Indian equity markets began the week on a strong note, with the Nifty index reclaiming the 25,000 mark. The rally was supported by banks and technology stocks ahead of the Q2 earnings season. 

Will markets maintain momentum as they head into the weekly expiry session on October 7? SEBI-registered analysts shared the trade setup on Stocktwits.

Trade Setup For Tuesday 

From a technical standpoint, analyst Mayank Singh Chandel noted that the index reclaimed short- and medium-term moving averages and completed a 50% Fibonacci retracement of the recent correction from the September 18 high, which indicated improving momentum. The Relative Strength Index (RSI) has also strengthened to 55.26 with a bullish crossover, further supporting the positive outlook. 

Levels to watch 

. Immediate Resistance: 25,100–25,150 

. Upside Targets: Sustaining above 25,150 may drive the index towards 25,250, with 25,450 as the crucial breakout hurdle. 

. Immediate Support: 25,000 

. Next Support: 24,880 

The options data reflect a mixed but constructive outlook. Chandel concluded that as long as Nifty sustains above 25,000, the momentum remains in favor of the bulls. A decisive move above 25,150 could open the gates for a rally towards 25,250–25,450. But a failure to hold 25,000 may trigger a pullback towards 24,880.

Expiry Watch

Bharat Sharma of Stockace Financial Services highlighted that bullish momentum has set in, with Nifty trading above all crucial Exponential Moving Averages (EMAs). On the downside, 20 & 50-day EMA around 24,900 is seen as a positional support, with immediate resistance at 25,100. The next resistance levels are seen at 25,140-25,170-25,240 and higher. Immediate support is identified at 25,030, which, if breached, can take the Nifty index to 24,980-24,950-24,880.

As the market heads into the weekly expiry session on Tuesday, the Put Call Ratio (PCR) stood at 1.5, signaling a heavily bullish sentiment, though such a high reading appeared unsustainable. At-the-money (ATM) straddle premiums had melted down to just 90 points, suggesting that the market was not anticipating any major directional moves from a technical perspective.

Sharma concluded that if the 25,000 level is breached on the downside and sustained, it could trigger additional long unwinding. In such scenarios, aggressive writings often dominate expiry sessions. Otherwise, the market would likely end on a neutral note.

A & Y Market Research identified intraday Nifty resistance at 25,009 - 25,075, with support at 24,738 - 24800. For Bank Nifty, they see resistance at 56,133 - 56,205, and support at 55,850 - 55,921.

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