Nifty saw slight profit-booking after touching the 26,000 level, but the bullish trend remains intact. Experts believe that as long as Nifty stays above 25,700, it is likely to advance towards its record highs of 26,100–26,277. Strong open interest is observed at 25,500 Put and 26,500 Call options.
Stock Market Today: On Friday, Nifty maintained its bullish stance in the stock market despite the formation of a bearish candlestick. The index crossed the 26,000 level intraday for the first time since September 30 but could not sustain it due to profit-booking. Market experts state that as long as Nifty holds the 25,700 support, there is a possibility of it reaching its record highs of 26,100 to 26,277. According to pivot points, its support is at 25,860 and resistance at 26,194, while a major resistance for Bank Nifty is observed at 58,828. Option data indicates that substantial Call Open Interest at the 26,500 strike will act as an immediate resistance.
Momentum Continues Despite Bearish Candle Formation
On October 23, Nifty crossed the 26,000 level intraday, which was the first time since September 30. However, due to profit-booking during the session, the index declined from its day's high and closed with a marginal gain. Despite this, Nifty maintained its upward momentum for the sixth consecutive trading session. Technically, even after the formation of a bearish candlestick on the chart, the market showed a buying inclination, indicating that investor confidence remains intact.
Analysts believe that currently, there is a 'buy on dips' sentiment prevalent in the market. The 25,700 level is acting as b support for Nifty. As long as this level is not breached, the possibility of a bullish trend will persist.
Key Nifty Levels Based on Pivot Points
According to technical charts, Nifty's nearest support is observed at 25,860. Subsequent support levels are at 25,803 and 25,711. Regarding resistance, major hurdles are seen at levels 26,045, 26,102, and 26,194. If Nifty succeeds in breaking above 26,100, its next target could be the record high of 26,277.
Market experts suggest that a new wave of bullish momentum could be seen in the market once Nifty consistently closes above 26,000. After surpassing this level, it is said to be 'open sky' for Nifty, meaning there is no defined upper limit for new highs above it.
Bank Nifty's Performance and Key Levels
Bank Nifty's movement is also determining the overall market direction. Currently, the index is attempting to sustain above 58,000. According to pivot points, support levels for Bank Nifty are at 57,963, 57,815, and 57,576. Resistance levels are observed at 58,441, 58,589, and 58,828.
Based on Fibonacci retracement, levels 58,735 and 60,142 will act as major resistances for Bank Nifty. Meanwhile, 57,394 and 56,661 are significant support levels. Technical experts believe that as long as Bank Nifty remains above 57,800, its bullish trend can continue.
Derivative Data Signals Bullishness
Looking at option data, the highest Call Open Interest for Nifty is observed at the 26,500 strike. Approximately 1.47 crore contracts are open at this strike, which will act as a significant resistance in upcoming trading sessions. This implies that some pressure might be seen in the market near this level, as many traders have taken sell positions at this strike.
On the other hand, for Put options, maximum Open Interest of 1.03 crore contracts is observed at the 25,500 strike. This level will act as b support for Nifty. This means that even if the market experiences a decline, buying interest is likely to emerge at this level.
