Nifty Ends October Series with Strong Gains
The Nifty 50 index wrapped up the October derivatives series with firm gains of nearly 5% on an expiry-to-expiry basis, sustaining its dominant bullish tone. Despite being range-bound over the last few sessions, the index continues to show impressive resilience and steady accumulation at lower levels.
Holding comfortably above earlier resistance zones, Nifty has consistently respected prior swing lows while forming higher highs and higher lows, reaffirming a robust and well-defined uptrend.
On Tuesday, Nifty closed 29.85 points lower at 25,936.20, forming a narrow consolidation candle above its breakout neckline — a healthy time-wise correction amid persistent buying interest.
Technical View: Bullish Bias Intact
From a technical standpoint, Nifty has built a solid base near 25,700, and continues to trade above both the 10-day and 20-day exponential moving averages (DEMA) — underlining sustained bullish sentiment.
Every minor dip continues to be bought into, signaling institutional accumulation and confidence among positional traders.
- Support Zone: 25,750–25,650 (Breakout neckline and prior swing lows)
- Resistance Zone: 26,000–26,100 (Recent swing highs)
- Key Medium-Term Support: 25,600
As long as Nifty sustains above 25,600, the medium-term trend remains decisively positive. The ongoing pattern of higher highs and higher lows reinforces the continuation of the uptrend.
Momentum Indicators: Strong Yet Controlled
Momentum oscillators remain supportive of the prevailing bullish structure:
- RSI (14): Above 70 — reflects strong momentum with no immediate signs of exhaustion.
- MACD: Remains above the signal line, confirming sustained buying strength.
Hence, 25,700–25,600 serves as a key support cluster, while 26,000–26,100 remains the immediate hurdle to watch.
Derivatives Snapshot: Cautious Optimism for November Series
The derivatives data suggest a range-bound but positive sentiment as the market heads into the November F&O series.
- Call OI (26,000 strike): 69.37 lakh contracts – key resistance zone.
- Put OI (25,900 strike): 50.89 lakh contracts – strong support area.
- PCR (Put-Call Ratio): Slipped to 0.78 from 1.02, indicating short-term caution but no trend reversal.
This balanced positioning implies that Nifty may continue to oscillate within a defined range before a decisive breakout.
Volatility Check
The India VIX rose 0.80%, yet remains near its lower band, signaling a calm and confident market environment. Despite global headwinds, traders continue to demonstrate disciplined risk management and measured optimism.
Low volatility suggests steady institutional participation and a healthy consolidation phase rather than panic or reversal.
Market Outlook: Buy-on-Dips Still the Strategy
The October series ended on a strong footing, with most sessions closing in the green and every intraday dip being swiftly absorbed — a signature of a healthy bull market.
While short-term charts indicate mild overextension, this sideways consolidation provides fresh entry opportunities for long-term investors. Persistent put writing at lower strikes further underscores confidence in the rally.
- A breakout above 26,100 could trigger fresh long build-ups and short-covering, propelling Nifty toward 26,300 in the near term.
- On the downside, 25,600–25,700 should act as a strong cushion against any short-term pullbacks.
As long as Nifty trades above this support band, the broader trend remains firmly bullish. Traders are advised to maintain a buy-on-dips approach, as a close above 26,000 may unleash the next leg of the uptrend.
Key Takeaways
✅ Nifty gained ~5% in the October series, reinforcing a strong uptrend.
✅ RSI stays above 70 – momentum intact.
✅ Crucial support: 25,700–25,600; resistance: 26,000–26,100.
✅ PCR drop signals short-term caution, not weakness.
✅ Buy-on-dips strategy remains valid as long as Nifty holds above 25,600.
Easy & quick
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