Trading Plan: Can Nifty 50 extend losses for a third day, Bank Nifty defend 54,000 amid consolidation?

Meanwhile, the Bank Nifty needs to reclaim 54,500 to strengthen its recovery prospects, with a potential upmove towards 54,700–55,000 if it sustains above this level. On the downside, support is placed in the 53,700–53,600 zone. On October 28, the Nifty 50 fell 51 points, or 0.22 percent, to 22,699, while the Bank Nifty rallied 292 points, or 0.54 percent, to 54,267. Market breadth on the NSE favoured advances, with 1,741 shares rising compared with 1,516 declining shares.

Nifty Outlook and Strategy Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities The benchmark Nifty 50 has been consolidating within a narrow range of 457 points over the past five trading sessions, largely forming indecisive candlestick patterns that reflect a lack of directional conviction. In contrast, the broader market has shown relative strength, with the Nifty Midcap 100 and Nifty Smallcap 100 staging healthy rebounds from their recent lows.

From a technical standpoint, the Nifty 50 continues to trade below its key short-term moving averages, indicating that the near-term trend remains under pressure. However, momentum indicators and oscillators suggest a phase of consolidation rather than a sharp directional move. Notably, the daily RSI has been moving sideways for the past 11 trading sessions, highlighting the absence of strong momentum in either direction.

Going ahead, the 20-day EMA zone of 22,800–22,850 is likely to act as a crucial resistance area for the index. On the downside, the 22,400–22,350 region remains an important support zone. A decisive breakout above resistance or a breakdown below support could trigger the next meaningful directional move in the index. Key Resistance: 22,800, 22,850 Key Support: 22,400, 22,350 Strategy: Buy Nifty November futures above 22,870, with a stop-loss at 22,720 and a target of 23,050.

Vatsal Bhuva, Technical Analyst at LKP Securities The Nifty 50 remains range-bound on the daily chart, consolidating within the broader 22,400–22,800 range. Key support is placed at 22,500, where strong buying interest has repeatedly emerged, while 22,800 continues to act as a formidable resistance after the index failed to sustain above 22,700 during market hours. A decisive breakout above resistance or breakdown below support could trigger the next directional move.

With crude oil prices elevated, US 10-year Treasury yields above 5 percent and the India VIX above 16, traders should remain cautious and strictly align their strategies with the prevailing broader trend. Key Resistance: 22,800, 23,000 Strategy: Buy the Nifty 22,600 Put option expiring on November 3 above Rs 150, with a stop-loss at Rs 120 and a target of Rs 200. Vaishali Patel, Deputy Manager - Research-Technical Department at Jainam

Technically, the Nifty 50 has formed a strong bullish candle on the daily chart, with a long lower shadow indicating buying support at lower levels. However, the index continues to trade below its key moving averages, suggesting that the broader technical structure remains weak. The RSI, at around 46, reflects neutral-to-weak momentum. Despite the recent decline, the index has held above the 40 level, suggesting some improvement in momentum.

Buying interest has emerged at lower levels, but persistent pressure from elevated crude oil prices could limit the upside. Immediate support is placed in the 22,500–22,450 zone, followed by 22,300–22,180. A decisive break below 22,450 could intensify selling pressure and expose the index to further downside. On the upside, 22,800–22,850 remains the immediate resistance zone, followed by 23,000–23,200.

A sustained move above 22,850 would be required to strengthen the recovery and improve short-term sentiment. Key Resistance: 22,800, 23,000 Key Support: 22,600, 22,500 Strategy: Buy Nifty November futures above 22,880–22,920, with a stop-loss at 22,550 and a target of 23,150. Bank Nifty - Outlook and Positioning Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities The Bank Nifty has underperformed the frontline indices over the past few trading sessions.

However, after finding support in the 53,800–53,600 zone, the index has staged a rebound, indicating emerging buying interest at lower levels. From a technical perspective, the index continues to trade below its key short-term moving averages, suggesting that the broader trend remains weak. Moreover, momentum indicators and oscillators continue to exhibit a negative bias, reflecting a cautious near-term outlook.

Going ahead, the 53,800–53,600 zone is expected to act as a crucial support area. A sustained move below 53,600 could trigger further downside towards 53,000, followed by 52,400 in the short term. On the upside, the 20-day EMA zone of 54,900–55,000 is likely to act as a key hurdle. A decisive move above this zone would be required to improve the near-term outlook and pave the way for a stronger recovery.

Key Resistance: 54,900, 55,000 Key Support: 53,800, 53,600, 53,000 Strategy: Buy Bank Nifty futures above 54,700, with a stop-loss at 54,300 and a target of 55,700. Vatsal Bhuva, Technical Analyst at LKP Securities The Bank Nifty formed a bullish candlestick on the daily chart after finding support near the crucial 53,800 level, where buying interest emerged. However, despite this recovery, the broader chart structure remains weak, suggesting that the index may continue to face selling pressure at higher levels.

Hence, a sell-on-rise approach should be maintained until the index decisively reclaims the 55,500 mark. The 20-day moving average is likely to act as dynamic resistance. On the downside, the 53,800–53,700 zone remains a crucial support area. Key Resistance: 54,500 Strategy: Buy the Bank Nifty 53,900 Put option at Rs 650, with a stop-loss at Rs 540 and a target of Rs 820. Vaishali Patel, Deputy Manager - Research-Technical Department at Jainam

The recent rebound indicates buying interest at lower levels, although the broader technical structure remains weak. The index continues to trade below its key moving averages, while the previous session's decline highlights persistent selling pressure at higher levels. Immediate support is placed in the 53,600–53,000 zone. A decisive break below 53,600 could revive selling pressure and weaken the recovery.

On the upside, 54,450–54,500 is the immediate resistance zone, followed by 54,900–55,100. A sustained breakout above 55,100 would be required to strengthen the recovery. Overall, the Bank Nifty remains on a cautious-to-bearish footing despite the latest rebound. Sustaining above 54,000 could support further consolidation, while a decisive move above 54,500 would improve the near-term outlook. Conversely, a breakdown below 53,600 could expose the index to renewed downside pressure.

Key Resistance: 54,500, 55,000 Key Support: 53,600, 53,500 Strategy: Buy Bank Nifty futures around 54,800–54,900, with a stop-loss at 54,280 and a target of 55,300.