Prepared by S Harish Chandan | SEBI Registered Research Analyst
Market outlook
Indian markets may begin Wednesday’s session on a flat note, following four consecutive sessions of strong gains. After the sharp recovery, some consolidation would be healthy. Though the short-term outlook remains positive, the immediate momentum indicators suggest that the market may take time to absorb recent gains.
Our view: A flat-to-soft opening, followed by possible volatility and consolidation over the next few sessions. The broader short-term trend remains positive, with 24,100 as our NIFTY 50 upside target after the market negotiates the current resistance zone.
What happened on 03 November?
Indian benchmarks extended their winning streak for a fourth consecutive session.
| Index | Closing level | Change |
|---|---|---|
| NIFTY 50 | 23,810.85 | +1.58% |
| SENSEX | 76,917.85 | +1.62% |
| BANK NIFTY | 55,540.05 | +0.98% |
| NIFTY MIDCAP 100 | 58,596.25 | +1.06% |
| NIFTY SMALLCAP 250 | 17,061.65 | +0.42% |
The rally was supported by buying in financials, private banks and consumer-facing stocks. HDFC Bank and ICICI Bank were among the key banking contributors.
NIFTY 50 – Top gainers
- BSE: +5.03%
- Nestle India: +4.47%
- Tata Consumer Products: +4.29%
- Asian Paints: +3.99%
- Bharti Airtel: +3.77%
NIFTY 50 – Top losers
- Power Grid: -3.04%
- SBI: -1.70%
- ONGC: -1.13%
- Adani Enterprises: -0.84%
- Tata Steel: -0.49%
The benchmarks have gained approximately 5% over the four-session rally. Earnings support, easing crude prices in the previous session and renewed foreign investor buying helped sentiment. However, the relatively modest advance in smaller stocks is worth watching.
FII and DII activity
Institutional activity remained supportive overall, although the buying was not shared equally.
Cash market activity – 03 November 2026
| Category | Net activity |
|---|---|
| FII/FPI | +₹6,836.81 crore |
| DII | -₹3,678.85 crore |
| Combined net flows | +₹3,157.96 crore |
FIIs were significant net buyers, while domestic institutions were net sellers. The combined institutional flow was positive. This is encouraging, but cash-market buying alone does not establish that foreign investors have turned structurally bullish. Their index futures positioning provides a more nuanced picture.
Derivatives positioning – NIFTY 50
The following option-chain snapshot is based on the 03 November closing data, with the 09 November expiry.
| Parameter | Reading |
|---|---|
| Total Call OI | 13.4 lakh |
| Change in Call OI | +5.4 lakh |
| Total Put OI | 15.3 lakh |
| Change in Put OI | +7.5 lakh |
| Put-Call Ratio (OI) | 1.14 |
| Max Pain | 23,600 |
| Major Call OI concentration | 24,000 |
| Major Put OI concentration | 23,000 |
What does this indicate?
- Put OI additions exceeded Call OI additions, keeping the overall PCR above 1.
- The 23,600 and 23,700 strikes saw meaningful Put additions, indicating interest in building downside positions or protection around these levels.
- The 24,000 strike attracted substantial Call OI additions, making it an important immediate hurdle.
- Further Call additions at 24,200 and 24,300 suggest that traders are also positioning for resistance above 24,000.
Our interpretation: The options structure is not outright bearish. However, the fresh Call additions around and above 24,000 suggest that the index may not move through this zone without some resistance.
The 23,600–23,700 area is worth monitoring for near-term support, while 24,000 remains the immediate upside hurdle.
Our interpretation: BANK NIFTY's PCR of 0.97 indicates a relatively balanced, marginally Call-heavy structure. The 55,000 zone is an important support reference, while 56,000–57,000 may act as an intermediate resistance area. A sustained move above these levels would improve the banking index's outlook.
What are FIIs doing in index futures?
The participant-wise positioning adds an important layer to the cash-market numbers.
| Participant | Net index futures position | Change during the session |
|---|---|---|
| FII | -2,02,757 | +30,442 |
| DII | +43,104 | +2,132 |
| Clients | +1,53,478 | -25,972 |
| Proprietary traders | +6,175 | -6,602 |
Net positions are long contracts minus short contracts. A positive change in the FII net position indicates that their net short position has reduced.
