Nifty 50 and Sensex, are poised for a muted opening today, as indicated by the flat trading of Gift Nifty at 25,240, a slight premium over the Nifty futures’ previous close.
Despite a potential flat start, the market continues to exhibit resilience, buoyed by strong technical patterns and favorable open interest (OI) data.
Also Read: Forex Update: Volatility Continues Across Major Currency Pairs
Nifty 50 and Sensex Performance
On Monday, both indices rallied, with the Sensex surging by 591.69 points to close at 81,973.05, and the Nifty 50 adding 163.70 points, finishing at 25,127.95.
Nifty 50’s performance was marked by a long bull candle on the daily chart, hinting at a potential upside breakout from its recent consolidation range.
Senior analysts are optimistic about Nifty’s movement, noting its current position near the upper range of 25,200 levels.
Nagaraj Shetti from HDFC Securities emphasized the significance of a sustainable move above this level, which could drive the index toward the next resistance zones of 25,500 to 25,600.
Key Technical Insights for Nifty 50
Rupak De, Senior Technical Analyst at LKP Securities, highlighted that Nifty’s bounce back after a brief consolidation has raised optimism.
With the index reclaiming its 50-EMA on the daily chart, the outlook remains positive. On the higher end, the index could climb toward 25,350–25,400, with support near 24,900 acting as a safety net for traders.
Momentum indicators like the RSI have been showing a bullish trend. VLA Ambala of Stock Market Today remarked that the RSI levels on different timeframes suggest sustained upward momentum.
Ambala predicts key support levels near 25,080 and 25,000, with resistance expected around 25,210 and 25,300, providing traders with clear reference points for the day.
Open Interest Data: Indications for October 15
The OI data further bolsters the bullish sentiment. For the Nifty 50, significant put writing has been observed around the 25,000 and 25,100 strikes, pointing to solid support at these levels.
Call option unwinding has pushed resistance toward 25,500 and 25,200, indicating a battle between bulls and bears at these critical levels. A breakout above 25,250 could trigger a rally toward these higher resistance zones.
Bank Nifty Outperforms, Eyes 52,500
Bank Nifty continues to outperform, ending Monday 644.60 points higher at 51,816.90. The index formed a bullish candle on the daily chart, breaking out of a three-day consolidation phase.
Chandan Taparia from MOFSL noted that Bank Nifty could advance to 52,500 in the short term, provided it sustains above 51,500. On the downside, support is seen at 51,000, making “buy on dips” a viable strategy for traders.
The OI data for Bank Nifty also shows strong put writing at the 51,000 and 51,500 levels, indicating a solid base. Conversely, the call option base has shifted higher, suggesting potential resistance at 52,000 and 52,500.
Global Cues and Their Impact
Global markets are offering mixed signals as China’s disinflationary pressures and weak economic data spark concerns about global growth.
Asian markets gained ground, with China’s stimulus expectations pushing stocks higher. In the U.S., major indices closed in the green, supported by a rally in technology stocks, particularly Nvidia, and positive earnings reports from major financial institutions.
While these global factors are weighing on sentiment, the Indian market remains resilient, especially with declining crude oil prices providing a breather amid ongoing geopolitical tensions and FII outflows.
Stocks to Watch Today
With the market setup indicating a cautious yet optimistic start, stock-specific action could dominate today’s trading. Analysts have recommended stocks like Torrent Power, NMDC, and REC Ltd based on strong technical patterns and favourable support levels.
As the market opens today, all eyes will be on whether Nifty can break through the key 25,250 resistance level and if Bank Nifty can sustain its upward march toward 52,500.
Traders will also keep a close watch on global cues and heavyweights like Reliance and HCL Technologies, which could influence early trade sentiment.
