Nifty 50 Outlook for 29 October 2026
NIFTY 50 turned sideways after forming a lower high and a higher low, while the index continued to face resistance from the 20-day EMA. The larger trend remains negative, but market breadth improved, with most stocks at their 52-week lows and some adding to stocks trading at fresh 52-week highs. Also, a smart recovery in the stock prices was seen, where a lot of them were seen closing above the 20-day EMA, suggesting a possible reversal from the short-term downtrend. Based on improvement in the market breadth, a recovery in the index prices could be seen in the near term and a break above 22830 would confirm that the meaningful recovery could be on the cards, as a break above 22830 would confirm the emergence of a short-term uptrend (higher-high, higher-low structure).
As far as the derivatives positioning is concerned, aggressive long buildup was seen, as opposed to previous days where buyers were skeptical of creating long positions, while some low-confidence short positions were also added just to manage the delta of the overnight positions.
Key Resistances: 22830 and 22950
Key Supports: 22600 and 22450
Strategy: Buy Nifty (Spot level) on dips around 22620 with a stop-loss of 22520, targeting 22770
ADITYA THUKRAL, PROPRIETOR, AT RESEARCH AND RISK MANAGERS
SEBI Registered Research Analyst INH000013794
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