Market Wrap

Indian equity markets began November on a strong note, extending their recovery for a third consecutive session amid robust corporate earnings, easing crude oil prices and broad-based buying. The NIFTY 50 advanced 387.70 points, or 1.68%, to close at 23,440.80, while the SENSEX gained 1,233.25 points, or 1.66%, to settle at 75,692.78, marking its highest closing level in nearly two months.

The rally was led by Reliance Industries, which surged 11.6% following better-than-expected September-quarter earnings and contributed approximately half of the NIFTY's overall gains. Market participation remained positive, with 13 of the 16 major sectoral indices advancing. Energy, metal, automobile, consumer durables and PSU bank stocks attracted buying interest, while IT stocks remained relatively weak following their strong performance in October.

The broader market also participated in the recovery, with the NIFTY Midcap 100 rising 1.19% and the NIFTY Smallcap 100 gaining 0.71%. However, India VIX moved higher, indicating that near-term volatility remains elevated despite the benchmark rally.

Globally, Asian markets ended mixed, with gains in South Korea, China and Hong Kong offset by losses in Japan, Australia and Singapore. Easing crude oil prices and optimism surrounding diplomatic discussions on the Iran conflict provided some support to investor sentiment.

What's Ahead

Indian markets are likely to remain sensitive to global developments, crude oil prices, corporate earnings and institutional activity during Tuesday's session. Following Monday's strong recovery, the NIFTY's ability to sustain above 23,400 will be important for maintaining positive momentum. The 23,400–23,200 zone is emerging as a key near-term support area, while 23,500 remains an immediate psychological resistance level. A sustained move above this level could strengthen bullish momentum, whereas a failure to hold support may invite profit booking.

Crude oil remains a critical variable, with Brent falling nearly 4% on Monday amid renewed diplomatic discussions involving Iran and Qatar. Lower oil prices could provide relief to India's import bill, inflation outlook and oil-sensitive sectors, although geopolitical developments and potential supply disruptions remain important risks.

Domestically, India's October Manufacturing PMI eased to 54.7 from 55.1 in September, indicating continued expansion, albeit at a slower pace. Strong export demand and a six-month high in new export orders provided some support. Investors will also monitor the September-quarter earnings calendar, particularly Bajaj Finserv and Bajaj Holdings & Investment, which are scheduled to consider their results on November 3.

On the global front, the US midterm elections will remain in focus, with potential implications for global risk appetite, currency movements and foreign portfolio flows. The Reserve Bank of Australia's monetary policy decision, scheduled for 9:00 AM IST, will also be relevant for regional sentiment, while Japan's equity market will remain closed for Culture Day.

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. The index traded between 22,905.10 and 23,118.10 before closing near the upper end of its intraday range, supported by broad-based buying across IT, aviation, retail, healthcare and power stocks. Market breadth remained positive, with 29 stocks advancing against 21 declining, while the RSI moving above 50 indicates improving bullish momentum. Immediate support is placed at 22,844 and 22,714, while resistance stands at 23,262 and 23,392. Holding above 22,844 could help sustain the recovery, whereas a decisive move above 23,262 would strengthen the bullish setup and open the possibility of further upside.

BankNifty

The NIFTY BANK declined 222.70 points, or 0.41%, to close at 54,686.95, as persistent selling across several banking heavyweights outweighed gains in select private-sector lenders. The index recovered during the middle of the session but faced renewed selling pressure toward the close, with 11 constituents declining against just 3 advancing. The RSI falling below 50 signals weakening momentum, indicating that the banking index is lagging the broader market recovery. 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 near-term outlook, 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 across IT, aviation, power and select banking stocks. The index benefited from strong advances in Trent, Indigo and Infosys, while losses in SBI, M&M and UltraTech Cement limited the upside. Market breadth remained favourable, with 18 stocks advancing against 12 declining, indicating a constructive underlying trend. 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 potentially extend the advance toward the next resistance zone.