Nifty to hover near 26,000 as bulls await breakout, key levels to watch on October 28

Nifty, Sensex may see a muted open in trade on October 28.

The Nifty 50 and Sensex might see a muted open in trade today, echoing muted cues from Asian markets on Tuesday, October 28. The broader tone for Indian markets remains cautiously bullish, supported by better-than-expected Q2 earnings and steady domestic institutional flows that continue to underpin market momentum.

At 7.45 a.m., the GIFT Nifty index was trading at 26,052, lower by 10 points or 0.04 percent.

However, experts noted that the lingering uncertainty around the India-U.S. trade deal is tempering expectations, prompting bouts of profit-booking at higher levels as investors weigh near-term risks against the strong underlying fundamentals.

Overnight, U.S. indices closed at all-time highs as Chinese and U.S. trade negotiators lined up an array of diplomatic wins for Donald Trump and Xi Jinping to unveil at a summit this week. Further, investors looked forward to a week packed with high-profile technology earnings and a widely expected U.S. interest rate cut.

Asian shares consolidated recent hefty gains on Tuesday as hopes for an easing in global trade tensions kept risk appetites keen, while the bull run in tech stocks counted on a bumper round of big-cap earnings this week. Equity gauges in Japan and South Korea retreated from record highs set in the previous session, while shares in Australia also fell at the open.

Key levels to watch on October 28

The Nifty 50 is likely to open on a steady note around 25,950–26,000, with immediate support placed at 25,920 and 25,827, while resistance is seen near 26,100–26,200.

"A decisive move above the 26,000 mark could reinforce positive sentiment and open the door for an upmove toward 26,300, whereas a breach below 25,920 may invite short-term profit booking, dragging the index toward 25,800–25,660," said Ponmudi R, CEO of Enrich Money.

For the Sensex, he noted that the index  continues to respect its short-term rising trendline, remaining in a healthy consolidation phase after its recent rally to 85,100. A sustained close above 85,200 would reaffirm bullish momentum, signaling the potential for a fresh leg higher into uncharted territory.

"On the upside, immediate resistance lies at 85,000–85,200, and a decisive breakout above this zone could open the path toward 85,500–85,800. On the downside, strong support is placed at 84,500, followed by 84,000, coinciding with the previous breakout region."

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