NIFTY 50 Outlook for 27 October 2026
As expected, NIFTY 50 has entered into a 3-wave corrective price action and is forming a higher highs and higher lows formation on shorter time frames. The prices are still trading below all the major EMAs, which is a negative sign; however, during corrections, prices tend to revert to their mean. If the prices had to fall further, after reverting to their mean around 22833 (reading of 20-day EMA) or towards 61.8% retracement of the last impulsive move, which comes at 22869, prices would start reacting towards the downside. Although, a mean-reverting or counter-trend move on the upside can be played in intraday.
As far as the derivatives positioning is concerned, short positions unwinding were seen along with long build-up. Traders are anticipating a counter-trend rally in the index; however, it is anticipated to be limited according to their positioning.
Key Resistances: 22840 and 22950
Key Supports: 22600 and 22520
Strategy: Buy Nifty (Spot level) on dips around 22600 with a stop-loss of 22500, targeting 22750
ADITYA THUKRAL, PROPRIETOR, AT RESEARCH AND RISK MANAGERS
SEBI Registered Research Analyst INH000013794
Refer to the disclaimer: