Nifty Index Continues Upward Trend with Strong Buying Interest Ahead of Muhurat Trading

The Nifty index continued its upward trend, closing higher for the fourth consecutive day before the Muhurat trading session. It rose by 133.30 points, reaching 25,843.15, supported by strong buying interest. The Nifty Bank index also maintained its positive momentum, closing at 58,033.20 with a gain of 319.85 points, marking its fourth straight positive close.

Despite global uncertainties, the India VIX saw a modest decline of 2.32% on Monday, keeping it at historically low levels. This reflects a market environment characterised by cautious optimism and strategic positioning among investors and traders. The low volatility indicates consistent engagement from market participants.

"Nifty continues to exhibit a strong bullish setup, with every dip being swiftly bought into-a hallmark of a healthy uptrend. While the index appears slightly overextended, this phase offers opportunities for accumulation in line with the prevailing higher high-higher low formation. Persistent put writing at lower strikes further signals confidence among traders in the ongoing rally. 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," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

The Nifty Bank index has extended its rally to reach a new all-time high, confirming a decisive breakout supported by strong follow-through momentum. Both public and private sector banks are significantly contributing to this uptrend. The ongoing higher high-higher low pattern indicates a robust and sustainable bullish structure.

"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. On the downside, immediate support lies between 57,500-57,600, where strong buying interest is likely to limit any short-term pullbacks," he added.

On October 23rd, Riyank Arora from Mehta Equities Ltd. suggested buying four stocks. Tanla Platforms is experiencing renewed accumulation with improving volume activity. Holding above ₹636 could lead to gains towards ₹675 and ₹700. A stop-loss at ₹610 is advised.

Hindustan Zinc is showing resilience near its support zone with rising volume participation. Sustaining above ₹486 could take it towards ₹510 and ₹525. A stop-loss at ₹470 is recommended for risk management.

Trent continues to outperform broader markets due to strong institutional buying and robust price structure. Holding above ₹4,828 could push it towards ₹5,050 and ₹5,200 soon. A stop-loss at ₹4,700 is advised for traders.

Granules India has given a fresh breakout on the daily chart with strong volume and bullish momentum. Holding above ₹571 could drive gains towards ₹610 and ₹630 levels. Traders should consider entering at current levels with a stop-loss at ₹550 to protect profits.

"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," he further added.

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