Trading Plan: Can Nifty 50 march towards 23,300, Bank Nifty surpass the 56,100 hurdle?
The Nifty 50 may advance towards its immediate target zone of 23,300–23,350. However, the sustainability of the uptrend remains a key factor to watch, as the broader technical structure is still weak and crude oil prices remain elevated.
With momentum indicators showing further improvement and the Nifty 50 trading decisively above its short-term moving averages, the index may advance towards its immediate target zone of 23,300–23,350. However, the sustainability of the uptrend remains a key factor to watch, as the broader technical structure is still weak and crude oil prices remain elevated. On the downside, immediate support is placed in the 22,900–23,000 range.
Meanwhile, the Bank Nifty needs to decisively clear the 56,100 hurdle to extend its upmove towards 56,500. Until then, the index may continue to consolidate, with immediate support at 55,500, followed by 55,300. A breach of the 55,300 level could prompt market participants to turn cautious, experts said. On October 16, the Nifty 50 rallied 149 points, or 0.65 percent, to close at 23,146, while the Bank Nifty gained 34 points, or 0.06 percent, to end at 55,844.
Market breadth on the NSE remained positive, with 1,894 shares advancing against 1,345 declining. Nifty Outlook and Strategy Jatin Gedia, Technical Research Analyst, VP, Derivatives & Technical Research at Teji Mandi The Nifty formed a strong bullish candle on the weekly chart, breaking above and closing beyond the previous two-week high of 23,080. It has also formed a candlestick pattern resembling a Morning Star, a three-candle reversal pattern.
The index respected the 50-month exponential moving average (EMA) at 22,096, which has been breached on only two previous occasions—in 2008 and 2020. This is significant because subsequent dips towards this average have attracted buying interest. The latest dip towards this level has also been bought into, suggesting a possible resumption of the primary uptrend. The rise from 22,179 has been impulsive, suggesting, according to Elliott Wave principles, that a bottom may be in place.
From a price-pattern perspective, the index has broken out of an inverse head-and-shoulders pattern, which is generally considered a trend-reversal formation. On the upside, the immediate hurdle lies in the 23,477–23,500 zone, which coincides with the 50% Fibonacci retracement level of the entire decline from 24,774 to 22,179. Immediate support is placed in the 22,800–22,850 range, based on the principle of role reversal.
Key Resistance: 23,400, 23,500 Key Support: 22,930, 22,855 Strategy: Buy Nifty October futures around 23,119, with a stop-loss at 23,030 and a target of 23,400. Hitesh Rathi, Technical Analyst (Equity & Derivatives) at Angel One A well-defined trading range has emerged on the weekly chart, with the upside capped near the 24,000 mark. This level closely aligns with the 20-week exponential moving average (WEMA) and continues to act as a formidable resistance zone.
On the downside, the index remains well supported in the 23,100–23,200 band. The short-term technical setup suggests that a move above 23,550 could trigger fresh upward momentum. Conversely, a breakdown below the 23,100–23,200 support zone is likely to shift the balance in favour of the bears, potentially triggering further selling pressure and opening the door to a decline towards 22,700. However, repeated defence of the lower support band clearly indicates strong demand at lower levels, tilting the balance marginally in favour of the bulls.
Key Resistance: 23,250, 23,450 Key Support: 23,050, 22,900 Strategy: Buy Nifty futures near 23,000, with a stop-loss at 22,900 and a profit-booking target in the 23,200–23,250 range. Vaishnavi Jagtap, Senior Research Analyst – Technical at Axis Direct The Nifty ended the week with gains of more than 600 points, forming a strong bullish candle. The index found support in the 22,100–22,200 zone over the past three weeks.
The RSI on both the daily and weekly time frames is moving higher, indicating strengthening bullish momentum. The index finally gathered momentum to move above its 20-day SMA for the first time since August 2026. Technically, immediate support is placed in the 22,900–23,000 range. A decisive breakdown below this zone could push the index lower towards 22,700–22,800. On the upside, immediate resistance is positioned at 23,300.
A sustained breakout above this level could propel the index towards 23,500 and 23,600. Both price action and the RSI indicate strengthening bullish momentum, which could take the index towards 23,300 and subsequently 23,500. Key Resistance: 23,200, 23,500 Key Support: 23,000, 22,800 Strategy: Buy Nifty futures on declines towards 23,000, with a stop-loss at 22,850 and a target range of 23,300–23,400.
Bank Nifty - Outlook and Positioning Hitesh Rathi, Technical Analyst (Equity & Derivatives) at Angel One A second consecutive week of gains marks a positive development for the high-beta Bank Nifty index, reflecting an improvement in the underlying market structure. Private sector banks led the positive momentum throughout the week, contributing to the improvement in overall market sentiment. From a technical perspective, the index has reclaimed its 20-day exponential moving average (DEMA) and is now trading marginally below the bearish gap on the daily chart.
On the upside, the gap around 56,200 is likely to act as an intermediate hurdle. A decisive breakout above this zone could pave the way for a move towards the 56,600 subzone, where notable rejections have been observed in recent trading sessions. On the downside, the improving trend structure is expected to provide support during declines towards the 55,000–55,200 zone. However, the crucial support remains firmly placed in the 54,450–54,500 range, which is essential for sustaining the positive outlook.
Key Resistance: 56,200, 56,600 Key Support: 55,200, 54,500 Strategy: Buy Bank Nifty futures near 55,600, with a stop-loss at 55,250 and a profit-booking target near 56,000. Jatin Gedia, Technical Research Analyst, VP, Derivatives & Technical Research at Teji Mandi Bank Nifty continues to outperform the broader market. The index formed a panic low in September, whereas the Nifty formed its panic low in October, indicating an intermarket divergence.
In fact, Bank Nifty has not breached its May 2026 low of 52,783, highlighting its relative outperformance over the past three months. Last week, Bank Nifty closed above the previous two-week high of 55,390. On the daily chart, it formed an inside-bar pattern, indicating consolidation. This makes the extremes of the mother bar—56,065 on the upside and 55,280 on the downside—crucial levels to watch.
The expectation is that Bank Nifty will break out of this one-day consolidation pattern on the upside and extend its existing uptrend towards 56,500–56,700. This zone coincides with resistance from the 200-day EMA. Key Resistance: 56,500, 56,600 Key Support: 55,280, 54,900 Strategy: Buy Bank Nifty October futures above 56,186, with a stop-loss at 55,800 and a target of 56,645. Vaishnavi Jagtap, Senior Research Analyst – Technical at Axis Direct
Bank Nifty has been forming a higher-high, higher-low pattern over the past two weeks. During the previous week, the index gained more than 580 points. On the daily chart, the index has moved above its 20-day SMA and appears poised to advance towards its 50-day SMA, currently positioned around 56,500. The weekly RSI is moving higher towards its reference line, indicating improving bullish momentum in the banking index.
Technically, immediate resistance is placed in the 56,100–56,200 range. A breakout above this zone could propel the index towards 56,800 and eventually 57,000. On the downside, immediate support is placed around 55,500. A breach of this level could push the index lower towards the 55,000–55,300 zone. Key Resistance: 56,500, 57,000 Key Support: 55,500, 55,000 Strategy: Buy Bank Nifty futures above 56,200, with a stop-loss at 55,800 and a target range of 56,500–56,800.
