The Indian equity markets are expected to open on a positive note today, as indicated by the GIFT Nifty, which was trading around the 26,257 mark in early trades, reflecting an increase of 350 points. This suggests a cautiously optimistic sentiment, even as weak global cues and the absence of strong domestic triggers keep traders vigilant.
Investors are likely to track global market trends, crude oil prices, and institutional flows for further direction.
The Nifty opened with a gap-up during Muhurat trading. The index managed to hold its gains and ended in positive territory, closing above the 25,850 mark with a strong bullish candle. This positive momentum suggests continued strength in the near term. On the downside, immediate support is placed at 25,800, followed by 25,700, while on the upside, resistance is seen at 26,100 and 26,200 levels.
The Bank Nifty showed sustainability above its major support level of 58,000, indicating underlying strength in the financial space. However, if selling pressure emerges and the index falls below 57,500, a correction towards 57,000–56,850 is likely. On the upside, immediate resistance is seen at 58,500, followed by 59,000 and 59,500.
The Foreign Institutional Investors (FIIs) extended their buying streak for the fifth consecutive session on October 21, as they bought equities worth Rs 96 crore, while Domestic Institutional Investors (DIIs) turned net sellers, offloading equities worth over Rs 600 crore on the same day.
In the current environment of heightened volatility and mixed market cues, traders are advised to maintain a cautious “buy-on-dips” approach, particularly when using leverage. Booking partial profits during rallies and maintaining tight trailing stop-losses is recommended to manage risk effectively.
Fresh long positions should be considered only if the Nifty sustains above the 26,200 mark. While the broader market undertone remains cautiously bullish, close monitoring of key technical levels and global developments will be crucial in the sessions ahead.