Nifty Poised For 26,000 Amid Diwali Optimism: SEBI Analysts

• The festive week could test new highs if momentum sustains above 25,000
• Key levels to watch include support at 25,100 and resistance near 26,200.
• Analysts cite strong RSI, volume confirmation, and a bullish cup-and-handle breakout.

Indian equity markets closed higher for the third straight week, with the Nifty reclaiming 25,700 on Friday. The GIFT Nifty indicates a strong start for markets on Monday. 

Investors will be watching for the momentum in this truncated trading week ahead due to the Diwali holiday and the weekly expiry session on Monday. Indian equity markets will be closed on Tuesday, October 21, for Laxmi Puja and on Wednesday, October 22, for Balipratipada. 

Will Nifty test new festive highs? SEBI-registered analysts shared the trade set-up on Stocktwits.

Trade Setup For October 20

Dipak Takodara noted that the Nifty index had a strong follow-through day, closing 25,709 on Friday with rising volume and Relative Strength Index (RSI) near 70, and it inched above 25,650–25,700.

Takodara added that while a quick retest of that band is possible, holding it keeps Nifty on the path toward 26,000 and then 26,200–26,277. He believes that the trend stays constructive above 25,100, and a break below 25,000 would signal a deeper pause.

Sunil Kotak highlighted positive price and volume action on Nifty’s weekly chart, with the RSI crossover above 60. He noted a breakout to the cup and handle pattern for the index, which indicates a strong momentum for the markets, with a price target of 29,000-29,400 likely in the next three to six months. Kotak added that this view holds till the time Nifty holds above 25,000.

A&Y Market Research identified Nifty intraday resistance at 25,742-25,757, with support at 25,575-25,590. For Bank Nifty, they pegged resistance at 57,827-57,887 and support at 57,616-57,676.

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

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