Stock Market Today: Nifty Makes October Start Special, Bank Nifty Shows Strong Strength
Today marked a new chapter for the stock market. For investors, the start of October was like a breath of fresh air, with bulls marking their return and indices posting a strong comeback. After the decline and uncertainty of the past few weeks, today’s momentum has raised new hopes, especially for those waiting for the market’s next move.
Stock Market Today: 25,000 Biggest Challenge for Nifty
The Nifty 50 gained nearly 1% in the first trading session of October and closed the day at 24,836. This closing recouped losses from the previous three days and formed a long bullish candle after the RBI policy. The biggest highlight in the stock market today was that the index held above the 100-day EMA, a positive signal for bulls.
Experts say that if follow-up buying occurs in the coming sessions, the Nifty will have to hold above the psychological and technical hurdle of 25,000. This level is also the midline of the Bollinger Bands, a breakout above which would place the Nifty’s next target at a swing high of 25,450. However, if this level is not crossed, the index could remain range-bound near the support level of 24,600.
RBI Policy and Stock Market Reaction Today
On the first day of October, the RBI kept the repo rate steady at 5.5% and also revised inflation and growth forecasts. This decision was expected by the market and restored investor confidence. Nifty gained momentum during the day and maintained a healthy rally until the close.
Turning to technical charts, Nifty has negated the lower high-lower low structure of the last eight sessions. The recent swing low of 24,587 is now considered a new higher bottom. The MACD is still in a bearish crossover, but the RSI has rebounded to 47.23 after a decline, indicating an improving sentiment.
According to Nagaraj Shetty, Senior Technical Analyst at HDFC Securities, “The short-term trend is clearly turning upward. Now, all eyes will be on 25,000 and above that, 25,200. The support zone remains strong around 24,600.”
Options Data Reveals a Clear Range
Analysis of weekly options data shows the Nifty holding a dominant range of 24,600–25,000. The market is still showing cautious optimism. Maximum Call open interest is at 25,000, while strong positioning is visible on the Put side at 24,700 and 24,600 levels. This clearly indicates that traders are currently operating within the safe zone, but as soon as Nifty breaks out above 25,000, the chances of a fresh rally will become stronger.
Bank Nifty Provides Strong Support to the Market
Bank Nifty was the biggest player in the stock market today. The index surged 712 points (1.3%) and closed at 55,348. This move coincided with a strong bullish candle, with Bank Nifty breaking all its key moving averages and the midline of its Bollinger Bands in a single session. Private banks participated in the rally, giving the market a solid push.
Technical indicators are also supporting this positive sentiment. The RSI, which was low in previous sessions, has now jumped from 41 to 55, indicating increased buying momentum in the market. Directional indicators have also crossed, pointing to a trend reversal.
According to Sudeep Shah, Head of Technical Research at SBI Securities, “The 55,500–55,600 zone is immediate resistance for Bank Nifty. If this level is breached, the rally could extend to 56,000 and then 56,300. On the downside, 55,000–54,900 will be a crucial support zone.”
India VIX Shows Calm
Another positive development for the market was the volatility index, India VIX, which fell 7.03% to 10.29. This decline has provided bulls with a comfort zone, as low volatility means that the market is currently less likely to experience panic selling.
Stock Market Today’s Emotional Takeaway
Today’s stock market was a moment of relief for investors. After a sustained decline, the market showed renewed energy as bulls returned. Nevertheless, experts say that a little patience is essential. A real breakout will only be confirmed when Nifty sustains above 25,000. Until then, discipline and patience will remain the key investment strategies.
Disclaimer:
The views and recommendations above are those of individual analysts or brokerage companies, not US News Weeks. We advise investors to check with certified experts before making any investment decisions.
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