Nifty Weekly: 200-Week SMA Reclaimed, IT Leads

Nifty closed the week at 23,146.15, up 2.78%, after reclaiming its 200-week average (22,649), which now acts as the first support. The 22,200 zone has held twice in recent weeks, which adds to the idea of a higher low forming. RSI at 42.37 is climbing towards the midline, while the 50-week average (24,406) remains the larger hurdle above. Sector leadership came from Nifty IT, up 11.72% against the index’s 2.78%, a relative strength of +8.94 points. Tata Elxsi (about 23%),

(about 18%), TCS (about 15%) and Infosys (about 13%) were among the IT stocks that led the gains. Auto (+3.65%) and Realty (+2.74%) moved in line with the index, while Pharma (-0.69%) and FMCG (-0.55%) ended lower. Options data (Sensibull, 16 Oct): PCR is 1.33, with Put OI (36.99 Cr) above Call OI (30.17 Cr) and Max Pain at 23,050 for the 19 Oct expiry. Levels: resistance at 23,500-23,550. Support at 22,780-22,650, then 22,200. A move above 23,500-23,550 could extend the recovery. A close below 22,780-22,650 would put the reclaim to the test, and in between, consolidation is possible. A reclaim of a long-term moving average is a constructive sign, but sustained trading above it, with leadership from strong sectors, decides whether it holds. Disclaimer:This is for educational purposes only and is not investment advice. Please consult your financial advisor before making any investment decisions. SEBI Registered Research Analyst — INH000025212. Source: Options data: Sensibull. Sector data: NSE India.