Nifty Index Concludes October Series with Strong Gains and Positive Market Outlook

The Nifty index concluded the October series with a robust gain of approximately 5% on an expiry-to-expiry basis. On the final day of the series, it experienced a slight decline of 29.85 points, closing at 25,936.20. Meanwhile, the Nifty Bank index saw a modest increase of 99.85 points, ending at 58,214.10, marking nearly a 6% rise over the series and reaching a new all-time high.

India VIX edged up by 0.80% on Tuesday but still reflects a stable market sentiment. The current low volatility suggests cautious optimism among investors. Both institutional and individual investors remain actively engaged in the market. The outcome of the US Federal Reserve's meeting on Wednesday is eagerly awaited, as it is expected to result in a 25 basis point interest rate cut.

"The Nifty index delivered a strong October series close, with most sessions ending in the green and every intraday dip being swiftly absorbed—a classic hallmark of a healthy uptrend. While the index appears slightly stretched in the short term, this ongoing consolidation offers opportunities for fresh accumulation in sync with its higher high-higher low formation. Persistent put writing at lower strikes also indicates traders' conviction in the prevailing bullish momentum," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

"A sustained move above the 26,100 level could pave the way for fresh long build-up and short-covering, potentially driving the index toward 26,300 in the near term. On the downside, strong buying interest is expected around the 25,600-25,700 zone, which should act as a cushion against short-term corrections. As long as the index holds above this crucial support band, the broader trend remains decisively bullish. Traders are advised to maintain a 'Buy-on-Dips' approach, as a close above 26,000 may open the gates for the next leg of the uptrend," he further added.

"The index delivered an impressive October series close, with most sessions ending in the green and every dip being quickly absorbed - underscoring strong demand in the banking space, led by heavyweights. This behaviour exemplifies a healthy and sustainable uptrend. While the index appears slightly extended in the short term, its prevailing higher high-higher low structure suggests ample scope for continued accumulation. Persistent put writing at lower strikes further validates traders' confidence in the ongoing rally," commented Dhupesh Dhameja.

On Wednesday, October 29, Mehta Equities Ltd's technical analyst Riyank Arora recommended buying two stocks: UPL Ltd and Indian Bank.

UPL Ltd is trading at ₹702.60 with a stop-loss at ₹685 and targets set at ₹725 and ₹740. The stock has rebounded from recent lows and trades above key moving averages. Its volume pattern shows accumulation by market participants. A move above ₹705 could lead to achieving these targets.

Indian Bank is priced at ₹852.90 with a stop-loss at ₹835 and targets of ₹880 and ₹900. The stock maintains strong momentum with increasing volumes and has broken recent resistance levels. It remains above its short- and medium-term averages, indicating ongoing institutional buying.

Domestic Focus

Domestically, investors are concentrating on macroeconomic data and Q2 earnings reports from companies like L&T, Coal India, VBL, HPCL, CG Power, and Radico Khaitan. These factors will influence market movements alongside global developments.

The broader trend remains bullish as long as key support levels hold firm for both Nifty and Bank Nifty indices. Investors are advised to adopt a "Buy-on-Dips" strategy to capitalise on potential upward movements.

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