Market Wrap

Indian equity markets ended the previous week on a positive note, with the Nifty 50 recovering nearly all the losses recorded in the preceding week. After a slightly weaker opening, buying interest emerged at lower levels, helping the benchmark extend its recovery following a brief consolidation phase. The Nifty closed at 23,053, gaining approximately 2% for the week, while the improving technical setup provided some near-term support to investor sentiment.

The IT sector continued to outperform, with the sectoral index rising nearly 2%, supported by improving earnings sentiment and continued buying interest in technology stocks. However, global markets remained mixed, with Asian equities facing selling pressure, European markets maintaining their upward momentum and U.S. equities trading relatively subdued.

Despite the recovery, concerns surrounding elevated crude oil prices, global monetary policy uncertainty and institutional flows continue to influence market sentiment. The recent rebound has improved the near-term outlook, but sustained buying participation will be necessary to establish a stronger recovery.

What's Ahead

Indian markets are likely to remain sensitive to global developments, crude oil movements and the upcoming earnings calendar as November begins. Crude oil prices above $117 per barrel remain a significant concern, given their potential to increase India's import bill, intensify inflationary pressures and weigh on the rupee. Sectors such as aviation, paints, chemicals and oil marketing companies could remain particularly sensitive to elevated energy costs.

Global sentiment may also be influenced by Wall Street's sharp sell-off on Friday, particularly the 2.9% decline in the Nasdaq amid concerns over elevated AI-related spending and technology valuations. The Federal Reserve's decision to maintain interest rates at 3.75%–4%, while highlighting persistent inflation concerns, keeps uncertainty surrounding global monetary policy elevated.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 advanced 116.35 points, or 0.51%, to close at 23,053.10, extending its recovery for a second consecutive session amid broad-based buying. The index touched an intraday high of 23,118.10, while gains in IT, aviation, retail and healthcare stocks supported the upward momentum. Market breadth remained positive, with 29 stocks advancing against 21 declining, and the RSI moved above 50, indicating improving bullish momentum. Immediate support is placed at 22,844 and 22,714, while resistance lies at 23,262 and 23,392. Sustaining above 23,000 could help the index extend its recovery toward the first resistance level, while a break below 22,844 may trigger renewed selling pressure.

BankNifty

The NIFTY BANK declined 222.70 points, or 0.41%, to close at 54,686.95, underperforming the broader market as selling in several banking heavyweights outweighed gains in select private-sector lenders. The index recovered during the middle of the session but faced renewed selling toward the close, while market breadth remained decisively negative, with 11 stocks declining against only 3 advancing. The RSI fell below 50, signalling weakening momentum and a cautious near-term outlook. Immediate support is placed at 54,111 and 53,755, while resistance stands at 55,263 and 55,619. A sustained move above 55,263 would be required to improve the short-term setup, while a break below 54,111 could expose the index to further downside.

NIFTY FINANCIAL SERVICES

The NIFTY Financial Services index was largely unchanged, gaining just 7.65 points, or 0.03%, to close at 24,712.20, as gains in leading banking and insurance stocks offset weakness across non-banking financial companies. Market breadth remained negative, with 12 stocks declining against 8 advancing, indicating limited participation in the marginal recovery. Immediate support is positioned at 24,403 and 24,212, while resistance is placed at 25,021 and 25,212. The index remains in a consolidation phase, with a sustained move above 25,021 needed to strengthen the recovery, while a break below 24,403 could increase downside pressure.

Sensex

The BSE SENSEX gained 308.49 points, or 0.42%, to close at 74,459.53, supported by broad-based buying in IT, aviation, power and banking stocks. The index benefited from strong advances in Trent, IndiGo and Infosys, while gains in select technology and power stocks helped offset weakness in SBI, M&M and UltraTech Cement. Market breadth remained favourable, with 18 stocks advancing against 12 declining, indicating a moderately positive market setup. Immediate support is placed at 73,711 and 73,247, while resistance stands at 75,209 and 75,672. Holding above 73,711 could help sustain the recovery, while a decisive move above 75,209 would strengthen the bullish outlook and open the way toward the next resistance zone.