Trading Plan: Can Nifty sustain above 26,000, Bank Nifty defend the 58,000 zone?

Nifty Trading Plan for October 30

The momentum remains strong in the benchmark Nifty 50 as well as the banking index. The Nifty 50 achieved the 26,000 mark for the first time since September 27, 2024, but it needs to defend this level consistently for an upmove toward 26,300, followed by 26,500. Until then, consolidation and range-bound trading may continue, with support at the 25,900–25,800 levels. Meanwhile, as long as the Bank Nifty stays above the 58,000 zone, a gradual upward march toward the 58,500–58,600 levels, followed by 59,000, is possible. However, below it, 57,700–57,600 can act as support, experts said.

On October 29, the Nifty 50 touched an intraday high-low of 26,098–25,960 before finishing at 26,054, up 118 points (0.45 percent), while the Bank Nifty rose 171 points (0.29 percent) to close at 58,385 after recording a day’s high-low of 58,470–58,087. Market breadth was supported by the bulls, as about 1,821 shares saw buying interest compared to 996 declining shares on the NSE.

Nifty Outlook and Strategy

Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities

The benchmark index Nifty has decisively broken out of a downward-sloping trendline, marking a significant shift in sentiment. Post-breakout, the index has maintained a strong upward trajectory, reflecting robust bullish undertones. Notably, since the beginning of October, Nifty has demonstrated consistent strength, with bullish momentum dominating the entire month.

While there was a phase of consolidation and a minor pullback during the month, the index quickly regained its footing and resumed its northward march. As of now, Nifty is a stone’s throw away from its all-time high, indicating strong investor confidence and positive market breadth.

From a technical standpoint, all key moving averages are aligned in favour of the bulls, and momentum indicators continue to signal strength. This confluence of bullish signals suggests that the index is well-positioned to extend its rally in the near term.

Going ahead, we expect Nifty to test levels of 26,300, followed by 26,500 in the short term. On the downside, the zone of 25,750–25,700 is likely to act as a crucial support area, cushioning any short-term declines.

Key Resistance: 26,300, 26,500

Key Support: 25,750, 25,700

Strategy: Buy Nifty Futures in the 26,350–26,430 zone, with a stop-loss at 26,280, targeting 26,700.

Rupak De, Senior Technical Analyst at LKP Securities

Optimism over progress in the US-China deal took the Nifty 50 higher. Sentiment remains intact with a strong bullish technical setup. Initial support is placed at 25,850, below which the index might slip into a consolidation zone.

On the higher end, once Nifty decisively moves above 26,100, it is likely to advance toward 26,300/26,500 in the short term.

Key Resistance: 26,300, 26,500

Key Support: 25,850, 25,700

Strategy: Buy Nifty 26,200 strike Call of November 4 expiry at Rs 115, with a stop-loss at Rs 84, targeting Rs 160.

Bank Nifty - Outlook and Positioning

Sudeep Shah, Head - Technical Research and Derivatives at SBI Securities

The banking benchmark index Bank Nifty has emerged as a clear outperformer, outpacing the broader market and playing a pivotal role in driving the upward momentum of the frontline indices.

Recently, Bank Nifty registered a cup pattern breakout — a classic bullish continuation formation. Following the breakout, the index underwent a healthy retest of the breakout zone, reaffirming its strength and setting the stage for a renewed rally. It has since resumed its northward journey with conviction.

Currently trading at all-time high levels, Bank Nifty is supported by a strong technical setup. All major moving averages are trending upward, and momentum-based indicators are firmly in bullish territory, suggesting that the rally has legs and could extend further in the near term.

The index’s performance underscores the resilience and strength of the banking sector, which continues to attract investor interest. We believe the index is likely to test levels of 59,000, followed by 59,500 in the short term, while on the downside, the zone of 57,600–57,500 will act as an important support area for the index.

Key Resistance: 59,000, 59,500

Key Support: 57,600, 57,500

Strategy: Buy Bank Nifty Futures between 58,750–59,100, with a stop-loss at 58,500, targeting 59,700–60,000.

Rupak De, Senior Technical Analyst at LKP Securities

The Bank Nifty registered an all-time high on a closing basis as optimism around the sector continued to prevail. The technical setup looks very strong, with the index trading well above the rising moving averages across multiple timeframes. The RSI is in the high-momentum zone and trending upward.

In the short term, the trend is likely to remain positive with the potential to reach 58,800–59,000. On the lower end, support is placed at 58,000.

Key Resistance: 58,500, 58,800

Key Support: 58,000, 57,700

Strategy: Buy Bank Nifty November 58,500 strike Call at Rs 880, with a stop-loss at Rs 780, targeting Rs 1,050.

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.