Market Wrap

Domestic equities extended their losing streak on October 31, 2025, as the Nifty 50 opened lower amid weak global cues and failed to sustain intraday recoveries, closing 0.68% down just below the 25,900 mark. The broader market breadth turned decisively negative, reflecting continued profit booking across most sectors. Realty stocks stood out as a rare pocket of strength, buoyed by resilient housing demand and optimism surrounding festive-season property sales. On the global front, sentiment remained subdued after Fed Chair Jerome Powell’s slightly hawkish remarks signaled a cautious stance on inflation, leading to mixed closes in the US and declines across Asia and Europe. Meanwhile, crude prices slipped below $84 a barrel as easing geopolitical risks and higher US inventories offered some inflationary relief for oil-importing economies like India. Domestically, reports of stronger-than-expected October GST collections added a positive undertone, highlighting sustained fiscal and economic resilience heading into Q4 FY25.

What's Ahead

Markets are expected to remain volatile ahead of the US Federal Reserve’s policy statement later tonight and India’s manufacturing PMI release tomorrow. A dovish shift in the Fed’s tone or upbeat domestic PMI data could spark short-covering and drive a rebound toward the 25,900–26,000 resistance zone. Conversely, any signs of a slowing global economy or sustained hawkishness from the Fed may keep investor sentiment cautious, prompting consolidation or further downside pressure in the near term.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 index extended its decline, slipping 176.05 points or 0.68% to close at 25,877.85, weighed down by selling in heavyweights such as HDFC Bank, ICICI Bank, and Infosys. Despite marginal strength in Coal India and Larsen & Toubro, the broader market breadth was decisively negative, with 40 of the 50 constituents ending in the red. The session witnessed weakness in pharmaceuticals after Dr. Reddy’s received a non-compliance notice from Canadian authorities, dragging sector peers lower. The index oscillated between 26,032.05 and 25,845.25 during the day but failed to sustain early gains. The RSI slipped closer to 60, signaling waning bullish momentum and potential consolidation ahead. Near-term support levels are placed at 25,632 and 25,479, while resistance is seen at 26,124 and 26,277.

Bank Nifty

The NIFTY BANK index dropped 354.15 points or 0.61% to close at 58,031.10, extending its weak streak as heavyweights HDFC Bank and ICICI Bank continued to drag the sector lower. Market sentiment remained firmly bearish, with 11 of the 12 constituents ending in the red only Canara Bank managed to buck the trend with a strong 3.20% gain. Despite a brief intraday high of 58,331.2, the index struggled to maintain upward momentum, slipping toward the 58,000 mark by the close. RSI levels around 60 indicate that while the broader structure remains intact, near-term momentum has softened. Key support levels are seen at 57,459 and 57,105, with resistance at 58,603 and 58,957.

Sensex

The SENSEX declined sharply by 592.67 points, or 0.7%, to close at 84,404.46, weighed down by weakness in key constituents such as HDFC Bank, ICICI Bank, and Reliance Industries. IT majors Infosys and Tech Mahindra, along with telecom heavyweight Bharti Airtel, also saw notable selling pressure, amplifying the market’s downside. Only seven stocks managed to close in the green, led by Larsen & Toubro, Bharat Electronics, and UltraTech Cement. The index’s inability to hold intraday gains suggests persistent selling pressure across large-caps. Near-term support lies at 83,577 and 83,065, while resistance is positioned at 85,232 and 85,744.

FINNIFTY

The NIFTY FINANCIAL SERVICES index dropped 211.65 points, or 0.77%, to close at 27,376.00, marking another weak session for financial counters. Selling in key heavyweights such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank dragged the index lower, while only two constituents Cholamandalam Finance and Muthoot Finance managed marginal gains. Market breadth was extremely negative, with 18 of 20 stocks closing in the red, led by steep declines in LIC Housing Finance, SBI Cards, and HDFC Life. The technical setup indicates weakening momentum, with near-term support at 27,120 and 26,962, while resistance is capped at 27,632 and 27,790.