With bullish momentum intact, markets eye fresh highs—but overbought signals suggest caution near key resistance levels
Nifty 50 Rally: Can the Momentum Hold?
The Nifty 50’s Diwali rally has been nothing short of impressive, notching a fresh 52-week high on October 17, 2025. The index surged 125 points to close at 25,710, brushing against the bearish gap of October 2024. Analysts believe that a decisive move above 25,740 could unlock the path to 25,900–26,000.
- Immediate support rests at 25,500, followed by 25,350, offering a cushion for dip-buying strategies.
- Resistance lies near 26,000, a psychological hurdle that aligns with prior swing highs.
While the structure remains bullish, market breadth revealed caution—with more stocks under pressure than those gaining on the NSE, hinting at selective participation.
Technical Patterns Suggest Uptrend Continuity
Rajesh Bhosale from Angel One highlights a ‘Cup-and-Handle’ breakout on the weekly chart and a trendline breach, signaling a structural shift out of consolidation.
- The breakout indicates that bulls have reclaimed control after over a year of muted returns.
- Bhosale advises a buy-on-dips approach, with targets of 26,000–26,277 in sight.
Rajesh Palviya from Axis Securities echoes similar optimism. The weekly bullish candle and break above a medium-term trendline suggest the rally has legs. His expected range: 26,250 to 25,000, with a positive bias intact.
Anshul Jain of Lakshmishree Investments tempers expectations, noting that the Nifty is stretched above key moving averages, signaling a short-term breather could be on the cards.
Key Takeaway: As long as 25,500 holds, the bullish trajectory remains valid—but the 25,750–25,800 zone could act as short-term resistance.
Nifty 50 Trading Strategies
- Rajesh Bhosale: Buy on dips near 25,600 | SL: 25,450 | Target: 26,000–26,300
- Rajesh Palviya: Buy near 25,600 | SL: 25,500 | Target: 25,850–26,000
- Anshul Jain: Buy on dips to 25,600 | SL: 25,550 | Target: 25,750
Bank Nifty in Uncharted Waters
Bank Nifty’s breakout above prior highs reflects its leadership in this rally. Closing at 57,713 with a gain of 291 points, the index has now entered uncharted territory, making it more challenging to define resistance levels with precision.
- Next major targets: 58,500–59,000, provided 57,000 support holds.
- A breach below 57,250 may trigger profit booking down to 56,500, experts warn.
“A consolidation phase may emerge, but this would be healthy and supportive of the larger trend,” says Bhosale.
Palviya adds that the weekly structure is robust, supported by RSI and stochastic momentum, keeping the index firmly in bull territory.
Jain, however, points out that the index is extended above EMAs, increasing the likelihood of a pullback to 57,250 before another leg higher.
Bank Nifty Trading Strategies
- Rajesh Bhosale: Buy near 57,400 | SL: 56,900 | Target: 58,500 / 59,000
- Rajesh Palviya: Buy around 57,500 | SL: 57,300 | Target: 58,000–58,200
- Anshul Jain: Buy dips to 57,200 | SL: 56,500 | Target: 58,500
Final Thoughts: Strength with Caution
Both Nifty 50 and Bank Nifty have shown impressive resilience and momentum, especially during the festive season. However, with overbought technical indicators, stretched valuations, and selective participation, traders must remain vigilant.
As long as key support levels hold, the buy-on-dips strategy remains favored. But traders should scale into positions gradually and watch for signals of exhaustion.
Nifty 50 and Bank Nifty continue their Diwali rally, supported by bullish technicals and strong momentum. However, stretched indicators and resistance zones near 26,000 and 58,500 suggest a pause or minor pullback may precede further gains.
