Trade Setup for October 30: Nifty bulls await cues from Fed outcome before pushing above recent high

Equity benchmark Nifty 50 index kicked off the November series on a strong note, opening 46 points higher and extending gains through the session.

After witnessing high volatility on Tuesday, the day of F&O expiry, the Nifty continued its upward momentum on Thursday. The index opened with an upside gap of 46 points and maintained its positive bias through most of the session.

A brief phase of consolidation was seen towards the end, before the index closed near the day's high, up 117 points at 26,054.

Among Nifty constituents, NTPC, Adani Ports, and ONGC led the gainers, while Dr Reddy's, Coal India, and BEL were the top laggards.

Barring Nifty Auto, all sectoral indices ended in the green. Nifty Oil & Gas, Metal, and Media outperformed the broader market.

The broader markets mirrored the benchmark's strength, with the Nifty Midcap 100 rising 0.64% and the Nifty Smallcap 100 advancing 0.43%.

Investors will now shift focus to key earnings due tomorrow from ITC, NTPC, Adani Power, DLF, and Hyundai Motor. Attention is also on the US Federal Reserve's policy outcome later today for cues on the future interest rate trajectory.

Optimism around trade progress, upcoming earnings, and sustained FII inflows is expected to support near-term sentiment.

According to Sudeep Shah of SBI Securities, the 26,100-26,150 zone will act as immediate resistance for the index. A decisive move above 26,150 could extend the rally towards 26,350, while support is seen at 25,850-25,800.

Nagaraj Shetti of HDFC Securities said the underlying trend of the Nifty remains positive, with potential upside targets around 26,400-26,500 in the near term. Immediate support is placed at 25,800.

LKP Securities' Rupak De said that optimism over progress in the US-China trade deal boosted market sentiment. However, traders are likely to remain cautious ahead of the Fed rate decision and its guidance.

He added that the technical setup remains bullish, with initial support at 25,850. A decisive move above 26,100 could take the Nifty towards 26,300-26,500 in the short term.