Trade Setup For Oct 28: Nifty On Firm Footing Ahead Of Expiry; Support At 25,700
The daily chart indicates that Nifty has formed a robust and well-established bullish structure, according to analysts.
The NSE Nifty 50 has regained its upward momentum ahead of the monthly expiry on Tuesday with its key support at 25,700, according to analysts.
This comes after the index reversed its two-day losing streak, according to analysts of SAMCO Securities. "The index has successfully completed a healthy retest of its breakout neckline and is now exhibiting renewed signs of steady bullish continuation."
The daily chart indicates that Nifty has formed a series of higher high and higher lows, reaffirming a robust and well-established bullish structure, the analysts added.
"With current month expiry later this week, investors are also covering their positions, which is also keeping markets in good stead,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
The Bank Nifty recouped its entire previous session decline after it formed a higher high and higher low highlighting rebound, said Bajaj Broking Research. If the index sustains over last high of 58,577 the rally will extend towards 59,000 and 59,300 levels.
"Index has immediate supports placed at 57,300-57500 levels being the last week breakout area and a stronger demand zone is seen near 56,800-56,500 levels," said Bajaj Broking.
The index successfully completed a constructive retest of its breakout neckline and is now displaying renewed signs of continued upward momentum, said analysts of SAMCO Securities.
Market Recap
The Nifty ended in the green on Monday. At the close, the Sensex rose 566.96 points, or 0.67%, to 84,778.84, while the Nifty rose 170.9 points, or 0.66%, to 25,966.05. During the day, Sensex rose 0.85% to 84,932.08 and Nifty briefly touched the 26,000 mark.
"Investor sentiment remained upbeat, supported by signs of improving economic momentum, festive-season consumption, and steady government spending," said Ponmudi R, CEO of Enrich Money, a SEBI - registered online trading and wealth tech firm.
Currency Update
The rupee depreciated 12 paise to 87.95 against the US dollar in early trade on Monday, weighed down by rising crude oil prices supported by optimism over a potential US-China deal.
