Bank Nifty Analysis: October 27, 2025

As of 10:24 AM IST on October 27, 2025, the Bank Nifty spot index is trading at 58,507.30, up 500.10 points (+0.86%) from the previous close. This follows a volatile week where the index closed flat at 57,699 on Friday amid profit booking after hitting a lifetime high. The broader market is showing resilience, with GIFT Nifty futures up ~0.13% at 25,921, signaling a mildly positive open for Nifty (around 25,850). Global cues are supportive: US markets closed higher (Nasdaq +1.2%), Asian indices are green, and Brent crude rose to $66.09. However, FIIs net sold ₹622 Cr on Friday, while DIIs bought ₹174 Cr—year-to-date, FIIs remain net sellers (₹2.39 lakh Cr), offset by DII buying (₹5.90 lakh Cr).

Key Q2 earnings today (e.g., Kotak Mahindra Bank, SBI Life, Dr. Reddy's) could drive sector-specific moves, with banking stocks like Kotak under focus post-results (profit down 2.7% YoY but NII up 4.1%). India VIX eased to 11.59, indicating lower volatility, but trade tensions (US-China tariffs) linger as a risk.

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Market Sentiment

• Bullish Bias: Index holding above key EMAs (20-day: ~57,300; 50-day: ~56,600; 200-day: ~55,200), with strong underlying structure. Recent recovery from lows near 57,482 suggests buying interest at demand zones. Weekly close flat but above 57,000 support reinforces uptrend.
• Bearish Risks: Profit booking post-highs could test 57,000 if global risks escalate. MCX's new Bullion Index launch today may divert some flows, but banking remains resilient.
• Overall Outlook: Buy on dips near supports; target upside to 58,500–59,000 if 58,000 holds. Forecast for end-October: ~58,740 (+6.1% from early-month levels).

Technical Analysis

Bank Nifty is in an upward channel on daily charts, consolidating below 58,150 resistance after Friday's pullback. RSI (14) at ~62 (neutral-bullish), MACD showing bullish crossover. Pivot levels (classic) point to intraday range of 57,900–58,700.

Intraday Strategy: Long above 58,000 (targets: 58,150/58,500; SL: 57,800). Short below 57,800 (targets: 57,300/57,000; SL: 58,000).

Swing View: Bullish if above 58,000; watch for Cup & Handle breakout on hourly charts.

Broader Context & Risks

• Positive Drivers: Strong DII flows, festive demand in autos/banking, and IMF's Asia growth outlook (despite slowdown risks).
• Headwinds: FII selling, US tariff threats, and overbought gold ($4,400/oz) signaling risk-off globally.
• F&O Ban: SAIL, Samman Capital—avoid fresh positions.