GIFT NIFTY futures indicate that the NIFTY50 index will open lower on October 28, 2026. Investors expect a gap down opening as futures fell over 150 points. This movement sets the stage for a trading range between 22,000 and 23,000 points ahead of the weekly expiry on November 3. The key question is whether NIFTY50 can recover from this weak start.
- NIFTY50 futures point to a gap down opening.
- Resistance is strong near 23,000 points, supported by high open interest in 23,000 calls.
- Support is expected around 22,000 points, indicated by high open interest in 22,000 puts.
- Short-term technical indicators suggest bullish momentum.
- Market sentiment is influenced by global events and major IPO listings.
What is the expected trading range for NIFTY50?
The initial buildup for the weekly expiry on November 3 suggests that NIFTY50 will trade broadly between 22,000 and 23,000 points. This range is supported by options data where the highest open interest for calls is at 23,000, marking a resistance zone, and the highest open interest for puts is at 22,000, indicating support.
Why is the opening expected to be weak?
GIFT NIFTY futures dropped more than 150 points, signaling a weak opening for the NIFTY50 index. This decline follows a flat session on October 27. The weak futures market reflects cautious investor sentiment ahead of significant events such as the listing of India’s largest IPO by Jio Platforms.
What global factors are influencing the market?
Brent crude oil prices remain near $115 per barrel as investors watch diplomatic developments in the Middle East. Iran’s Supreme Leader has called for an end to the current state of "neither war nor peace," which could lead to negotiations affecting oil supply and prices. Additionally, the US stock market showed gains, especially in technology stocks, ahead of the Federal Reserve’s policy announcement, which also impacts global market sentiment.
How are Asian markets performing?
Asian markets rallied on the morning of October 28. The Korean KOSPI surged over 5% following strong earnings from SK Hynix. Japan’s Nikkei and Taiwan’s weighted benchmark also rose by approximately 1.6%, reflecting optimism in chip stocks and technology sectors.
What do technical indicators say about NIFTY50’s short-term trend?
NIFTY50 closed the October series slightly down by 8 points but remains above its 20-day and 50-day exponential moving averages (EMA), indicating short-term bullishness. The hourly chart shows a potential positive crossover where the 20 EMA may cross above the 50 EMA, which often signals a breakout from consolidation. However, daily charts reveal strong resistance near 22,800 points, which corresponds to the daily 20 EMA level.
What levels will determine NIFTY50’s direction?
A clear trend will emerge if NIFTY50 closes above 22,800 or below 22,300 points on a weekly basis. Closing above 22,800 would suggest a bullish breakout, while falling below 22,300 could indicate further weakness.
What is the outlook for open interest and institutional activity?
The net open interest in short positions decreased from 267,000 to 220,000 contracts, suggesting lighter positioning by foreign institutional investors (FIIs). This change may reflect cautious trading ahead of key market events.
Disclaimer: Derivatives trading involves significant risk and should only be undertaken by traders who fully understand these risks and use risk management strategies such as stop losses. This article does not recommend any specific stocks, securities, or trading strategies. The securities mentioned are for example purposes only.
