifty Commodities and Nifty Energy sectors emerged as key contributors to the rally. Strong participation across sectors and broad-based buying support indicate improving confidence among market participants, strengthening the positive outlook for the benchmark index.

Nifty Technical Setup: Breakout Above Key Resistance

On the daily chart, the Nifty 50 closed above its short-term EMAs at 22,954.07 and 22,902.48, signalling a strong recovery. The index is now approaching the higher EMA levels at 23,170.67 and 23,511.42, which may act as the next resistance zones. On the hourly chart, the index is trading above all four key EMAs, confirming strong short-term momentum. The breakout above 23,076.90 is technically significant, with the next hurdle around 23,494.55.

RSI and Momentum Indicators: Bullish Momentum Strengthens

The daily RSI climbed to 61.03, moving comfortably above the 50 mark and indicating strengthening bullish momentum. The hourly RSI stands at 74.34, while the 15-minute RSI is at 75.41, both entering overbought territory. Although momentum remains strong across timeframes, elevated short-term RSI readings suggest the possibility of some consolidation or profit booking before the next directional move.

Key Levels to Track for Nifty on November 3

The Nifty 50 has strengthened its bullish structure following a decisive move above 23,076.90, supported by strong market breadth and rising RSI readings. Sustaining above 23,263–23,170 could keep the momentum intact and pave the way towards 23,494.55 and the 23,511–23,565 zone. However, the elevated hourly and 15-minute RSI readings warrant caution against chasing prices at higher levels. A move below 23,170 could trigger short-term consolidation towards 22,954–22,902.