Nifty Falls Sharply, Ends Below 20-DEMA; Kalpataru Projects, Sagility Recommended for Buying

On Tuesday, November 4, the Nifty index opened 19 points lower and continued its downward trend throughout the session, ultimately closing at 25,598, a fall of 166 points. For the first time since October 3, 2025, the Nifty closed below its 20-day Exponential Moving Average (20-DEMA), which stood at 25,608. The index has formed a 'Double Top' pattern near the 26,100 mark, and has now confirmed a 'Lower Bottom' on the daily chart, signaling a bearish outlook for the short term.

The next immediate support level for the Nifty is observed near its previous swing high of 25,448. On the upside, resistance has shifted lower to 25,718. Following indecision candlestick patterns on the weekly chart, the Nifty experienced follow-up selling, indicating caution. This bearish implication will only be negated if the Nifty manages to move above the 26,100 resistance level.

In terms of investment opportunities, analysts recommend buying two stocks: * **Kalpataru Projects International Limited**: Currently trading at ₹1,315, it is recommended to buy with a price target of ₹1,399 and a stop-loss of ₹1,241. The stock showed a breakout from multi-week consolidation with increased volumes on the week ended October 24, 2025. It is trading above all key moving averages, indicating a bullish trend across all time frames, supported by strong indicators and oscillators. * **Sagility**: With a current market price (CMP) of ₹51.62, it is advised to buy with a target of ₹59 and a stop-loss of ₹49.6. The stock broke out from a multi-week consolidation with rising volumes on the week ended October 31, 2025, and is also trading above its key moving averages, indicating a bullish trend.

Impact: This news is significant for the Indian stock market. The Nifty's breach of its 20-DEMA and confirmation of bearish patterns can lead to a broader market correction or sustained downward pressure, impacting investor sentiment negatively. However, the specific stock recommendations offer potential buying opportunities for traders and investors looking for short-term gains based on technical analysis. Rating: 8/10

Heading 'Difficult Terms': * **20-DEMA (20-day Exponential Moving Average)**: A technical indicator that averages the closing prices of a stock or index over the last 20 days, giving more weight to recent prices. It helps identify short-term trends. * **Double Top**: A chart pattern that looks like the letter 'M' and is formed after a prolonged uptrend. It suggests that the upward momentum is weakening and a reversal to a downtrend is likely. * **Lower Bottom**: In a downtrend, a lower bottom is a price trough that is lower than the previous trough. It confirms the continuation of a bearish trend. * **Consolidation**: A period where a stock's price trades within a relatively narrow range, indicating a balance between buyers and sellers, often preceding a significant price move. * **Moving Averages**: Calculated by averaging the price of a security over a specific period, these are used to identify trends and potential support/resistance levels. * **Indicators and Oscillators**: Technical tools used by traders to analyze price and volume data to forecast future price movements. Oscillators typically fluctuate between fixed levels and help identify overbought or oversold conditions.