Nifty and Bank Nifty poised for trend shift with key levels in focus

After a challenging week, the markets rebounded strongly on October 28, setting a positive tone for the new week. The Nifty 50 approached the significant 24,500 mark, widely regarded as a key resistance point in the coming sessions. Should the index manage to hold above this level amid anticipated market volatility, a rally toward the 24,700–24,900 range may follow. On the downside, experts identify 24,000 as a critical support level for maintaining upward momentum.

Bank Nifty also rallied above 51,000, with a potential upside target of 51,500–52,000, assuming it can maintain support around the 50,400 mark.

Market Momentum and Expert Insights

The Nifty 50 closed 158 points higher at 24,339, while the Bank Nifty rose 472 points to settle at 51,259, reflecting renewed investor confidence. Jay Thakkar, ICICI Securities' Head of Derivatives and Quant Research, views this as a sign of near-term support between 24,000 and 24,100. He expects resistance near 24,560, 24,710, and 24,860, indicating a positive short-term outlook. A recovery in large-cap stocks is also anticipated, as positive divergence in momentum indicators signals a reversal from oversold conditions.

Mehul Kothari from Anand Rathi concurs, suggesting a move above 24,500 could signal a trend reversal on intraday charts, while 24,000 remains a crucial support.

Key Trading Levels and Strategies

Experts agree on 24,500 as an immediate resistance level for Nifty, with higher resistance at 24,600, 24,800, and ultimately 25,100. Recommended trading strategies include buying on dips near 24,200–24,250, targeting 24,500, 24,600, and 24,800. Similarly, aggressive traders may consider buying with a stop-loss of 24,075, aiming for the 24,700–24,900 range.

Bank Nifty Outlook

Bank Nifty, after climbing approximately 800 points, faces resistance near 51,500, a level that may unlock additional gains up to 52,000 if breached. However, sustained support near 50,400 is necessary for a continued recovery. Thakkar highlights that the MACD (Moving Average Convergence Divergence) still shows bearish signals but expects a short-term range of 50,400–52,000. Santosh Meena from Swastika Investmart notes that a close above 52,000 could trigger a short-covering rally up to 52,600.

Support and Resistance Levels

Nifty: Resistance at 24,500, 24,600, and 24,800; support at 24,200, 24,000

Bank Nifty: Resistance at 51,500, 52,000; support at 51,000, 50,400

The market’s ability to sustain above these resistance points may signal a short-term rally, while breaks below the support levels could indicate further consolidation.

Disclaimer: Market analysis reflects the opinions of experts and does not constitute financial advice. Investors should consult certified advisors before making investment decisions.

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