Nifty 50 (25,710) and Nifty Bank (57,713) advanced 1.7 per cent and 1.6 per cent respectively last week. Here is an analysis of the chart of futures contracts and the derivatives data of both indices:
Nifty 50
Nifty futures (October) (25,758) rose 1.4 per cent last week, a third straight gain. It broke out of a resistance at 25,500 and marked an intraweek high of 25,849 on Friday before moderating to the current level.
The chart shows a strong uptrend and there are no bearish patterns on the chart. However, Nifty futures is now facing a resistance, i.e., the upper boundary of a rising channel, at 25,850.
Therefore, we are likely to see a price correction from the current level. The price region between 25,420 and 25,600 is a support. Nifty futures can resume the uptrend from this price band if there is a decline.
A rally, either after a correction or from the current level itself, can lift Nifty futures to 26,000, a resistance. The subsequent barrier is at 26,250.
Supporting the bullish view, there was a long build-up in Nifty futures. As the futures rose, the cumulative open interest also increased (from 189 lakh contracts on October 10 to 199 lakh contracts on October 17).
Also, the Put Call Ratio (PCR) of weekly and monthly options, at 1.1 and 1.4 respectively, show a bullish inclination.
Overall, the broader trend is up for Nifty futures. Nevertheless, there is a chance for some moderation before witnessing the next uptick.
Strategy: Stay out for now. Buy if Nifty futures (October) declines to 25,500. Target and stop-loss can be 26,200 and 25,300 respectively.
But if the contract rises without a dip and breaks out of 25,850, go long with a stop-loss at 25,680. Book profits at 26,200.
Nifty Bank
Nifty Bank futures (October) (57,757) was up 1.6 over the last week, surpassing the resistance at 57,500. It marked a high of 57,920.20 on Friday.
The chart indicates that the bulls are in the driving seat and three consecutive weekly gains show strong momentum. However 58,000 is a potential resistance. While this is unlikely to alter the existing uptrend, there could be a corrective dip.
Notable support levels are at 57,000 and 56,800, which can arrest the decline and help in the resumption of the uptrend. Once this move begins, Nifty Bank futures can rise to 59,000. The upswing might even extend to 59,300 in the near term.
So, broadly, the price action of Nifty Bank futures denotes that the uptrend is intact although there might be a temporary decline. Over the past week, the cumulative open interest of Nifty Bank futures largely remained unchanged. This also supports the argument of a potential correction or at least a sideways consolidation.
That said, the PCR of October options stood at nearly 1.20, a positive sign.
Overall, like in Nifty futures, we are likely to see a minor fall in Nifty Bank futures too before it eventually marks fresh highs.
Strategy: Last week, we suggested buying Nifty Bank futures (October) at an average price of 56,680. As the contract has risen above 57,800, the revised stop-loss would now be at 57,200.
As there is a chance for a correction, we suggest exiting the longs at 57,800 rather than waiting for our earlier given target of 58,250.
After liquidating the longs, when Nifty Bank futures dips to 57,000, go long with a stop-loss at 56,400. Target can be 59,000.
But if the contract rises from the current level of 57,757 and breaches the resistance at 58,000, buy with a stop-loss at 57,400. Exit at 59,000.
Published on October 18, 2025
