The NSE Nifty 50 is expected to open neutral to green on Monday, Oct. 19, as the weekly chart formed a strong bullish-bodied candlestick after the index found support near the 200-week extended moving average around 22,390, as per Hitesh Tailor, research analyst, Choice Broking.
Indian equity benchmarks, Sensex and Nifty 50, extended gains to a second consecutive session on Friday, led by IT, Metal and Auto stocks, on Friday, Oct. 16.
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The BSE Sensex ended at 74,729.27 levels, up 413.66 points or 0.56%. On the other hand, NSE Nifty 50 closed at 23,146.15 levels, up 0.65% or 148.80 points.
On the upside Tailor identified immediate resistance placed at 23,400 and 23,800.
"A decisive breakout above this zone could extend the recovery and improve the broader technical outlook. On the downside, support is seen at 22,700 and 22,500. Holding this region would help sustain the recovery, whereas a breakdown below it could revive selling pressure," the analyst said.
He advised traders to adopt a selective approach while monitoring the index's ability to sustain above the recent breakout levels.
GIFT Nifty Futures were trading at a downturn of 0.04% to 23,085.
The analyst stated that support levels for the index are at 22,500 - 22,700.
Analyst Sudeep Shah, head of technical and derivatives research at SBI Securities, identified the 22,800–22,750 zone as a crucial support for the Nifty 50.
"As long as Nifty sustains above 22,750, the recovery is likely to extend," Shah said.
On the upside, 23,400–23,450 remains the immediate resistance zone, a decisive breakout above which could propel the index towards 23,650, coinciding with its 100-day extended moving average, the analyst said.
Bank Nifty
The Bank Nifty is expected to maintain a sideways to bullish bias as long as it sustains above the immediate support zone, according to Hitesh Tailor.
"A decisive move above 56,350–56,700, particularly a sustained reclaim of the 50-week extended moving average, could strengthen the recovery and improve the broader technical setup," the analyst said.
"On the downside, holding the 54,850–55,200 zone would be important to preserve the recent positive momentum," Tailor added.
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The 56,000-56,100 zone, coinciding with the 50-day extended moving average, is expected to act as a key resistance area as per Sudeep Shah.
"A sustained move above 56,100 could trigger a fresh upward rally towards 56,600, followed by 57,300 in the short term," Shah said.
"On the downside, the 55,300-55,200 zone is likely to provide strong support," he added.
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