Market Wrap

Indian equity markets extended their winning streak to six consecutive sessions on Thursday, November 5, recording their strongest single-session advance in approximately seven months. The Nifty 50 surged 576 points, or 2.40%, to close at 24,536.60, while the Sensex advanced 2,008.61 points, or 2.60%, to settle at 79,310.01. Both benchmark indices ended near their respective session highs, reflecting strong buying interest across heavyweight stocks.

The rally was supported by a sharp decline in crude oil prices during the previous session, positive global sentiment following the US midterm election outcome, rupee appreciation and broad-based domestic buying. The Nifty's move above the psychologically important 24,000 level further strengthened near-term sentiment.

Broader markets also participated in the advance, although they underperformed the frontline indices. The Nifty Midcap 100 gained 1.87%, while the Nifty Smallcap 100 advanced 0.56%. Market breadth remained firmly positive, with 2,547 stocks advancing against 1,084 declining on the NSE.

Auto and financial stocks led the sectoral rally, with the Nifty Auto index rising 4.14%, followed by Financial Services at approximately 4%, Realty at 3.52% and Bank at 3.33%. The IT index also gained 2.42%, while Energy and Media were the notable laggards.

Institutional activity provided additional support, with provisional figures for Wednesday, November 4, showing FII/FPI net buying of ₹7,284.03 crore and DII net selling of ₹3,712.23 crore. These figures relate to Wednesday's trading and should not be interpreted as Thursday's flows.

Overall, the market witnessed a significant improvement in investor confidence, supported by broad-based buying and positive global cues. However, the sharp pace of the recent advance increases the possibility of intermittent profit booking.

What's Ahead

Indian equity markets are likely to focus on the sustainability of the recent rally, with the Nifty's ability to hold above 24,500 becoming an important near-term indicator. After six consecutive sessions of gains, some consolidation would be normal, while continued participation from banking, financial services, automobile and other heavyweight stocks will remain essential for further upside.

Crude oil prices will remain a key variable for domestic sentiment. Brent crude recovered 3.11% to $97.56 per barrel on Thursday, while US WTI gained 1.96% to $89.85, following a sharp decline in the previous session. The rebound reflects continuing uncertainty surrounding the geopolitical outlook and diplomatic developments involving Iran. A sustained rise in crude could renew concerns over India's import bill, inflation and pressure on oil-sensitive sectors.

Global markets will also remain in focus following the strong US equity rally after the midterm election outcome. However, Thursday's sharply mixed Asian market performance, particularly the steep declines in South Korea and Taiwan, highlights continuing volatility in global technology stocks.

Investors should closely monitor crude oil prices, institutional flows, the rupee, global technology stocks and developments in West Asia. While the near-term outlook remains constructive following the strong recovery, the market's ability to sustain its upward momentum will depend on continued domestic buying and supportive global developments.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 advanced 149.75 points, or 0.63%, to close at 23,960.60, extending its upward momentum amid broad-based buying across defence, financial services, consumer and automobile stocks. The index opened at 23,742.25, touched an intraday low of 23,696.15 and closed at its session high, indicating sustained buying interest. Market breadth remained positive, with 36 stocks advancing against 14 declining, while the RSI remained above 60, signalling sustained bullish momentum. Immediate support is placed at 23,586 and 23,354, while resistance levels stand at 24,336 and 24,567. A sustained move above 24,336 could extend the rally, whereas a decline below 23,586 may trigger some profit booking.

BankNifty

The NIFTY BANK gained 373.55 points, or 0.67%, to close at 55,913.60, supported by broad-based buying across banking constituents. The index recovered from its intraday low of 55,294.50 and finished near its session high of 55,946.85, reflecting improving buying momentum. Market breadth was positive, with 11 constituents advancing against 3 declining, while the RSI moved above 50, indicating a shift towards positive momentum. Immediate support is positioned at 55,338 and 54,982, while resistance lies at 56,489 and 56,845. Holding above 55,338 could sustain the recovery, while a decisive breakout above 56,489 would strengthen the bullish outlook.

NIFTY FINANCIAL SERVICES

The NIFTY Financial Services index advanced 222.70 points, or 0.88%, to close at 25,580.60, led by strong gains across NBFCs, lending and insurance stocks. Muthoot Finance and Max Financial Services were among the leading performers, while 16 constituents advanced against just 4 declining, indicating strong participation in the rally. The positive market breadth and strength in financial stocks suggest that the near-term trend remains constructive. Immediate support is placed at 25,232 and 25,016, while resistance levels stand at 25,930 and 26,146. Sustaining above 25,232 could keep the upward momentum intact, whereas a breakout above 25,930 may open the way for further gains.

Sensex

The BSE SENSEX gained 383.55 points, or 0.50%, to close at 77,301.40, supported by buying across defence, consumer, automobile and financial stocks. BEL and Titan led the advances, while gains in Bajaj Finance, Indigo and HDFC Bank provided additional support. Market breadth remained favourable, with 20 stocks advancing against 9 declining and 1 unchanged, although losses in IT stocks limited the overall upside. Immediate support is placed at 76,135 and 75,413, while resistance levels stand at 78,468 and 79,190. Holding above 76,135 could help preserve the recovery, while a sustained move above 78,468 would strengthen the bullish setup and potentially extend the rally toward the next resistance zone.