Trading Plan: Can Nifty 50, Bank Nifty break previous day’s high on Muhurat Trading?

Nifty Trading Plan for Muhurat Trading

The Nifty 50 remained healthy with strong technical and momentum indicators, showing a consistent upward journey in the current month despite intermittent consolidation. Hence, the index is expected to face resistance at the 25,900–26,000 zone on the Muhurat Trading day, while support is placed at 25,700, followed by 25,500 as a crucial level. Meanwhile, the Bank Nifty needs to reclaim and sustain above the previous day’s high (58,262) for a move toward the 58,500 hurdle. However, immediate support is seen at 57,800, followed by the 57,600 zone, according to experts.

On October 20, the Nifty 50 advanced 133 points (0.52 percent) to close at 25,843 (after hitting an intraday high-low of 25,926-25,789) , while the Bank Nifty jumped 320 points (0.55 percent) to settle at 58,033 (after touching a day's high of 58,262 and low of 57,873). The market breadth turned positive, with 1,641 shares gaining against 1,211 declining on the NSE.

Nifty Outlook and Strategy

Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities

The Nifty has closed in positive territory for the fourth consecutive day, which is a positive sign in the near term. On the lower side, 25,500 is immediate support, whereas 26,000 acts as immediate resistance as it has the highest Call base. Above 26,000, the index is likely to inch towards the 26,500 level.

FIIs have been covering shorts on the index, and the net long percentage has jumped to approximately 25%, as net index shorts have fallen below 1.50 lakh contracts. The PCR (Put-Call Ratio) is above 1, at 1.03, which is a bullish sign in the near term.

Key Resistance: 26,500

Key Support: 25,500

Strategy: Buy Nifty Futures on dips around 25,700, with a stop-loss of 25,500, targeting 26,500.

Jigar S Patel, Senior Manager - Equity Research at Anand Rathi

At the current juncture, the Nifty 50 has witnessed a non-stop rally of over 1,300 points from the recent bottom of 24,588. An AB=CD bearish pattern has emerged, indicating possible exhaustion of the uptrend.

On the hourly chart, the ROC (25-period) is showing negative divergence, signalling weakening momentum. This technical setup suggests the index may face short-term profit booking or a pullback after the sharp upmove. Hence, a dip of around 200 points cannot be ruled out during the Muhurat trading session, as traders may prefer to lock in gains at higher levels.

Key Resistance: 25,900, 26,000

Key Support: 25,700, 25,600

Strategy: Sell Nifty Futures in the 25,950–25,900 zone, with a stop-loss of 26,100, targeting 25,750.

Arun Kumar Mantri, Founder of Mantri FinMart

Nifty has again shown smart moves in the last few days and is now trading well above the key support zones of 25,500–25,600 on the lower side. The overall trend of the index is bullish, though some profit booking cannot be ruled out after the recent sharp upmove.

Any dips towards 25,650–25,700 will be a good buying opportunity for short-term traders. Overall, we expect the markets to consolidate with strong bullish bias in the broad range of 25,700–26,200 for the short term.

Key Resistance: 26,050, 26,180

Key Support: 25,700, 25,750

Strategy: We advise short-term traders to adopt a “buy on dips” approach toward 25,700 (spot levels), keeping a strict stop-loss below 25,600, with targets at 26,050 and 26,150 levels.

Bank Nifty - Outlook and Positioning

Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities

Bank Nifty has closed well above the 57,000 level, where it previously had a huge Call base before the breakout. As per options data, 57,000 is now immediate support, with the highest Put base. The PCR has also moved well above 1, which is a bullish sign in the near term.

Until the 57,000 level is broken, the overall bias remains positive for banking. Banking and Financials have made lifetime highs once again and have outperformed the Nifty.

Nifty PSU Banks have witnessed long build-up, while Nifty Private Sector Banks have seen short covering. These sectors, which contribute more than one-third of the Nifty by weight, look absolutely positive from an investment point of view.

Key Resistance: 59,000

Key Support: 57,500, 57,000

Strategy: Buy Bank Nifty Futures near 58,000, and add on dips around 57,500, targeting 59,000.

Jigar S Patel, Senior Manager - Equity Research at Anand Rathi

At the current juncture, the Nifty Bank has witnessed a sharp rally of nearly 4,000 points from the recent bottom of 54,226.60. On the daily chart, the 9 SMA is positioned around 56,880, indicating that a reversion to the mean cannot be ruled out after the strong upside move.

Additionally, negative divergence in the hourly ROC (25-period) has emerged, hinting at weakening momentum. Given these technical signals, a dip of around 500–600 points is possible during the Muhurat trading session, as traders may choose to book profits at elevated levels.

Key Resistance: 58,300, 58,500

Key Support: 57,700, 57,500

Strategy: Sell Bank Nifty Futures in the 58,200–58,000 zone, with a stop-loss of 58,400, targeting 57,500.

Arun Kumar Mantri, Founder of Mantri FinMart

Bank Nifty has been one of the star performers in the recent past and is now trading at fresh all-time highs after a strong upmove. The overall trend of the banking index is very bullish, and any minor pullbacks should be used as a buying opportunity for short-term long trades.

The support for the index is around 57,400–57,450, while 58,350–58,450 will be the next resistance zones for the next 2–3 sessions.

Key Resistance: 58,450, 58,500

Key Support: 57,400, 57,450

Strategy: Aggressive traders may go long in the Bank Nifty index on dips around 58,100–58,200, keeping a strict stop-loss below 57,800, targeting 58,900–59,000+ on the higher side.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.