Nifty Index Rebounds to 25,966.75 Amid Global Uncertainties and Bullish Sentiment

On Monday, the Nifty index rebounded after a rare two-day decline, closing at 25,966.75, up by 178.45 points. This recovery came just before Tuesday's monthly expiry. The Nifty Bank index also showed a strong recovery from its key support levels, closing at 58,114.25 with a gain of 414.65 points. Despite global uncertainties, market participants are managing risks effectively.

Dhupesh Dhameja, a Derivatives Research Analyst at SAMCO Securities, noted that the Nifty maintains a bullish setup, with dips being quickly absorbed. This indicates a healthy uptrend. He stated, "A sustained move above the 26,100 mark could trigger fresh long positions and short-covering, propelling the index toward 26,300 in the near term." Strong demand is expected around 25,600-25,700.

Dhameja also commented on the Nifty Bank index's performance: "The Nifty Bank index continues to reflect a strong bullish setup, with heavyweights in the banking space leading the charge." He added that a move above 58,500 could spark renewed buying interest and short-covering activity, pushing the index toward 59,000 soon.

The India VIX rose by 2.31% on Monday, suggesting a calm yet optimistic market sentiment. Traders are advised to adopt a "Buy-on-Dips" strategy as long as Nifty stays above its crucial support band. Dhameja mentioned that if Nifty closes above 26,000, it might trigger the next phase of the uptrend.

For the Nifty Bank index, Dhameja advised maintaining a "Buy-on-Dips" approach as well. He emphasized that as long as the index remains above its vital support band of 57,500-57,700, the broader trend is bullish. A decisive close above 58,500 could open doors for further upward movement.

Stock Recommendations

Riyank Arora from Mehta Equities Ltd. recommended buying MCX and Jayaswal Neco stocks on Tuesday, October 28. For MCX: Buy at ₹9,305 with a stop-loss at ₹9,000 and targets of ₹9,800 and ₹10,200. The stock shows a positive trend with strong buying interest and volume surge.

For Jayaswal Neco: Buy at ₹79 with a stop-loss at ₹74 and targets of ₹88 and ₹95. The stock has maintained upward momentum with consistent volume build-up and positive price action.

The views expressed are those of individual analysts or entities and do not reflect Goodreturns.in or Greynium Information Technologies Private Limited's opinions. We do not guarantee or endorse any content's accuracy or reliability. All information is for educational purposes only and should be verified independently before making investment decisions.