Nifty may test key support levels as downward trend persists

Based on market closing on October 22

In the last trading session, Nifty closed at 24,781.10, down by 72.95 points (-0.29%). The index may continue its downward trend if it moves below the key intraday support level of 24,700.

Nifty opened positively at 24,956.20 and reached an intraday high of 24,978.30 during the morning session. However, the index gradually declined, hitting an intraday low of 24,679.60 before settling at 24,781.10. Most sectors ended the day in negative territory, with only the auto and financial services sectors showing resilience. The media, metal, realty, and IT sectors were the biggest losers. Market breadth was negative, with 1,995 stocks advancing, 629 declining, and 122 remaining unchanged. Among the top Nifty gainers were Bajaj - Auto, HDFC Bank, Asianpaint, and M&M, while TataConsum, Kotak Bank, Bajaj Finsv and BPCL led the losers.

On the technical front, momentum indicators continue to suggest a bearish outlook, with the Nifty trading below its short- and medium-term moving averages. Additionally, the formation of a black candle on the daily chart and a close below the previous session’s level points to a continued negative bias. The index has immediate support at the 24,700 level, while resistance is seen at 24,800. A sustained trade below 24,700 could extend the downward movement. For the index to shift to a positive trajectory, it would need to break above 24,800.

Intraday levels  

Support: 24,700, 24,600, 24,500

Resistance: 24,800, 24,900-25,000 (15-Minute Charts)

Positional trading levels  

Short-term support: 24,500, 24,000

Resistance: 25,250, 25,800

Bank Nifty technical outlook

In the last trading session, Bank Nifty closed at 51,962.70, posting a decline of 131.50 points. From a technical perspective, momentum indicators suggest a neutral trend, with the index remaining above its short-term moving averages. However, the formation of a black candle on the daily chart, along with a close just below the key support level of 52,000, indicates a slightly negative bias.

On the downside, the index has immediate intraday support at 51,800, while resistance is seen at 52,100. If Bank Nifty falls below the 51,800 level, the downtrend is likely to extend. Otherwise, the index may consolidate around this level in the near term.

Intraday levels:

Support: 51,800, 51,600, 51,400

Resistance: 52,100, 52,400, 52,600

Positional traders

Short-term support: 52,000–50,500

Resistance: 53,350–54,400.