Given signs of improving and stabilising momentum, the Nifty 50 may rebound after a day of correction and attempt to reclaim the immediate resistance level of 23,000, followed by the crucial resistance zone of 23,200. However, the upside is likely to remain capped as the index continues to trade below its medium- and long-term moving averages, while elevated crude oil prices continue to weigh on sentiment. Hence, the 22,800–22,700 zone is likely to serve as the immediate support area. Meanwhile, Bank Nifty needs to reclaim the 56,000–56,100 zone to extend its upside towards 56,400–56,500. Until then, the index may remain in consolidation, with immediate support placed at 55,300–55,000, followed by the 54,700–54,400 zone, according to experts.
On October 19, the Nifty 50 fell 257 points, or 1.11 percent, to close at 22,889, while Bank Nifty declined 356 points, or 0.64 percent, to 55,488. Market breadth remained firmly negative, with approximately 2,526 stocks declining against 733 advancing stocks on the National Stock Exchange.
Jay Thakkar, Vice President & Head of Derivatives and Quant Research at ICICI Securities
The inability to sustain the recent recovery above the 23,000 mark indicates that selling pressure persists at higher levels. Although the Nifty 50 staged a sharp rebound during the previous week, Monday’s decline highlights the risk of treating this recovery as a confirmed trend reversal. The 23,000–23,200 zone will remain an important resistance band, and the index needs to reclaim this zone decisively before a sustained recovery can be expected.
On the downside, 22,700 is the immediate support to watch, followed by 22,500 and 22,200 if selling pressure intensifies. Rising crude oil prices, uncertainty surrounding global developments, and weakness in heavyweight private banking stocks continue to pose risks to market sentiment.