FIIs remain net short in index futures, but reduced their net short exposure by 30,442 contracts. This is consistent with short covering rather than a complete shift to net long positioning.
That distinction matters. Strong FII cash buying and a reduction in index futures shorts are supportive, but the remaining net short position suggests that institutional conviction has not yet turned unequivocally bullish.
Technical view – NIFTY 50
Our short-term outlook remains positive, but we are watching momentum closely.
The 5-minute and 15-minute RSI charts are showing divergences. These are early warning signs that the recent upward momentum may be losing strength.
They do not, by themselves, confirm a reversal. However, after a sharp four-session advance, they increase the possibility of a pause, consolidation or a minor corrective move. Four consecutive sessions of gains, positive FII cash flows and supportive Put additions in NIFTY have improved the market structure. However, the rally has been sharp. The RSI divergences on shorter timeframes suggest that some consolidation or volatility may be approaching.
We remain positive on the short-term trend considering the 1 hour RSI. Our expectation is for the market to digest recent gains before attempting a move towards 24,100 on NIFTY.
The next few sessions will be important. We would rather see a healthy consolidation followed by a sustained breakout than an immediate extension of the rally without adequate support.
NIFTY Pre Market Analysis - 04 Nov 2026 - Levels and outlook
- Immediate resistance: 24,000
- Upside objective: 24,100
- Near-term support zone to monitor: 23,572–23,436
- Broader view: Positive, subject to the market holding its important support levels.
We would prefer to see the market consolidate and establish a stronger base rather than chase the recent rally.
What to watch today
- Whether NIFTY sustains above the 23,800 region after opening.
- Price behaviour around the 24,000 resistance zone.
- Whether BANK NIFTY can hold above 55,000.
- Fresh Call and Put additions around key strikes.
- Whether FII cash buying continues and index futures shorts reduce further.
- Global market cues, crude oil prices and developments around geopolitical risks.
Research Analyst Details
S. Harish Chandan
SEBI Registered Research Analyst
SEBI Registration No.: INH000012768
BSE Enlistment No.: 5826
Website: https://raharishchandan.com
Contact: +91 88944 66882
Disclaimer
This market commentary is prepared for informational and analytical purposes only. It is not an offer, solicitation or recommendation to buy, sell or hold any securities or financial instruments.
The views and observations expressed are based on publicly available information and market data considered at the time of preparation. Market conditions can change, and past performance is not indicative of future results.
Investors should conduct their own due diligence and consult their financial advisers before making investment decisions. Derivatives and leveraged trading involve substantial risk and may not be suitable for all investors.
Please refer to the applicable research disclosures and terms published on our website.
Reference Websites for further data & study:
NSE India – Live Equity Market: https://www.nseindia.com/market-data/live-equity-market
NSE India – Historical Index Data: https://www.nseindia.com/reports-indices-historical-index-data
NSE India – Participant-wise Open Interest: https://www.nseindia.com/all-reports-derivatives
NSE India – Option Chain: https://www.nseindia.com/option-chain
NSE Indices – NIFTY 50 Factsheet: https://www.niftyindices.com/Factsheet/ind_nifty50.pdf
NSE India – Corporate Filings and Financial Results: https://www.nseindia.com/companies-listing/corporate-filings-financial-results
Reliance Industries – Investor Relations: https://www.ril.com/investors
BSE India – Corporate Announcements: https://www.bseindia.com/corporates/ann.html
SEBI – Official Website: https://www.sebi.gov.in/
NSDL – FPI Investment Statistics: https://www.fpi.nsdl.co.in/web/Reports/Latest.aspx
CDSL – FPI Statistics: https://www.cdslindia.com/Publications/ForeignPortInvestor.html
PPAC (Petroleum Planning & Analysis Cell), Ministry of Petroleum & Natural Gas: https://ppac.gov.in/
Ministry of Commerce & Industry – Trade and Economic Data: https://commerce.gov.in/
RBI – Database on Indian Economy: https://data.rbi.org.in/
