After an unusual two-day losing run, the Nifty index recovered its upward momentum on Monday ahead of Tuesday’s monthly expiry. The Nifty closed at 25,966.75 on Monday, up 178.45 points.
The Nifty Bank index staged a strong recovery from its key support levels, maintaining its positive momentum ahead of the monthly expiry. The Nifty Bank closed at 58,114.25 on Monday, up 414.65 points. The India VIX increased by 2.31% on Monday, indicating a calm and optimistic market outlook despite a modest uptick. Despite persistent global uncertainty, market players seem to be properly positioned and practicing rigorous risk management.
Nifty Outlook Today
“Nifty continues to showcase a resilient bullish setup, with every dip being swiftly absorbed-a hallmark of a healthy uptrend. Although the index appears slightly stretched in the short term, this consolidation phase provides opportunities for accumulation in alignment with the prevailing higher high-higher low pattern. Persistent put writing at lower strikes further reflects traders’ confidence in the ongoing rally,” commented Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.
“A sustained move above the 26,100 mark could trigger fresh long positions and short-covering, propelling the index toward 26,300 in the near term. On the downside, strong demand is expected around 25,600-25,700, which should cushion any short-term corrections. As long as Nifty holds above this crucial support band, the broader trend remains decisively bullish. Traders are advised to maintain a “Buy-on-Dips” approach, with a close above 26,000 likely to unleash the next leg of the uptrend,” he further added.
Bank Nifty Outlook Today
“The Nifty Bank index continues to reflect a strong bullish setup, with heavyweights in the banking space leading the charge. Every minor decline is being swiftly absorbed, a characteristic of a healthy and sustainable uptrend. Although the index may appear slightly extended in the short term, the prevailing higher high-higher low structure provides ample room for continued accumulation. Persistent put writing at lower levels further highlights traders’ confidence in the ongoing rally,” said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.
According to him, a sustained move above the 58,500 mark could trigger renewed buying interest and short-covering activity, propelling the index toward the 59,000 zone in the near term. On the downside, strong demand is expected around the 57,500-57,700 region, which should cushion any short-lived pullbacks.
“As long as the index trades above this vital support band, the broader trend remains decisively bullish. Traders are advised to maintain a “Buy-on-Dips” approach, with a decisive close above 58,500 likely to open the gates for the next leg of the uptrend,” Dhupesh Dhameja further added.
Stocks To Buy Today
Technical analyst Riyank Arora of Mehta Equities Ltd. suggested purchasing two stocks on Tuesday, October 28.
MCX
Buy | CMP: Rs 9,305 | SL: Rs 9,000 | Target: Rs 9,800 / Rs 10,200
MCX is witnessing a fresh breakout on the daily chart, supported by strong buying interest and a surge in trading volumes. The stock’s trend remains firmly positive, aided by bullish RSI and MACD crossovers. Sustaining above ₹9,305 could fuel further upside toward ₹9,800 and ₹10,200. Traders can accumulate on dips with a stop-loss at ₹9,000 for risk management.
Jayaswal Neco
Buy | CMP: Rs 79 | SL: Rs 74 | Target: Rs 88 / Rs 95
Jayaswal Neco has maintained upward momentum with consistent volume build-up and positive price action. The stock is trending above short-term moving averages, indicating continued accumulation at lower levels. A sustained move above ₹79 can trigger further upside toward ₹88 and ₹95. Traders may consider fresh buying while keeping a stop-loss at ₹74 to manage downside risk.