The Nifty 50 and Bank Nifty remained under pressure for the second consecutive session on profit booking on Friday, with momentum indicators signaling caution after the October rally. If the index decisively breaks 25,700–25,670, the 25,500–25,400 levels are the next to watch, as selling pressure may widen below this zone. However, on the higher side, 25,900–26,000 is the immediate hurdle, followed by 26,100. Meanwhile, if the Bank Nifty decisively breaks 57,600 and 57,480 levels, weakness may be seen toward 57,200, and below it, 56,350 can’t be ruled out. However, 58,300 can act as an immediate resistance, followed by 58,600, experts said.
On October 31, the Nifty 50 slipped 156 points (0.6 percent) to 25,722, while the Bank Nifty fell 255 points (0.44 percent) to 57,776. Bears maintained their dominant position in market breadth, as about 1,720 shares declined compared to 1,080 advancing shares on the NSE.
Nifty Outlook and Strategy
Rajesh Bhosale, Technical Analyst at Angel One
While the last two weeks have been somewhat disheartening for the bulls, the overall performance in October has been remarkable, with Nifty gaining more than 4.5 percent month-on-month. Following this sharp upmove from the October lows of 24,600 and with indicators placed in the overbought zone, the index has been undergoing a time-wise correction over the past two weeks. However, given Friday’s decisive selling and a minor range breakdown, this consolidation could temporarily extend into a price-wise correction.
That said, the monthly candle has closed on a strong note, confirming a trendline breakout drawn from the all-time highs and the previous major top. Typically, such breakout zones tend to get retested before the primary uptrend resumes. Hence, traders are advised to maintain a positive bias and continue using dips as a buying opportunity.
The breakout zone around 25,650–25,600, coinciding with the 20-DEMA, now acts as an immediate support, followed by key retracement support near 25,500. On the upside, 26,000–26,200–26,300 remains the immediate resistance band, beyond which bullish momentum could resume in uncharted territory.
Key Resistance: 25,900, 26,000
Key Support: 25,600, 25,500
Strategy: Buy Nifty Futures on dips around 25,750, with a stop-loss of 25,650, targeting 26,300–26,400.
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
Nifty fell 73 points during the week and formed a small bearish candle with a long upper shadow on the weekly chart, indicating a short-term pause in its recent uptrend. The index is still above the medium-term downward-sloping trendline, which suggests a continued uptrend. On the downside, the support zone is between the 25,500 and 25,300 levels.
A sustained move above 26,000 could lead to buying interest towards the 26,100–26,300 levels. For the current week, we expect Nifty to trade within the range of 26,000 to 25,500 with a mixed bias. The weekly RSI remains above its reference line, reinforcing the overall bullish sentiment.
Key Resistance: 25,850, 26,000
Key Support: 25,650, 25,500
Strategy: Buy Nifty Futures around 25,650, with a stop-loss of 25,550, targeting 25,850–25,950.
Anshul Jain, Head of Research at Lakshmishree Investments
Nifty ended the week with another bearish shooting star, reinforcing caution at higher levels. As mentioned in last week’s outlook, further evidence was needed for bears to gain control — and that evidence now lies below the two-week low of 25,700. A decisive breach and sustained move below 25,700 would likely trigger heavy selling pressure, exposing the next key support at the daily overlapping defence zone around 25,669 — the final line of near-term defence for bulls.
A breakdown below 25,669 would further open the downside toward the nested overlapping support at 25,448, marking a deeper retracement phase. On the upside, rallies will encounter strong resistance between 25,800–25,860, where supply has repeatedly emerged. For any bullish momentum to resume, the index must close above this range on a daily basis. Until then, the bias remains cautious, with a clear focus on 25,700 as the make-or-break level for the coming week.
Key Resistance: 25,800, 25,860
Key Support: 25,669, 25,600
Strategy: Sell Nifty Futures below 25,700 and add below 25,669 for an immediate target of 25,600–25,448, with a stop-loss above 25,750.
Bank Nifty - Outlook and Positioning
Rajesh Bhosale, Technical Analyst at Angel One
After a robust rally in the first half of October, Bank Nifty has spent the last two weeks in a tight consolidation phase, oscillating within an 800-point range. This pause near record highs appears constructive, reinforcing the broader bullish setup. Notably, the index achieved its highest-ever monthly close, reflecting strong underlying momentum and hinting at the potential for new milestones ahead.
While the broader outlook remains positive, the emergence of a Doji candle on the weekly chart signals the likelihood of some near-term consolidation. A decisive move above the 58,500–58,600 zone would confirm a continuation of the uptrend, opening the door for further upside. On the downside, immediate support is placed near 57,600, with a stronger support zone between 57,200 and 56,900, coinciding with the 20-DEMA, expected to act as a cushion on any pullback.
Key Resistance: 58,000, 58,300
Key Support: 57,200, 56,900
Strategy: Buy Bank Nifty Futures on dips around 58,000, with a stop-loss of 57,700, targeting 58,800 / 59,000.
Rajesh Palviya, Senior Vice President Research (Head Technical Derivatives) at Axis Securities
The Bank Nifty finished the week on a flat note and formed a Doji candle on the weekly chart, remaining confined within the previous week's high–low range, which suggests a lack of strength and positive sentiment.
The chart structure indicates that if the index falls below the 57,400 level, it could trigger profit booking, with potential declines towards the 57,000 to 56,200 levels. On the other hand, if it moves above 58,300, we may see momentum increasing towards the 58,600 to 59,000 levels.
Looking ahead to the current week, we expect Bank Nifty to trade within the range of 56,500 to 58,300, with a mixed bias. The weekly RSI is above its reference line, confirming bullish momentum.
Key Resistance: 58,000, 58,400
Key Support: 57,600, 57,450
Strategy: Buy Bank Nifty Futures around 57,550, with a stop-loss of 57,350, targeting 58,000–58,200.
Anshul Jain, Head of Research at Lakshmishree Investments
Bank Nifty closed the week with another shooting star candle, but this time forming an inside bar on the weekly chart — indicating consolidation and late-week selling pressure. As highlighted last week, further confirmation is needed for bears to take control, and that evidence lies below the mother bar low of 57,482.
A decisive breach and sustained move below 57,480 would likely trigger fresh bearish momentum, driving the index toward the 10-week moving average near 56,600. This level also coincides with the daily nested overlapping defence zone at 56,770, creating a strong support band between 56,770–56,600.
On the upside, rallies are expected to face major supply near 58,050, where short-term profit booking and fresh shorts may emerge. Until Bank Nifty decisively clears this resistance or breaks below 57,480, the index is expected to remain range-bound with a bearish bias.
Key Resistance: 58,050, 58,200
Key Support: 56,770, 56,600
Strategy: Sell Bank Nifty Futures below 57,482 with a stop-loss above 57,700 for an immediate downside support zone of 56,770–56,600.
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.
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