NIFTY TECHNICAL OUTLOOK
Based on Market Closing on Tuesday, October 22, 2024

In the last trading session, the Nifty ended at 24,472.10, marking a significant drop of 309 points (-1.25%). The negative bias may persist if the index continues to trade below the short-term support level of 24,450.

The session began positively, with Nifty opening at 24,798.70 and reaching an intraday high of 24,882.00 in the morning. However, it saw sharp declines later, hitting an intraday low of 24,445.80 before closing at 24,472.10. All sectors closed in the red, with PSU banks, realty, metals, and media leading the losses. Market breadth was notably weak, with only 205 stocks advancing while 2,459 declined, and 83 remained unchanged. ICICI Bank was the sole gainer, while top losers included Adani Enterprises, Bharat Electronics (BEL), Mahindra & Mahindra (M&M), and Coal India.

From a technical standpoint, momentum indicators continue to reflect a negative trend as the Nifty remains below its short- and medium-term moving averages. The index formed a bearish "black candle" on the daily chart, closing near the session's low, which suggests the downtrend could extend. Key short-term support stands at 24,450, with intraday resistance at 24,500. If the index fails to hold above 24,450, the next support level is at 24,000. On the other hand, the momentum indicators are signaling that the index is nearing oversold levels, with the Relative Strength Index (RSI) closing at 33.60 on the daily chart. Historically, Nifty has rebounded from bearish trends when RSI approached the 33-35 range. For the index to regain a positive outlook, it would need to break above the 24,570 level.

Intraday Levels  Support: 24,400, 24,300, 24,200 Resistance: 24,500, 24,570-24,700 (15-Minute Charts)

Positional Trading Levels Short-term Support: 24,450-24,000 Resistance: 25,200-25,800

BANK NIFTY TECHNICAL OUTLOOK

In the previous trading session, Bank Nifty closed at 51,257.15, recording a significant loss of 705.55 points. From a technical perspective, momentum indicators continue to suggest a bearish trend, with the index remaining below its short-term moving averages. The formation of a black candle on the daily chart and a close near the session's low further reinforces a negative bias.

On the downside, the index has immediate intraday support at the 51,130 level, while resistance is observed at 51,400. Bank Nifty's technical indicators and chart patterns suggest that the index is currently in a bearish phase. With momentum weakening and the index staying below key moving averages, caution is advised for traders. A break below the 51,130 support level could signal further downside potential, while a move above 51,400 is needed to regain positive momentum. Positional traders should monitor critical support and resistance levels to gauge the trend direction and adjust their strategies accordingly.

Intraday support levels, based on the 15-minute charts, are identified at 51,130, 50,850, and 50,600, while resistance is positioned at 51,400, 51,675, and 51,900.

 For positional traders, key short-term support is located between 50,500 and 49,650, with resistance levels at 52,000 and 53,350.