Nifty’s Bullish Breakout: Analysts Predict Fresh Highs Above 26,000 If This Support Holds

Indian equity markets saw a strong session on Thursday, with the Nifty index closing above 25,500. Analysts noted that the index broke above the falling trendline resistance drawn from the July highs, indicating a shift in sentiment in favour of the bulls. But the GIFT Nifty is suggesting a cautious start on Friday. 

Will markets sustain the recovery? SEBI-registered analysts shared the trade set-up on Stocktwits.

Trade Setup For October 17

 Mayank Singh Chandel highlighted that Nifty formed a strong bullish candle, closing near the day’s high, signalling aggressive buying interest. The index is now trading above all key short- to medium-term moving averages, including the 10, 20, and 50-day Exponential Moving Averages (EMAs), which confirms a strong trending structure. 

On the upside, Chandel identified immediate resistance at 25,650, while the next key hurdle lies near 25,800–25,850. A sustained breakout above this zone could open the doors for a move toward 26,000, where profit booking may emerge. 

On the downside, 25,450, which was earlier acting as a resistance, has now turned into immediate support due to the breakout. Below this, 25,330 will act as crucial support, followed by strong demand expected from the 25,150–25,000 zone, he added. 

Options data also supports a bullish view, signaling a short-term range of 25,450–25,850 with a positive bias. 

Chandel concluded that the market trend has turned bullish after Thursday’s breakout. As long as Nifty holds above 25,450, he advised traders to buy on dips. However, he also cautioned them to watch for volatile moves due to global cues and earnings reactions.

Bharat Sharma of Stockace Financial Services noted that as of Thursday’s close near 25,580, the focus now shifts to the 25,650 level, which remains the key resistance. A decisive move above this point on Friday could signal further upside without hesitation.

Sharma identified the immediate and final resistance for a potential push to new all-time highs above 26,200 at 25,650. If the Nifty index breaches this and sustains the momentum, it could test the 26,000–26,200 zone over the following days or weeks. 

Positionally, as long as the index holds 25,000, the market outlook remains bullish, according to him. 

For intraday trade, Sharma pegged immediate resistance at 25,650. A breakout above this level could extend targets toward 25,700, 25,750, and ultimately 25,820. On the downside, immediate support is seen near 25,550, followed by secondary support zones around 25,480, 25,440, and 25,400.

Dipak Takodara noted that the Nifty index had a strong trend day, breaking out above the triangle and finishing near the high on rising volume, with the Relative Strength Index (RSI) holding firmly bullish. 

While Takodara does not rule out a quick retest of 25,350–25,400, he believes that the path of least resistance is up toward 25,650–25,700, then 26,000+, as long as 25,100 remains intact.

A&Y Market Research identified Nifty (Intraday) resistance at 25,575-25,590, with support at 25,439-25,455. For Bank Nifty, they see resistance at 57,616-57,676 and support at 57,273-57,317.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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