Sensex may open gap-up, can Nifty top 26,000? Key levels to watch on October 20

Nifty 50, Sensex poised to see a gap-up start.

Dalal Street could see a sharp jump on open, following strong earnings show from index heavy-weights such as HDFC Bank, ICICI Bank, and Reliance Industries on Monday, October 20. At 7.10 a.m., the GIFT Nifty index was quoting 25,977.5, higher by 222 points or 0.9 percent.

The festive fever has infected the bulls, who have driven the benchmark indices Nifty 50 and Sensex higher by two percent over the past three sessions. Further, the headline banking index Bank Nifty will be closely watched in trade. In the previous session, the Bank Nifty recorded a fresh lifetime high of 57,830 before closing at 57,713.

The tone across Indian equities remains constructive, as resilient local inflows continue to offset global uncertainties, with broader sentiment buoyed by stable macros and festive optimism. India remains one of the few markets globally showing both liquidity strength and directional clarity, noted experts.

On Friday, Wall Street's frontline indicis gained amid softening of the trade tensions between U.S. and China. The Dow Jones settled 0.52 percent, while the S&P 500 rose 0.53 percent, while the Nasdaq Composite gained 0.52 percent. Asian stocks opened higher on Monday following two consecutive weeks of declines as easing trade tensions between the world’s largest economies bolstered sentiment.

Key levels to watch on October 20

"The Nifty 50 has firmly held above its breakout zone at 25,700, confirming continuation of the uptrend. Immediate resistance lies in the 25,900–26,300 band, and a decisive close above this could trigger the next leg higher toward 26,500–27,000. On the downside, support is seen at 25,600–25,450, marking a crucial demand zone," said Ponmudi R, CEO of Enrich Money.

On the Bank Nifty front, the immediate resistance is seen around 58,000–58,500, and a breakout above this level could open the path toward 59,000–60,000.

The trading strategy continues to favor buy-on-dips in quality large caps, particularly in banks, autos, and consumption-driven sectors, while selective caution is advised in metals and export counters linked to China’s slowdown.

Also Read | Bank Nifty could extend record-breaking run on positive shows from HDFC Bank, ICICI Bank

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