NIFTY Index Chart Analysis

The benchmark Nifty 50 index extended its winning streak for the fourth consecutive week during the truncated festive week, reflecting sustained optimism in the Indian equity markets. The positive undertone was driven by festive sentiment, encouraging developments on potential U.S.-India and U.S.-China trade discussions, the return of foreign institutional investors (FIIs) as net buyers, and a steady earnings season. These combined factors lifted the index beyond the 26,100 mark on an intra-week basis. However, despite this upward momentum, selling pressure emerged at higher levels, suggesting profit booking as the index struggled to sustain above the 26,000 zone. The long upper shadow on the weekly candle stands as evidence of this resistance, indicating hesitation among traders at elevated levels.[EasyDNNnews:PaidContentStart]

A key technical observation was the formation of a long-legged Doji on October 28, a candlestick pattern that often signals indecision or exhaustion after a sustained uptrend. This came after a strong 14-day upswing, implying that the market may be entering a short-term consolidation phase. Despite this pause, the broader technical structure remains robust. The Nifty continues to trade comfortably above its 20-, 50-, and 100-week moving averages, all of which are trending upward—a hallmark of a structurally strong market setup.

Additionally, the index holds above the 23.6 per cent Fibonacci retracement level of its prior rally, reaffirming underlying support and strength.Additionally, the index holds above the 23.6 per cent Fibonacci retracement level of its prior rally, reaffirming underlying support and strength.One of the most notable developments of the past fortnight was Nifty’s attempted breakout above a multi-month consolidation zone. The index managed to push through the falling trendline resistance that originated from the June highs—a technically significant event that could mark the beginning of a new bullish leg. Although last week’s close was just below the upper Bollinger Band, the overall setup points toward improving momentum. The breakout from the upper boundary of a broad symmetrical triangle has opened the possibility of a sustained directional move in the coming weeks, provided the breakout gets confirmed by strong follow-through price action.

In the near term, traders are closely watching the 25,700 level on the downside and 26,100 on the upside. The index appears to be consolidating within this 400-point range, and a decisive breakout on either side will likely dictate the next phase of movement. A clear move above 26,100 could propel the index toward 26,500–26,650, while a failure to hold 25,700 could trigger a correction toward 25,450.

Momentum indicators lend further insight. The weekly RSI, currently at 63.81, remains in a bullish range and shows no bearish divergence, while marking a fresh 14-week high—a positive signal. Meanwhile, the MACD stays in buy mode with a rising histogram, indicating that bullish momentum remains intact. Interestingly, the previous week’s candle, resembling a shooting star, did not witness any meaningful follow-through selling, which reinforces the market’s resilience.

Overall, while the technical setup continues to strengthen, traders should exercise caution until a confirmed breakout above 26,100. The broader trend remains positive, but adopting a measured approach—by trailing existing positions, safeguarding profits, and focusing on selective, stock-specific opportunities—is advisable. The index seems poised at a pivotal juncture, and the coming weeks will determine whether Nifty transitions decisively from consolidation to a new trending phase.

STOCK RECOMMENDATIONS
MIC ELECTRONICS LTD. ........................... BUY ......................... CMP ₹55.89
BSE Code : 532850
Target 1 .... ₹69 
Target 2 ..... ₹74 
Stoploss....₹52 (CLS)

MIC Electronics Limited stands as a key player in the Indian market, specializing in Railway Signalling Systems and LED Displays. MIC Electronics’ product portfolio includes a wide array of Railway Passenger Information Systems, LED Display Boards, Emergency Light Unit, Passenger Announcement & passenger Information System (PAPIS), Remote monitoring processing unit etc.

The stock rallied sharply from a low of Rs 44.20 to a high of Rs 82.97 in September. Following this surge, the stock witnessed a correction, which found support near the upward-rising trendline on the weekly chart—formed by connecting the lows since August. Notably, the stock is currently hovering around its 20-week moving average. Interestingly, during this corrective phase from Rs 82.97, the stock did not slip into the oversold zone; in fact, the RSI never fell below 40, indicating that the underlying strength remains intact. The correction has also occurred on declining volumes, a sign of weakening selling pressure. Moreover, on the weekly time frame, the +DMI line continues to remain above both the ADX and -DMI, reinforcing a positive directional bias for the stock.

Considering that the stock is trading near a crucial support zone, investors may look to initiate long positions at current levels, keeping a stop loss at ₹52 for a potential target range of ₹69–74.

SBI LIFE INSURANCE CO. LTD. ...................... BUY ................ CMP ₹1,935.65
BSE Code : 540719
Target 1 ...... ₹2,040 
Target 2 ..... ₹2,100 
Stoploss.....₹1,872 (CLS)

S BI Life Insurance, one of the most trusted life insurance companies in India, was incorporated in October 2000 and is registered with the Insurance Regulatory and Development Authority of India (IRDAI) in March 2001.

From a technical standpoint, the stock has broken out of a 59-week-long cup and handle pattern, a bullish continuation formation. The breakout was accompanied by a sizable bullish candlestick and above-average volume, signalling strong market participation. Currently, the stock is trading at a fresh all-time high, well above all its short- and longterm moving averages, and also aligns with the Guppy Multiple Moving Average (GMMA) setup conceptualized by Daryl Guppy—an indication of a robust uptrend.

On the weekly chart, the Bollinger Bands had been narrowing, suggesting volatility contraction. The subsequent breakout has led to a widening of the upper band, and the stock is now walking the band, which is a positive sign. Additionally, the weekly RSI continues to move in a bullish trajectory, further supporting upward momentum.

Given these factors, traders may consider buying the stock with a stop loss at ₹1,872 for a target range of ₹2,040–2,100.

*LEGEND: EMA - Exponential Moving Average. MACD - Moving Average Convergence Divergence  RMI - Relative Momentum Index  ROC - Rate of Change  RSI - Relative Strength Index

(Closing price as of October 28, 2025)

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