Given the lack of bullish strength amid an elevated India VIX, a weak broader technical structure, oil prices sustaining above $110 a barrel, and caution ahead of tonight's Federal Reserve meeting outcome, the Nifty 50 is expected to extend its consolidation with a negative bias. The 22,600 level is expected to act as immediate support, followed by 22,400 as a key support zone. However, the index needs to reclaim and sustain above 22,800 to move higher towards 23,000. Meanwhile, a decisive break below the 53,800–53,700 support zone could intensify selling pressure in the Bank Nifty. On the upside, the index needs to decisively break above the 54,800–55,100 resistance zone to pave the way for further gains towards 55,800–56,100, according to market experts.
On October 27, the Nifty 50 slipped 3.5 points, or 0.02 percent, to close at 22,750, while the Bank Nifty fell 392 points, or 0.72 percent, to 53,975. Despite the weakness in the benchmark indices, market breadth remained positive on the NSE, with 2,305 shares advancing against 950 declining shares.
Rajesh Dashrath Bhosale, Fund Manager - Advisory at Renaissance
On the daily chart, the Nifty 50 failed to build on Monday's strong bullish candle. The 22,800 level, which has capped the index over the past four sessions and coincides with the 20-day EMA, remains the immediate hurdle. A sustained move above this level could trigger a range breakout, paving the way for a rally towards 23,000 and the recent high of 23,180, which aligns with the 50-day EMA.
A broader uptrend would be confirmed only above 23,180, as a breakout above this high would signal a structural bottom. Until then, traders should remain selective, given the several geopolitical triggers lined up ahead.