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.
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.