Trade Setup For Oct. 23: Nifty Finds Key Support At 25,700 Levels

The Nifty continued to remain in an uptrend even during the Muhurat trading session, though the actual range remained small due to the shortened trading window, noted Rupak De, senior technical analyst at LKP Securities.

"Sentiment continues to favor the bulls, with the index sustaining above the critical 21 EMA," De said.

The RSI has entered a highly ambitious momentum zone and looks ready to strengthen in the coming sessions. "In the short term, a rally towards 26,000/26,200 looks possible, while support is placed at 25,700," sees De.

"The Nifty continues to exhibit a strong bullish setup, with every dip being swiftly bought into — a hallmark of a healthy uptrend," said Dhupesh Dhameja, derivatives research analyst, SAMCO Securities.

A sustained move above the 26,000 mark could ignite fresh buying momentum and trigger short-covering, potentially driving the index towards 26,300 in the near term, the analyst believes. On the downside, immediate support is placed around 25,600–25,700, where strong demand is expected to limit any short-term corrections.

As long as the Nifty trades above this critical support band, the broader trend remains decisively bullish. Traders are advised to maintain a “Buy-on-Dips” strategy, with a decisive close above 26,000 likely to unleash the next leg of the uptrend, as per SAMCO Securities.

The Nifty Bank index extended its rally to a new all-time high, reaffirming a decisive breakout backed by solid follow-through momentum.

"A sustained move above the 58,200 resistance band could ignite fresh long positions and trigger short covering, potentially propelling the index toward the 58,500 mark in the near term," he added. On the downside, immediate support lies between 57,500–57,600, where strong buying interest is likely to limit any short-term pullbacks.

As long as the index remains above the 57,500 zone, the broader trend stays decisively bullish. A “Buy-on-Dips” strategy remains the preferred approach, with a close above 58,100–58,200 expected to unfold the next leg of the uptrend, the brokerage added.

The Indian markets witnessed a highly volatile one-hour trading session on Tuesday to mark the start of Samvat 2082. The NSE Nifty 50 and BSE Sensex ended flat after it pared most gains from the beginning of the special session. The Nifty 50 ended 0.10% higher at 25,868.60, and the Sensex ended 0.07% higher at 84,426.

The rupee rose 9 paise to close at 87.93 against the US dollar on Monday, supported by foreign fund inflows and lower crude oil prices.