Whether the rally seen in the previous session can sustain itself will be key to watch in the coming sessions. Although the broader market structure remains weak, momentum indicators have shown signs of strength. If the Nifty 50 manages to defend its immediate support at 22,600, its 10-day (EMA), it could move towards 22,800 and then 23,000, despite the possibility of some consolidation. However, a break below 22,600 could expose the index to further downside, with the 22,300–22,200 zone acting as a crucial support area. Meanwhile, the Bank Nifty needs to hold support at 55,400 and 55,100 to avoid potential selling pressure. On the upside, resistance is placed at 56,100 and 56,500, experts said.
On October 13, the Nifty 50 rallied 359 points, or 1.6 percent, to close at 22,722, while the Bank Nifty gained 563 points, or 1.03 percent, to settle at 55,481. Market breadth on the National Stock Exchange (NSE) favoured the bulls, with 1,903 stocks advancing compared with 1,364 declining.
Ashish Kyal, CMT, Founder and CEO of Waves Strategy Advisors
Buying interest returned after the recent correction, supported by strength in global markets. A key trigger for the afternoon rally was Finance Minister Nirmala Sitharaman’s comments on Long-Term Capital Gains (LTCG) tax and Securities Transaction Tax (STT), which raised hopes of a possible review. Adding to the positive momentum, the IT sector surged over 5 percent driven by strong quarterly results from HCLTech and TCS, making it one of the key contributors to the index’s recovery.
On the daily chart, the ongoing pullback is expected to continue in the form of Wave F of a Diametric pattern. After four consecutive sessions, Nifty finally closed above the prior day's high, indicating a temporary pause in the ongoing down move. Over shorter time frame prices have broken above the key POC (Point of Control) volume profile area which is a positive sign. Support as per this is near 22,620 (Futures) level which roughly comes to 22,480 spot levels.