Market Wrap

Domestic equities ended lower on 6 November, with the Nifty sliding below the 25,600 mark and closing down nearly 0.64%, as broad-based selling gripped the markets. Weak global cues weighed heavily on sentiment—European indices tumbled nearly 2%, while U.S. futures hinted at further pressure amid political and geopolitical jitters ahead of the U.S. elections. Realty stocks stood out, holding firm above key support zones, underscoring their relative strength. In contrast, profit booking hit PSU banks and auto stocks after recent rallies, while defensive sectors such as IT and FMCG saw mild buying interest. Persistent FII outflows and uncertainty surrounding the Bihar state elections added to the cautious mood. Crude oil prices also fluctuated sharply amid Middle-East tensions and central bank commentary expectations, amplifying global risk aversion.

What's Ahead

With markets shut on 5 November for Guru Nanak Jayanti, traders will take cues from global market direction, U.S. macro data, and the Fed’s policy remarks. Near-term Nifty support is placed at 25,520 and 25,440, while resistance lies between 25,680–25,760. A sustained break below 25,400 could trigger further downside, while recovery above 25,760 may help stabilize sentiment. Auto and realty sectors could continue to show resilience, but persistent FII selling and geopolitical risks are likely to cap any major upside in the short term. Overall, the market is expected to stay range-bound with a slight bearish bias until global sentiment improves.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 index fell sharply by 165.7 points, or 0.64%, to close at 25,597.65, marking its weakest close in three weeks as selling intensified across sectors. The index was dragged lower by heavyweights such as Power Grid (-3.52%), Maruti (-1.78%), and Larsen & Toubro (-1.25%), while defensive names like SBI (+1.36%), HDFC Life (+0.82%), and Bharti Airtel (+0.62%) provided limited support. Market breadth was decisively negative, with just 8 advances against 42 declines, reflecting broad-based weakness. Technically, Nifty’s failure to sustain above the 25,700 mark indicates a pause in momentum. The RSI, which has slipped toward 50, suggests waning strength, hinting at a possible consolidation or short-term correction. Near-term support lies at 25,362 and 25,224, while resistance is seen at 25,808 and 25,946. A close below 25,400 could accelerate downside momentum, whereas a rebound above 25,800 would help stabilize the trend.

Bank Nifty

The Bank Nifty declined 274.4 points, or 0.47%, to settle at 57,827.05, weighed down by persistent selling in large private lenders. While AUBank (+1.52%) and SBI (+0.52%) managed modest gains, the broader index weakness stemmed from declines in HDFC Bank, ICICI Bank, Axis Bank, and Kotak Bank — all of which saw steady foreign selling. The index’s intraday range between 57,732.95 and 58,119.65 reflected volatility but also a struggle to break higher. The RSI, which has been softening since mid-October, indicates that momentum has cooled after recent highs. With the index consolidating near the crucial 58,000 zone, immediate support levels are at 57,348 and 57,043, while resistance stands at 58,332 and 58,637. Sustained movement below 57,000 could open the door to further downside, though buying interest around this level may lend short-term stability.

Sensex

The Sensex dropped 519.34 points, or 0.6%, to close at 83,459.15, dragged down by losses in IT, FMCG, and auto heavyweights. The index breadth remained weak, with only 5 of 30 constituents advancing. ITC (-1.52%), TCS (-1.35%), and LT (-1.25%) were the top drags, while SBI (+1.36%) and Bharti Airtel (+0.62%) offered mild relief. The index continues to face resistance near the 84,200–84,700 zone, and a failure to hold above the 83,000 mark could invite further selling pressure. Immediate support is placed at 82,717 and 82,249, while resistance is seen at 84,230 and 84,699. The near-term outlook remains cautious, with sentiment likely to stay fragile amid global and domestic uncertainty.

FINNIFTY

The FinNifty index slipped 110.35 points, or 0.4%, to close at 27,195.8, despite a positive advance-decline ratio of 8:12. Gains in ICICI Prudential Life (+1.37%) and SBI (+1.36%) were offset by losses in heavyweights like HDFC Bank (-0.70%) and ICICI Bank (-0.71%). The index remains range-bound, consolidating within a narrow band as traders await clarity on rate and liquidity cues. Immediate support levels are placed at 26,975 and 26,839, while resistance lies at 27,426 and 27,553. Sustaining above the 27,400 mark could reignite buying momentum, but a breach below 26,800 may trigger short-term weakness. Overall, financials remain in a wait-and-watch phase with sector rotation dictating near-term moves.