Nifty Trade Setup for November 4: Nifty 50 Surges 1.58%, Crosses 23,800; Fibonacci Resistance at 24,216

The Nifty 50 extended its winning momentum on Tuesday, closing at 23,810.85, up 370.05 points or 1.58%. The index opened at 23,582.25, touched an intraday high of 23,810.85 and a low of 23,482.80. Strong buying interest pushed the benchmark higher, with the index breaking above multiple resistance zones and continuing its upward trajectory.

Market Breadth: Broad-Based Buying Supports the Rally

Market breadth remained firmly positive, with 38 stocks advancing and 12 declining in the Nifty 50. The Nifty FMCG, Nifty Realty and Nifty Consumption sectors emerged as key contributors to the session. Strong participation across sectors indicates that buying interest remains broad-based, supporting the ongoing bullish sentiment in the benchmark index.

Nifty Technical Setup: Index Breaks Above Key Resistance Zones

On the daily chart, the Nifty 50 has moved decisively above its short-term EMAs at 23,125.42 and 22,898.99, signalling a strengthening trend. The index has also crossed the 61.8% Fibonacci retracement level at 23,783.05 and is trading above it, indicating a strong recovery from the October low of 22,187.55. The next crucial Fibonacci resistance is placed at the 78.6% retracement level of 24,216.40, followed by the previous swing high near 24,769.30.

On the hourly chart, the index is comfortably above all key EMAs, confirming strong bullish momentum. However, the sharp rise has pushed the index into an important resistance zone, where some consolidation cannot be ruled out.

RSI and Momentum Indicators: Strong Momentum, Overbought Signals Emerge

The daily RSI has climbed to 66.59, reflecting strong bullish momentum. The hourly RSI stands at 83.53, while the 15-minute RSI is at 75.41, both indicating overbought conditions. Although momentum remains firmly positive across timeframes, elevated RSI readings suggest the possibility of short-term consolidation or profit booking after the sharp rally.

Key Levels to Track for Nifty on November 4

The Nifty 50 continues to maintain a strong bullish structure, supported by positive market breadth, a decisive breakout above the 61.8% Fibonacci retracement at 23,783.05 and rising RSI readings. Sustaining above this level could keep the momentum intact and lead to a move towards 24,000–24,216.40, the next major Fibonacci resistance zone. However, overbought conditions on the hourly and 15-minute charts warrant caution, as some consolidation or profit booking cannot be ruled out. A decline below 23,478.45 could trigger a pullback towards 23,183.10.