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NIFTY WEEKLY OUTLOOK – 31 ST October 2026

The Nifty index started the week at 22,524.40, around 75 points lower than the previous week's close. Initial selling pressure dragged the index to a weekly low of 22,387.35 on the first trading day, where strong buying interest emerged. Subsequently, the index moved into sideways consolidation before witnessing a breakout and gaining momentum towards the end of the week. Nifty closed at 23,053.10, up 453.10 points (+2.00%), indicating improving market sentiment and renewed buying interest.

The weekly chart has formed a strong bullish candle after finding support near the 200-Week EMA around 22,398, coinciding with the long-term rising trendline. Nifty has sustained above this crucial support for five consecutive weeks. The 50-Month EMA also provides support, while the 50-Week EMA around 23,951 remains a major overhead hurdle.

The weekly RSI has recovered to 43.35, marginally above its average of 43.34, indicating improving momentum. However, it remains below the neutral 50 mark, suggesting scope for further momentum improvement.

Sector-wise, market participation remained broadly positive, with all major sectoral indices closing higher. Nifty Pharma led the gains with a 7.09% rise, followed by Media (+4.34%) and Realty (+3.77%). Metal, Auto, FMCG and PSU Bank also gained between 2.0% and 2.7%, while Banking and Financial Services recorded relatively modest gains.

Technically, Nifty has staged a strong rebound from the 200-Week EMA and rising trendline support, followed by a breakout from its recent sideways consolidation. This has improved the short-term technical structure, although the index needs to overcome the immediate moving average resistance to extend the recovery.

On the upside, immediate resistance is placed at 23,200, coinciding with a cluster of daily moving averages. A decisive breakout above this level could pave the way towards 23,700–24,000, where the 100-Week EMA and 200-Day EMA are positioned. On the downside, immediate support is seen at 22,850, followed by the crucial 22,600–22,400 zone, backed by the 200-Week EMA and rising trendline. Traders may adopt a selective buy-on-dips approach while monitoring these key levels..

Support Levels :- 22,400 – 22,600 – 22,850

Resistance Levels :- 23,200 – 23,700 – 24,000

Overall Bias :- Sideways to Bullish

BANKNIFTY WEEKLY OUTLOOK – 31^st October 2026

Bank Nifty opened the week at 54,250.30, almost flat compared to the previous week's close. Initially, the index witnessed selling pressure and declined to a weekly low of 53,626.15, where strong buying interest emerged. Subsequently, the index staged a sharp recovery of nearly 1,440 points from the weekly low to its week high of 55,068.50 before witnessing some profit booking and closing at 54,686.95, gaining 399.60 points (+0.74%).

The weekly price action reflects the emergence of buying interest at lower levels, with Bank Nifty managing to close in the green after recovering sharply from its weekly low. The formation of a lower shadow on the weekly candle indicates buying support at lower levels. However, the index continues to trade below its 50-week EMA, currently placed around 56,201, indicating that the broader trend is yet to regain strength. On the positive side, it continues to hold comfortably above its 200-week EMA, placed around 50,764, which remains an important long-term support.

The Weekly RSI stands at 42.17, while its average is around 47.71. Although the RSI has recovered from lower levels, it continues to trade below both its average and the neutral 50 mark, indicating that momentum remains relatively weak. A sustained improvement in RSI would be important for strengthening the bullish momentum.

Sectorally, both the Nifty Private Bank and Nifty PSU Bank indices contributed positively and supported the recovery in Bank Nifty. Among the index constituents, Kotak Mahindra Bank emerged as the top performer, gaining 7.22% during the week, while AU Small Finance Bank was the top laggard, declining around 7.39%.

Going ahead, Bank Nifty is likely to maintain a sideways to bullish bias, provided it sustains above the immediate support zone of 54,500. A decisive move above 55,000 could strengthen the recovery and

pave the way towards the crucial resistance zone of 55,300–55,700. However, a sustained breakout above this zone would be required to improve the broader technical structure. On the downside, the 54,200–53,600 zone remains a crucial support area, and holding this zone would be important to maintain the current recovery momentum.

Support: 54,500 | 54,200–53,600

Resistance: 55,000 | 55,300–55,700

Overall Bias: Sideways to Bullish

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