Introduction
After a strong uptrend over the past sessions, the Indian markets paused slightly on October 22, with both Nifty 50 and Bank Nifty facing mild profit-booking near their respective highs. Despite the minor cooling off, both indices continue to show a powerful underlying structure supported by strong moving averages and momentum indicators.
In this Trade Setup for 23 October 2025, dhwani patel, SEBI registered research analyst, outlines the exact Nifty and Bank Nifty levels, along with 10 structured setups that capture the market’s short-term psychology and opportunities for the day.
⚙️ Setup 1 — Nifty 50: Key Resistance & Support Levels
Nifty Close: 25,869
- Resistance based on Pivot Points: 25,918, 25,943, 25,985
- Support based on Pivot Points: 25,835, 25,809, 25,768
Special Formation:
The Nifty 50 formed a bearish candle with minor upper and lower shadows, reflecting mild volatility near the highs. Yet, the index continues to trade at the upper Bollinger Band, showcasing strong price momentum.
All key moving averages remain upward sloping, indicating sustained trend strength. The RSI stands elevated at 72.26, while the MACD maintains a strong upward crossover with an expanding histogram — evidence that bullish momentum remains dominant despite minor cooling.
Interpretation:
- Holding above 25,835 keeps the uptrend intact.
- Breakout above 25,943–25,985 could fuel a push toward the 26,000 zone.
- Any dip near 25,768–25,800 may be seen as a buying opportunity.
For traders using a Nifty futures trading guide, the market remains buy-on-dips oriented, with focus on trailing stops instead of initiating fresh shorts.
⚙️ Setup 2 — Bank Nifty: Pivot & Fibonacci Levels
Bank Nifty Close: 58,007
- Resistance based on Pivot Points: 58,119, 58,183, 58,285
- Support based on Pivot Points: 57,914, 57,851, 57,748
- Resistance based on Fibonacci Retracement: 58,735, 60,142
- Support based on Fibonacci Retracement: 57,152, 56,466
Special Formation:
The Bank Nifty traded near the upper Bollinger Band, forming a small bearish candle within the previous day’s range — a sign of consolidation rather than reversal.
The index remains firmly in an uptrend, with RSI at 76.17 and MACD maintaining its bullish trajectory. The higher top–higher bottom formation continues to confirm buyers’ dominance.
Interpretation:
- Sustaining above 57,914 may attract renewed buying interest.
- A move beyond 58,183–58,285 can lead to fresh highs near 58,735.
- Immediate supports rest at 57,851–57,748, followed by 57,152 (Fibonacci).
This setup remains favorable for index futures trading strategies India focusing on long continuation plays in banking names.
⚙️ Setup 3 — Derivatives & Option Chain Analysis
Nifty Call OI: 25,900, 26,000
Nifty Put OI: 25,800, 25,700
Bank Nifty Call OI: 58,000, 58,500
Bank Nifty Put OI: 57,800, 57,500
Interpretation:
Options data suggests consolidation with a bullish tilt. Strong put writing near 25,800 and 57,800 indicates firm support zones.
If both indices hold above these levels, we may witness another short-covering push toward upper resistance zones.
⚙️ Setup 4 — Market Sentiment & PCR
The Put-Call Ratio (PCR) for Nifty hovers near 1.18, signaling mild bullish sentiment.
Market positioning shows steady optimism, but traders should monitor for a sharp PCR rise above 1.3, which often precedes near-term cooling.
For now, sentiment remains solid, with dips viewed as opportunities to add positions.
⚙️ Setup 5 — Volatility Outlook
India VIX remains calm at around 10.4, indicating low fear levels.
Low volatility supports trend-following setups, but it can also precede breakout volatility.
As dhwani patel notes,
“Complacency in low VIX phases is a trader’s trap — when volatility wakes up, it rarely knocks first.”
Maintain defined stop-losses even in trending markets.
⚙️ Setup 6 — Sectoral Focus
- Banks: Continue leading momentum, especially large-cap names like HDFC Bank and ICICI Bank.
- IT: Consolidating near recent highs.
- Auto & Realty: Seeing rotational inflows; remain strong.
- Metals: May stay volatile amid global commodity fluctuations.
For swing trading strategies India, look for stock setups aligning with sector leaders rather than laggards.
⚙️ Setup 7 — Technical Snapshot Summary
| Index | Candle Type | RSI | MACD | Trend Bias | Outlook |
|---|---|---|---|---|---|
| Nifty 50 | Bearish (minor) | 72.26 | Bullish | Uptrend | Positive |
| Bank Nifty | Bearish (inside bar) | 76.17 | Bullish | Strong Uptrend | Very Positive |
Both indices show signs of consolidation within strength.
The RSI nearing overbought levels suggests the need for patience and position scaling rather than fresh aggressive longs near resistance.
⚙️ Setup 8 — Global Cues & Institutional Flow
- US Markets: Ended mildly positive; Nasdaq led gains.
- Crude Oil: Stable near $86/barrel, keeping inflation concerns muted.
- FIIs: Continued inflows in large-cap financials and autos.
- DIIs: Added to exposure in select midcaps.
Global stability coupled with local institutional support continues to drive positive undertone for the Indian market.
⚙️ Setup 9 — Intraday Trade Plan
| Index | Bullish Above | Bearish Below | Neutral Zone |
|---|---|---|---|
| Nifty 50 | 25,918 | 25,809 | 25,835–25,900 |
| Bank Nifty | 58,183 | 57,851 | 57,900–58,100 |
Trading Strategy:
- Longs above resistance breakouts with volume confirmation.
- Trail stops to lock profits once momentum builds.
- Avoid shorts unless supports break with high-volume confirmation.
Maintain caution around midday volatility and expiry-related adjustments.
⚙️ Setup 10 — dhwani patel’s View
“Momentum may appear overextended, but strength within consolidation defines bull markets. Until key supports are breached, traders should respect the trend rather than resist it.”
The Trade Setup for 23 October 2025 signals a continuation of bullish control with intermittent consolidation.
As long as Nifty holds above 25,800 and Bank Nifty above 57,800, dips remain healthy and tradable.
⚠️ Key Takeaways
- Nifty Range: 25,768–25,985
- Bank Nifty Range: 57,800–58,300
- Bias: Bullish with mild consolidation
- Strategy: Buy-on-dips; trail profits near resistances
- Risk Note: RSI near overbought; use tight stop-losses
Final Thoughts
The uptrend remains intact, with short-term consolidation adding sustainability to the rally. Market breadth is firm, volatility is controlled, and institutional flows stay supportive.
As dhwani patel puts it —
“Discipline is your defense in record markets. The goal is not to predict the top but to protect your capital when it arrives.”
Disclosure & Disclaimer: dhwani patel (SEBI Registration No. INH200008608) is a SEBI registered research analyst. The information shared here is purely educational and does not constitute investment advice. Trading and investing involve risk. Readers should conduct independent research.
