# Nifty Rally Faces Crucial Test

> Nifty gains 3% as analysts predict recovery but must clear key resistance levels for further strength.
- Title: Nifty Rally Faces Crucial Test · The Economic Times | Shortify
- Summary: Nifty gains 3% as analysts predict recovery but must clear key resistance levels for further strength. Nifty has gained 3% last week, forming a higher-top…
- Keywords: nifty, resistance levels, analysts, market recovery, technical analysis, 23400, 23500, 22786, 23000, 20-day average, bank nifty, 56000
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/stocks/news/nifty-gains-3-as-analysts-predict-recovery-key-resistance-levels-ahead/articleshow/135037107.cms
- Author: ET Bureau
- Published: 2026-10-19T00:14:00+00:00
- Read time: 1 min
- Topics: nifty, resistance levels, analysts, market recovery, technical analysis, 23400, 23500, 22786, 23000, 20-day average, bank nifty, 56000
## Nifty Gains 3% Last Week
Nifty gained 3% last week, boosting sentiment and raising hopes of a recovery.
## Higher-Top Structure Formed
Nifty has formed a higher-top, higher-bottom structure, reclaimed its 20-day average and sustained above 23,000.
## Bullish Technical Indicators
A Morning Star pattern, rising RSI and support at 22,786 keep the outlook bullish.
## Next Upside Zone
23,400, 23,500 as the next upside zone for Nifty.
## Bank Nifty Approaches Resistance
Bank Nifty is approaching the 56,000, 56,100 band, which previously acted as support and is now expected to pose resistance.
## Bank Nifty Strategy
Sell on rallies towards 56,100, 56,200 with stop loss at 56,600 and targets at 55,500, 55,400.
## Top Stocks for the Week
Coforge: Buy | CMP: Rs 1,951 | Target: Rs 2,070 | Stop loss: Rs 1,890.
## Nifty Strategy for Recovery
Buy on dips towards 22,800 with targets at 23,475, 23,600.
## Key takeaway

Nifty has gained 3% last week, forming a higher-top structure and reclaiming its 20-day average, with analysts cautioning it must clear resistance levels at 23,400, 23,500 for sustained recovery.