Market Wrap

Indian equity markets extended their winning streak to a fourth consecutive session on Tuesday, November 3, with benchmark indices posting strong gains and closing at their highest levels in nearly two months. The Nifty 50 advanced 1.58% to 23,810.85, while the Sensex surged 1.62% to 76,917.85. Both indices ended at their respective session highs, taking their cumulative gains to approximately 5% over the four-session rally.

Buying in heavyweight financial stocks remained a key driver of the advance. HDFC Bank gained 3.6%, while ICICI Bank rose 2.7%, supporting the broader market. Financials and private banks were among the leading sectoral performers, while FMCG, Realty and Private Bank indices also recorded strong gains. The Nifty Midcap 100 advanced 1.06%, while the Nifty Smallcap 100 gained 0.31%, indicating broader participation in the recovery.

Market breadth remained positive, with 39 Nifty 50 constituents advancing against 10 declining and one unchanged. BSE, Nestlé India, Tata Consumer Products, Asian Paints and Bharti Airtel were among the leading gainers, while Power Grid, SBI, ONGC, Adani Enterprises and Tata Steel faced selling pressure. However, India VIX moved higher, suggesting that some caution persisted despite the strong benchmark performance.

Corporate earnings also supported sentiment. Marico attracted buying interest after reporting a 31% year-on-year increase in consolidated net profit to ₹550 crore for the September quarter, while revenue rose 13% to ₹3,897 crore. Foreign portfolio investors also showed signs of renewed participation, having been net buyers in four of the previous five sessions. Provisional exchange data showed FII net buying of ₹3,114.68 crore on November 2.

Overall, improving domestic sentiment, strong financial-sector performance, corporate earnings and lower crude oil prices in the previous session supported the rally. However, the rise in India VIX and mixed global cues indicate that volatility remains a concern as the market approaches key resistance levels.

What's Ahead

Indian equities are likely to enter Wednesday's session with a cautiously positive bias, supported by the recent recovery and renewed foreign investor participation. The Nifty 50 is approaching the important 24,000 psychological level, with immediate resistance around 23,900, followed by 24,000. A sustained move above this zone could strengthen bullish momentum, while the 23,600–23,500 region is expected to provide near-term support. A break below this support zone could invite profit-booking after the sharp four-session rally.

For Bank Nifty, the 56,000–56,100 range remains the immediate resistance zone, while 55,100–55,000 is the key support area. A decisive move above 56,100 could open the way toward 56,600, with banking stocks and heavyweight financial constituents likely to remain important drivers of market direction.

Global cues will remain important as investors monitor the US midterm elections, developments in technology-sector valuations and broader risk sentiment. At the information cut-off, the US election process was still underway, and the outcome had not been established. Any developments affecting US economic and trade policy could influence global markets and emerging-market capital flows.

Crude oil prices will also remain a key variable. Brent crude rebounded on Tuesday after falling more than 7% in the previous session, while geopolitical uncertainty involving the United States and Iran continued to influence energy prices. Sustained increases in crude could raise concerns over India's import bill, inflation and oil-sensitive sectors.

Domestically, investors will track September-quarter earnings from companies including Apollo Hospitals, BSE, Cummins India, Dabur India, Exide Industries and Zydus Lifesciences. Their results and management commentary could trigger stock-specific movements. Global monetary-policy developments, including the Reserve Bank of Australia's latest rate hike, will also remain relevant for currency and interest-rate expectations.

Overall, the market outlook remains cautiously positive, supported by improving domestic momentum, renewed FII participation and encouraging earnings. However, the Nifty's ability to sustain above 23,900–24,000, movements in crude oil, global market sentiment and ongoing earnings announcements will determine whether the rally extends or gives way to intermittent profit-booking.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 advanced 387.70 points, or 1.68%, to close at 23,440.80, extending its recovery on strong buying across oil and gas, metals and financial stocks. The index opened at 23,222.30 and closed at its intraday high, indicating sustained buying momentum throughout the session. Market breadth remained positive, with 38 stocks advancing against 12 declining, while Reliance Industries led the gains following strong Q2 earnings. The RSI moved closer to 60, signalling strengthening bullish momentum. Immediate support is placed at 23,169 and 23,001, while resistance stands at 23,713 and 23,881. A sustained move above 23,713 could extend the recovery, while a break below 23,169 may trigger profit-booking.

BankNifty

The NIFTY BANK gained 315.25 points, or 0.58%, to close at 55,002.20, supported by buying across public and private sector banking stocks. The index opened positively and maintained its upward momentum, closing near its intraday high of 55,046.35. Market breadth remained positive, with 9 constituents advancing against 4 declining and one unchanged. The RSI moved closer to 50, indicating improving momentum and a gradual recovery in buying interest. Immediate support is placed at 54,427 and 54,070, while resistance lies at 55,578 and 55,934. Holding above 54,427 could sustain the positive bias, while a decisive move above 55,578 would strengthen the bullish outlook.

NIFTY FINANCIAL SERVICES

The NIFTY Financial Services index advanced 186.85 points, or 0.76%, to close at 24,899.05, supported by broad-based buying across lending, banking and financial services stocks. Shriram Finance, Muthoot Finance and Jio Financial Services led the gains, while 13 constituents advanced against 7 declining, reflecting positive market participation. The index continues to show improving momentum following the recent recovery. Immediate support is placed at 24,590 and 24,399, while resistance stands at 25,208 and 25,399. Sustaining above 24,590 could help the index maintain its upward bias, while a sustained move above 25,208 would indicate stronger bullish momentum.

Sensex

The BSE SENSEX surged 1,233.25 points, or 1.66%, to close at 75,692.78, supported by strong buying in oil and gas, metals and banking stocks. The index recorded broad-based gains, with Reliance Industries leading the advance following strong Q2 earnings, while Tata Steel, UltraTech Cement and SBI also contributed significantly. Market breadth remained positive, with 23 stocks advancing against 7 declining, indicating strong participation in the recovery. Immediate support is positioned at 74,751 and 74,169, while resistance lies at 76,634 and 77,217. Holding above 74,751 could sustain the recovery, while a decisive move beyond 76,634 would strengthen the bullish setup and open the way toward the next resistance zone.