Introduction

After several sessions of steady upward movement, Indian equities showed visible signs of fatigue on October 24, as both Nifty 50 and Bank Nifty encountered selling pressure at higher levels. Traders booked profits near resistance zones, leading to a mild correction.

Despite this short-term weakness, both indices remain comfortably above their key moving averages, indicating that the broader structure is still bullish.

In this Trade Setup for 27 October 2025, dhwani patel, SEBI registered research analyst, analyzes the Nifty and Bank Nifty levels, options data, and key setups to help traders plan their strategy for the upcoming session.

Setup 1 — Nifty 50: Key Resistance & Support Levels

Nifty Close: 25,795

• Resistance (Pivot Points): 25,906, 25,959, 26,045
• Support (Pivot Points): 25,733, 25,680, 25,593

Market Outlook:
Nifty formed a long bearish candle with a small lower wick, indicating sustained selling pressure. This price action broke the six-day higher-high pattern visible on the daily chart, although the weekly trend remains upward.

Momentum indicators show early signs of cooling. The RSI slipped to 67.92, and the Stochastic RSI triggered a bearish crossover — implying fatigue in momentum. However, the MACD remains on a positive crossover with the histogram still above zero, confirming that the larger uptrend remains intact.

Interpretation:

• Immediate resistance lies near 25,906–26,045; a breakout beyond this zone may reinitiate buying.
• Strong supports are placed at 25,680–25,593, where traders may expect recovery attempts.
• Price is still well above its 20-day EMA, confirming that short-term consolidation is healthy, not bearish.

For those following the Nifty futures trading guide, traders can stay cautiously bullish with tight stop-losses below 25,590.

Setup 2 — Bank Nifty: Key Resistance & Support Levels

Bank Nifty Close: 57,700

• Resistance (Pivot Points): 58,092, 58,269, 58,556
• Support (Pivot Points): 57,518, 57,341, 57,054
• Resistance (Fibonacci): 58,762, 60,181
• Support (Fibonacci): 57,407, 56,669

Market Outlook:
After touching a record high, the Bank Nifty reversed to form a bearish candle with a lower wick — reflecting intraday volatility and ongoing profit-booking. The pattern shows a lower high–lower low formation, signaling short-term exhaustion after a strong run-up.

Momentum is fading slowly. The RSI near 68.69 is approaching a support zone, while the Stochastic RSI has entered a bearish crossover. Despite this, the MACD remains positive and key moving averages continue to slope upward.

Interpretation:

• Resistance lies around 58,092–58,556. A close above these levels can push Bank Nifty back toward 58,762.
• Immediate support exists near 57,341–57,054, with major Fibonacci support at 56,669.
• Overall structure stays positive — the market is digesting gains, not reversing trend.

For traders using index futures trading strategies India, dips near 57,400 remain ideal accumulation points for positional setups.

Setup 3 — Nifty Call Options Data

• Max Call OI: 26,500 (2.02 crore) → major resistance
• Next Resistances: 26,000 (1.78 crore), 26,200 (1.41 crore)
• Fresh Call Writing: 26,000 (+63.91L), 25,900 (+60.4L), 25,800 (+57.64L)
• Call Unwinding: 25,500 (–7.98L), 25,200 (–3.17L)

Interpretation:
Call writers are aggressively defending 26,000–26,500, indicating a strong supply zone. This range will remain a key hurdle for Nifty unless it breaks out with volume and momentum.

Setup 4 — Nifty Put Options Data

• Max Put OI: 25,500 (1.28 crore) → strong base
• Next Supports: 25,700 (97.5L), 25,800 (73.0L)
• Put Writing: 25,700 (+28.59L), 25,500 (+24.81L), 25,750 (+24L)
• Put Unwinding: 26,000 (–28.81L), 25,900 (–20.34L)

Interpretation:
Strong Put buildup near 25,700–25,800 suggests buyers are defending this zone actively. As long as these levels hold, downside risk remains limited.

Setup 5 — Bank Nifty Call Options Data

• Max Call OI: 58,000 (16.81L) → short-term resistance
• Next Resistances: 58,500 (16.45L), 59,000 (16.12L)
• Fresh Call Writing: 59,500 (+7.42L), 58,000 (+3.99L), 59,000 (+3.85L)
• Call Unwinding: 57,000 (–3.66L)

Interpretation:
Profit-booking was visible in higher strikes, with fresh writing around 58,000–59,000. These levels will likely cap upside unless momentum returns with strong volumes.

Setup 6 — Bank Nifty Put Options Data

• Max Put OI: 56,000 (16.62L) → strong base
• Next Supports: 57,000 (15.7L), 57,500 (9.81L)
• Put Writing: 56,000 (+2.15L), 57,700 (+1.58L)

Interpretation:
Put writers remain active near 57,000, confirming that traders are still betting on the continuation of the bullish structure.

Setup 7 — Put-Call Ratio (PCR)

Nifty PCR: 0.76 (down from 0.95)

A falling PCR signals short-term caution as Call writing has increased. However, the ratio is still above oversold territory, implying consolidation rather than outright weakness.

Setup 8 — India VIX

India VIX: 11.59 (–1.21%)

Volatility eased slightly and remains well within the bullish comfort zone. As long as VIX trades below 13, markets are unlikely to see major disruptions.

As dhwani patel explains,
“Low volatility hides the best trading setups — they emerge quietly while others wait for noise.”

Setup 9 — Intraday Playbook

Index	Bullish Above	Bearish Below	Neutral Zone
Nifty 50	25,906	25,680	25,750–25,850
Bank Nifty	58,092	57,341	57,500–57,900

Strategy:

• Trade light until confirmation of reversal or breakout.
• Focus on reaction to support zones for intraday long opportunities.
• Avoid chasing momentum; prioritize setups near major levels.

Setup 10 — dhwani patel’s View

“Short-term pullbacks are part of strong trends. The key is to differentiate between profit booking and panic — markets often test your patience before rewarding it.”

The Trade Setup for 27 October 2025 signals short-term consolidation within a larger bullish framework. Traders should monitor 25,700 on Nifty and 57,300 on Bank Nifty as crucial zones to gauge market direction.

Key Takeaways

• Nifty Range: 25,600–26,000
• Bank Nifty Range: 57,200–58,300
• Market Bias: Consolidation within uptrend
• Strategy: Buy-on-dips near support; stay cautious near upper resistance bands.

Final Thoughts

Markets are adjusting after a record run-up — a natural and necessary phase for sustainable momentum.
For traders and investors following index futures trading strategies India, the focus should remain on managing exposure, respecting key supports, and letting the broader trend guide decision-making.

As dhwani patel concludes:

“Every correction tests conviction. The strongest hands stay steady while the weak hands seek certainty.”

Disclosure & Disclaimer: dhwani patel (SEBI Registration No. INH200008608) is a SEBI registered research analyst. The views expressed are educational in nature and not investment recommendations. Trading in financial markets involves risk. Please conduct your own research before making any investment or trading decision.