Nifty 50, Sensex and the Nifty Bank index have risen very well last week. Nifty and Sensex were up 2.78 per cent and 3.11 per cent, respectively. Nifty Bank index on the other hand was up just over a per cent.

The rise last week has given a good relief for the Indian benchmark indices. The recovery that we have been hoping for is happening in line with our expectation. That gives greater chances for the indices to go further higher from here.

The Foreign Portfolio Investors (FPIs) continued to sell Indian equities for the third consecutive week. The equity segment saw a net outflow of about $830 million. For the month of October, the net FPI outflow stands at $5.41 billion.

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Short-term view: An immediate resistance is at 23,150. If this resistance holds, then an intermediate dip to 22,900-22,850 is possible. After this fall, a fresh leg of rise can take the Nifty above 23,150 and target 23,300-23,500.  If Nifty manages to breach 23,150 from here itself, then the rise to 23,300-23,500 can happen straight away.

An eventual break above 23,500 will then clear the way for a rise to 24,000 in the short term.

Nifty has to decline below 23,850 to come under pressure for a fall to 23,600 and lower again. But that looks less likely.

Medium-term view: The rise above 23,000 last week confirms that the broader 22,000-26,500 range is very much intact. The expected rise to 24,000 mentioned above will strengthen the bullish case. It will take the Nifty higher to 26,500, the upper end of the range, in the medium term.

That will keep intact our long-term bullish view as well . We expect the Nifty to breach 26,500 and rise to 28,000 and 30,000 in the long term.

We reiterate that Nifty has to decline below 21,800 to prove our bullish view wrong.

Short-term view: The resistance at 55,600 mentioned last week has been broken. This has given a good relief for the index. Nifty Bank index can rise to 56,700 or even 57,300 from here.

Support is in the 55,500-55,350 region. The index has to decline below 55,350 to turn the near-term picture negative. Only then a fall to 54,500-54,000 will come into the picture. But such a fall looks less likely. We see high chances for the index to sustain above the 55,500-55,350 support zone.

Medium-term view: The broader bullish view remains intact. The rise last week has largely reduced the danger of seeing 51,000 on the downside. The rise to 57,300 will keep the doors open to revisit 60,000-61,000 over the medium term.

We retain our long-term bullish view. Nifty Bank index can breach 61,000 eventually and rally to 65,000 initially and then to 68,000-69,000 over the long term.

A break below 51,000 is needed to negate our long-term bullish view.

Short-term view: The strong rise above 73,500 confirms the double-bottom pattern that we had indicated last week. That strengthens the positive bias. Good support is now in the 73,600-73,300 region.

Sensex can rise to test the immediate resistance level of 75,200. A break above it can then take it further higher to 77,000-78,000 in the short term.

In case the index turns down from around 75,200, then a dip to 73,500 can be seen first. Thereafter the index can rise back again and target 77,000-78,000.

A fall below 73,300 is needed to turn the outlook negative again. Only then, a fall back 71,500 will come into the picture.

Medium-term view:  The broader 71,000-86,000 range is very much intact. We see high chances for the Sensex to rise towards 86,000, the upper end of the range, over the medium term.

We continue to retain our long-term bullish view as well. Sensex is likely to breach 86,000 eventually and rally to 90,000 and 94,000 in the long term.

This bullish view will go wrong only if the Sensex declines below 69,800. But that looks unlikely.

The resistance in the 21,900-22,100 region continued to cap the upside for the second consecutive week. The weekly candles indicate a range. But on the daily candles, the bias still remains negative.

As long as the index stays below 22,100, the downside is open to see 21,300-21,200 or even 20,900-20,800.

A strong rise above 22,100 is needed to avoid this fall and clear the way for a rise to 22,800-23,000 again.

The long-term picture is still positive. We retain our bullish view of the index breaking above 23,500 eventually. Such a break can take the Nifty Midcap 150 index higher to 26,000-26,500 and 28,000 in the long term.

Even if the fall to 20,900-20,800 mentioned above happens, it will not alter the big picture. It will only delay the rise to 26,000-28,000.

The index is stuck between 17,350 and 17,970 over the last two weeks. The broader picture remains positive. Strong support is in the 17,300-17,200 region. As long as the index stays above this support zone, there are good chances for it to rise back towards 18,300-18,500.

An eventual break above 18,500 can boost the momentum. Such a break can then trigger a fresh rally towards 22,500-23,000 and 24,000-24,500 in the long term.

The short-term picture will turn negative only if the index declines below 17,200. If that happens, a fall to 16,700-16,500 can be seen. Such a fall will not negate our long-term bullish view. It will only delay the expected breakout above 18,500 and the rally to 23,000-24,500.

To prove this bullish view wrong, the Nifty Smallcap 250 index has to decline below 15,000.

Published on October 17, 2026