Trade Setup For Oct. 28: Nifty 50 Sees Key Support At 23,900–23,950

The NSE Nifty 50 has established key support levels between 23,900 and 23,950, with resistance at 24,500 and 24,700, according to analysts. The volatility index, India VIX, rose 4.74% to 14.63, indicating increased market volatility.

"Technically, Nifty formed a bearish candle on both daily and weekly charts, indicating weakness. The 150-Days Exponential Moving Average is placed near 23,950, along with the previous swing low at 23,893. Thus, the index will find good support in the 23,900–23,950 range," according to Hrishikesh Yedve, assistant vice president of technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.

"On the upside, 24,500 and 24,700 are significant resistance levels, and traders should consider booking profits on any bounce, given the prevailing bearish sentiment," he said.

The broader market has seen a roughly 8% decline from its peak at 26,277, driven by weak global cues, softer Q2 results, and significant FII outflows. "We expect this weakness to continue in the near term amid cautiousness among investors ahead of the US presidential election on Nov. 5," Siddhartha Khemka, head of research, wealth management, at Motilal Oswal Financial Services Ltd., said.

Bank Nifty followed a similar trend, ending the day in a negative territory at 50,787. Technically, Bank Nifty breached a crucial support level at 51,000, forming a bearish candle. "(The) 150-DEMA is currently placed near 50,380. As long as Bank Nifty respects 50,380, a bounce to 51,000 is feasible, but it should be used for profit booking. Sustaining below 50,380 might push Bank Nifty to psychological thresholds of 50,000," said Yedve.

"In the coming weeks, key events include the US elections and the US FOMC meet. Stock-specific action will continue based on Q2FY25 financial performance and management commentary," Shrikant Chouhan, head of equity research at Kotak Securities.