Trading Plan: Can Nifty 50 defend 22,700, Bank Nifty hold above 54,000 amid caution ahead of F&O expiry?

On the upside, the index needs to clear the 22,800–22,850 hurdle to extend its gains towards the crucial resistance level of 23,200. Meanwhile, the Bank Nifty needs to hold above 54,000, as a breach of this level could intensify selling pressure and drag the index towards support at 53,800-53,700. On the upside, the 55,000–55,200 range will be the key zone to watch, according to experts. On October 26, the Nifty 50 rose 153 points, or 0.68 percent, to close at 22,753, while the Bank Nifty gained 79 points, or 0.15 percent, to settle at 54,367.

Market breadth turned positive on the NSE, with 1,867 shares advancing against 1,407 declining. Nifty Outlook and Strategy Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities The Nifty witnessed a recovery on Monday after declining for four consecutive sessions. The index rebounded from its intraday lows, indicating buying interest at lower levels. However, a single session of positive movement is insufficient to confirm a reversal in the prevailing corrective trend.

The broader market remains sensitive to elevated crude oil prices, geopolitical uncertainty and the upcoming US Federal Reserve policy decision. These factors, along with the ongoing corporate earnings season, are likely to keep volatility elevated. From a technical perspective, the 22,500–22,400 zone will be an important support area, as a sustained break below this range could expose the index to further downside towards 22,200 and 22,000.

On the upside, 22,900–23,000 is the immediate resistance zone, followed by 23,200. The index needs to reclaim and sustain above 23,000 to improve its near-term technical outlook and create the possibility of a recovery towards higher levels. Until then, rallies could encounter selling pressure. Given the sharp correction in recent sessions, a short-covering bounce cannot be ruled out, particularly if global cues improve and heavyweight stocks participate in the recovery.

However, traders should avoid interpreting such a bounce as a sustained trend reversal without confirmation from price action. The near-term outlook remains cautious, with 22,400 acting as a key support level and 23,000 being the level to watch for a meaningful improvement in sentiment. Key Resistance: 22,900, 23,000 Key Support: 22,500, 22,400 Strategy: Buy Nifty futures on dips near 22,600, subject to support holding and confirmation of a reversal, with a stop-loss below 22,400 and targets of 22,900 and 23,000.

Jigar S Patel, Senior Manager - Equity Research at Anand Rathi The recovery on Monday indicates buying interest at lower levels. In line with our previous view, the hourly Relative Strength Index (RSI) remains an important indicator of underlying momentum. During the recent rally, the hourly RSI crossed 70 for the first time since August 2026. Despite a subsequent correction of approximately 700 points, the RSI held above 40, indicating resilience in bullish momentum.

During Monday's session, the hourly RSI improved to 55, supporting the possibility of a further recovery. We expect the Nifty to move towards 23,000, provided the daily RSI crosses the crucial 50 mark from its current level of 46. On the downside, 22,400 and 22,200 remain key support levels, while 22,800–23,175 constitutes the immediate resistance zone. Key Resistance: 22,800, 23,175 Key Support: 22,400, 22,200

Strategy: Buy Nifty futures on dips, with a stop-loss at 22,400 and a target of 23,200. Somil Mehta, Head of Retail Research at Mirae Asset ShareKhan The Nifty witnessed a sharp sell-off in the previous week after encountering resistance at the 40-day DEMA. During Monday's trading session, the index attempted to rebound. However, it remains on weak footing, as it is trading below the 40-day DEMA. On the upside, the immediate resistance zone lies at 22,800–22,850.

A pullback towards this zone could attract selling pressure in the short term. The 40-day DEMA, currently at 23,098, will be a significant resistance level in the near term. The short-term trend will remain bearish as long as the Nifty trades below this moving average. On the downside, the 22,300–22,180 zone will be important to watch in the coming trading session. Significant weakness is likely if the Nifty closes decisively below this support zone.

Key Resistance: 22,800, 23,098 Key Support: 22,300, 22,180 Strategy: Sell Nifty futures at the current market price (CMP) or on a rise towards 22,800, with a stop-loss at 23,098 on a closing basis and targets of 22,300 and 22,180. Bank Nifty - Outlook and Positioning Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities The marginal recovery indicates that buying interest has emerged at lower levels, although the banking index continues to face pressure following the weakness witnessed in previous sessions.

The performance of heavyweight private sector banks will remain crucial in determining whether the index can sustain its recovery. Investors will also track quarterly earnings, management commentary on credit growth and asset quality, and the implications of elevated crude oil prices for inflation and interest-rate expectations. On the technical front, the 54,000–53,800 zone is the immediate support area.

A decisive break below this range could weaken sentiment further and open the possibility of a decline towards 53,500 and 53,000. On the upside, 54,800–55,000 represents an important resistance zone. A sustained move above 55,000 would improve the near-term outlook and could trigger further short covering towards 55,500. However, failure to reclaim this zone may result in renewed selling pressure at higher levels.

Although the banking index showed some resilience relative to the broader market during Monday's session, the recovery needs confirmation through sustained buying in major banking constituents. Traders should therefore remain selective and avoid aggressive directional positions until the index establishes a clearer trend. The near-term bias remains cautious, with 53,800 acting as a crucial support level and 55,000 as the immediate resistance to monitor.

Key Resistance: 54,800, 55,000 Key Support: 54,000, 53,500 Strategy: Buy Bank Nifty futures on dips near 54,000, with a stop-loss below 53,500 and targets of 55,500 and 56,000. Jigar S Patel, Senior Manager - Equity Research at Anand Rathi The Bank Nifty approached the crucial demand zone of 54,000–53,800, from which a strong rally had emerged in June 2026. During Monday's session, the index touched an intraday low of 53,777 before recovering approximately 615 points, highlighting buying interest at lower levels.

On the hourly chart, an extended bottom formation, accompanied by bullish divergence in the Relative Strength Index (RSI), indicates that selling pressure may be weakening. Going forward, the 54,000–53,800 zone will remain critical for sustaining the recovery and maintaining a positive near-term outlook. On the upside, a sustained move above 55,000 could pave the way for further gains towards 56,000.

Key Resistance: 55,000, 55,500 Key Support: 54,000, 53,800 Strategy: Buy Bank Nifty futures on dips, with a stop-loss at 53,800 and a target of 55,500. Somil Mehta, Head of Retail Research at Mirae Asset ShareKhan The Bank Nifty has witnessed continued selling pressure over the past few trading sessions after encountering resistance at the 40-day DEMA. On the upside, the immediate resistance zone lies at 54,400–54,450.

A bounce towards this zone could provide a selling opportunity. The short-term trend remains bearish, and sellers are likely to remain in control as long as the Bank Nifty trades below 55,180, which represents the 61.8 percent retracement level of the recent decline from the high of 56,065. On the downside, 53,800 will act as the immediate support level. A break below this level could drag the index lower towards 53,000–52,785.

Key Resistance: 54,450, 55,180 Key Support: 53,800, 52,785 Strategy: Sell Bank Nifty futures at the CMP or on a rise towards 54,450, with a stop-loss at 55,180 on a closing basis and targets of 53,000 and 52,785.