Nifty 50, Sensex and Nifty Bank indices began the truncated week on a strong note. The indices were up 1.5 per cent each mid-week. But they fell towards the end of the week giving away some of the gains. However, this movement is very much in line with our expectation. The broader trend is still up. The reversal that has happened from the intraweek high last week will just be a short-lived correction. Supports are there to limit the downside for the benchmark indices and keep the broader uptrend intact.
Among the sectors, the BSE IT index surged the most last week. It was up 3.16 per cent.
FPIs buy
Foreign Portfolio Investors (FPIs) bought Indian equities for the third consecutive week. But the quantum of purchase was less. The equity segment saw a net inflow of $96.2 million last week. If the FPI increase their purchase quantum, then that can aid the Sensex and Nifty to reach new highs.
Nifty 50 (25,795.15)
Short-term view: The resistance at 26,100 has held very well. A corrective dip to 25,600 or 25,400 is possible this week. Thereafter, Nifty can rise back towards 26,100-26,200. An eventual break above 26,200 will have the potential to take the index up to new highs.
The short-term outlook will turn negative only if the Nifty breaks below 25,400. Such a break, though less likely, can drag the index down to 25,000 or 24,700.
Medium-term view: The broader bullish view remains intact. Nifty can target 28,000 in the medium term. A break above 26,200 will clear the way for this. A corrective fall from around 28,000 to 27,000-26,500 is possible before the Nifty targets 31,000-32,000 over the long term.
Support is in the 24,000-23,500 region. Nifty has to decline below 23,500 to negate the bullish view. Only then the outlook will turn bearish for a fall to 22,000.
Nifty Bank (57,699.60)
Short-term view: A dip is likely in the near term. But that will be short-lived. Supports at 57,300 and 57,000 can limit the downside. A bounce from either of these two supports can take the Nifty Bank index up to 58,500 and 59,200 in the short term.
The 57,000-56,900 region is an important support. The short-term outlook will turn negative only if the index declines below 56,900. If that happens, a fall to 56,000 can be seen.
Medium-term view: The broader picture remains bullish. A decisive break above 59,200 will have the potential to take the Nifty Bank index up to 61,500-62,000 over the medium term. From a long-term perspective, a break above 62,000 will then pave way for 65,000 and higher. For now we will first look for the rise to 62,000.
Strong support is around 54,000. Nifty Bank index has to decline below 54,000 in order to negate the rise to 62,000 and higher. That looks less likely.
Sensex (84,211.88)
Short-term view: The rise to 85,300 mentioned last week almost happened. Sensex touched a high of 85,290.06 and then fell back from there. A corrective fall to 83,300-83,000 looks likely this week. However, a fall below 83,000 is unlikely.
A rise from the 83,300-83,000 region can take the Sensex up to 85,500 in the short term.
Sensex has to decline below 83,000 to come under pressure for a fall to 82,200-82,000.
Medium-term view: The broader view remains bullish. Our view of the Sensex targeting 88,000-89,000 in the medium term and 91,000-92,000 in the long term remains intact. As mentioned last week, the upside can extend even to 94,000-95,000 if the momentum remains strong.
The broad 80,000-79,000 will be the important support to watch. Sensex has to decline below 79,000 to negate the bullish view and turn bearish.
Nifty Midcap 150 (21,890.90)
As expected, the Nifty Midcap 150 index witnessed a rise to 22,100. It touched a high of 22,100.65 and has come down from there. That keeps the 20,600-22,100 range intact.
Immediate support is at 21,700. Break below it can take the index down to 21,450. That in turn will keep the chances alive of seeing a fall to 20,800-20,600, the lower end of the range.
If the index manages to sustain above 21,700, there is a good chance of it rising and making a bullish breakout above 22,100. That can take the index up to 22,500 initially.
Such a rise will confirm the bullish inverted head and shoulder pattern. It will then clear the way for the rise to 23,000-23,500 in the medium term and 25,000-25,500 in the long term.
Nifty Smallcap 250 (17,219)
The resistance at 17,300 mentioned last week is holding well. The Nifty Smallcap 250 index made a high of 17,354.50 and has come down.
Immediate support is at 17,100. If the index sustains above it, then a rise to 17,600 can be seen this week. A break above 17,600 can take it further higher to 18,000-18,100.
In case the index breaks below 17,100, a fall to 16,900 or 16,700 can be seen.
From a big picture, 18,100 is a crucial resistance. A break above it will confirm the bullish inverted head and shoulder pattern. That in turn will trigger a rally to 20,000 in the medium term and 21,500-22,000 in the long term.
The Nifty Smallcap 250 index has to decline below 16,500 to negate this bullish view.
Published on October 25, 2025
