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Nifty momentum flags caution after rapid October surge
After a sharp October run, Indian technicals flash caution with reversal patterns; traders eye global yields, FX and earnings to confirm trend strength.
Technical analysts highlighted cooling momentum in Indian equities after a swift October rally added more than 1,500 points to the benchmark from its recent trough. Shooting-star formations on key indices signal near-term vulnerability if profit-taking accelerates. While domestic flows and festive demand remain constructive, traders are eyeing global yields, FX moves and earnings guidance for confirmation. Risk managers recommend tighter stops and selective exposure in banks and capital goods, while monitoring breadth and volume patterns for signs of consolidation.