Trading Plan: Can Nifty 50, Bank Nifty bulls take a breather after significant run up?

Nifty Trading Plan for October 08

The Nifty 50, as expected, hit the 25,200 zone but could not sustain there due to some profit booking at higher zones. Going ahead, 25,200–25,300 is expected to be the immediate hurdle for the Nifty 50, as above it, 25,450 (September swing high) is the level to watch. However, sustaining below it can lead to consolidation with support at 25,000–24,900. Meanwhile, as long as the Bank Nifty defends 56,000, the rally toward the 56,500–56,800 zone followed by 57,000 is likely. However, falling decisively below it can open the door to 55,700, the crucial support zone, according to experts.

On October 7, the Nifty 50 rose 31 points to close at 25,108, and the Bank Nifty climbed 135 points to 56,239 after profit booking in the late hour of trade. However, the market breadth was dominated by bears. A total of 1,585 shares saw selling pressure compared to 1,234 rising shares on the NSE.

Nifty Outlook and Strategy

Nandish Shah - Deputy Vice President at HDFC Securities

The Nifty rose for the fourth consecutive session to close at a two-week high. The short-term trend of the Nifty remains strong as it is placed above its 5-, 11-, 20-, and 50-day DMAs. Momentum indicators and oscillators such as RSI and MFI are signaling strength in the current uptrend. The FIIs' long-to-short ratio in Index Futures is at an all-time low level of 0.08. This extremely oversold level suggests a higher possibility of short covering by them in the coming days, which augurs well for the markets.

On the higher side, immediate resistance is placed in the vicinity of 25,200–25,300 levels, where we have seen Call writing in the weekly options. On the downside, immediate support for the Nifty is placed at 24,950 levels, where the 11- and 20-day EMAs are placed, with the 24,800 level serving as the next major support. Therefore, we recommend a buy-on-dips strategy in Nifty with a stop-loss at 24,800 levels.

Key Resistance: 25,220, 25,330

Key Support: 24,950, 24,800

Strategy: Buy Nifty Futures around 24,950, with a stop-loss of 24,800, targeting 25,220 and 25,330 (cash levels).

Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors

The daily trend, as per the 3 candlestick rules (high above prior high, low above prior low, and close above prior high), is still on the buy side despite Nifty forming a higher wick on the upside. At the start of October, Nifty reversed from the timeline support and showed a 2% rise despite FIIs’ continuous selling. This rise has retraced 50% of the prior fall that started in September 2025. On the daily chart, Nifty has finally closed above the mid-Bollinger Bands. Now, with follow-up buying, we can expect a move towards the upper bands (near 25,470 levels).

On the downside, 24,728 is the crucial support. A breach below it will be the first sign of trend reversal. On the upside, a break above 25,220 can push prices higher towards 25,361, followed by 25,470, which is an upper bands level.

Key Resistance: 25,470

Key Support: 24,728

Strategy: Long positions can be created above 25,220 with a stop-loss of 25,080, targeting 25,361 followed by 25,470 levels.

Arun Kumar Mantri, Founder of Mantri FinMart

The Nifty has managed to conquer the psychological mark of 25,000 on the charts, with strong support now placed around 24,900–25,000 on the lower side, where technical short-term moving averages are placed, followed by good open interest addition in the Puts of the next weekly options expiry.

The trend of the index is bullish while it holds above the 24,900–25,000 zone on a closing basis. Overall, we expect the markets to consolidate in the broad range of 24,900–25,400 in the short-term time frame with a neutral bias.

Key Resistance: 25,260, 25320

Key Support: 24,900, 24,950

Strategy: We advise short-term traders to adopt a “buy-on-dips” approach in the markets toward 24,950–25,000 (spot levels), keeping a strict stop-loss below 24,900 and targeting 25,250 and 25,300 levels.

Bank Nifty - Outlook and Positioning

Nandish Shah - Deputy Vice President at HDFC Securities

Bank Nifty continued its upward journey for the sixth day on the trot to close at the highest level since July 25. The short-term trend remains firmly bullish as it is forming a bullish higher-top higher-bottom formation on the daily chart. Key momentum indicators and oscillators such as the RSI and MFI are in rising mode and placed above 50 on the daily chart, suggesting strength in the current rally.

In the Put options, the highest open interest addition was seen at the 56,000 strike price, suggesting support in the range of 55,500–56,000 levels. The oversold level of FIIs' long-to-short ratio in the Index Futures segment points to a higher possibility of short covering by them in the coming days, which augurs well for the markets. Considering the sharp run during the last six days, we recommend a buy-on-dips strategy in Bank Nifty with a stop-loss at 55,500 levels.

Key Resistance: 56,578, 57,100

Key Support: 56,025, 55,500

Strategy: Buy Bank Nifty Futures around 56,000, with a stop-loss of 55,500, targeting 56,578 and 57,100.

Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors

Since the start of October 2025, Bank Nifty has shown a rally of more than 3%, clearly outperforming Nifty. Private banks were the major contributors to this rally. Over the past 3 days, the index has been closing above the 50-day EMA and has also been closing above the previous day's high consecutively. These factors suggest strength in the upward trend.

In Monday’s session, the index gave a breakout of the prior swing high (near 55,800 levels) and also broke above an Inverse H&S pattern, which is a strong bullish sign. Based on this pattern, Target 1 comes near 57,100 levels, and eventually, it can move to final targets of 57,500 levels, which is close to the lifetime high.

The current trend for Bank Nifty is on the buy side, and one can aim for targets of 56,630 followed by 57,100 levels. On the downside, 55,700 is the crucial support.

Key Resistance: 57,100

Key Support: 55,700

Strategy: Long positions can be created if Bank Nifty gives a 15-minute close above 56,400 with a stop-loss of 56,170 and a target of 56,630 followed by 56,800 levels.

Arun Kumar Mantri, Founder of Mantri FinMart

Bank Nifty has been in the driving seat over the past few sessions, fueling gains in the overall market sentiment. The index has given a breakout above the 55,700 mark, surpassing September highs, and is now consolidating with a positive bias. The overall short-term trend of the index seems to be bullish while it holds above 55,700 on the lower side. Meanwhile, above 56,500, the next leg of short covering and breakout can be witnessed in the near term.

Key Resistance: 56,550, 56,800

Key Support: 55,600, 55,700

Strategy: Aggressive traders may go long in the banking index on dips around 55,900–56,000, keeping a strict stop-loss below 55,600, targeting 56,700+ 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.