Market Wrap

Indian equities extended their post-earnings rally on October 17, with the Nifty 50 closing firmly higher at 25,585, up over 1%, marking a strong continuation of last week’s momentum. The day began with a gap-up opening, followed by a steady, low-volatility advance that showcased bullish conviction. Gains were broad-based, led by FMCG, auto, private banks, realty, and financial stocks, while metals lagged behind. Midcaps and smallcaps also participated, underscoring healthy market breadth.

Among key movers, Cipla, SBI, Axis Bank, Maruti, and Bajaj Auto led the charge, while Tata Steel, TCS, JSW Steel, Tech Mahindra, and Shriram Finance faced mild profit booking. The ongoing rally appears partly earnings-driven and partly momentum-led, though market participants should stay wary of FOMO-driven trades. Technically, immediate support lies at 25,520 and 25,440, while resistance levels are seen at 25,680, 25,760, and 25,840.

What's Ahead

The near-term market trajectory hinges on the next wave of Q2 earnings, particularly from large caps beats may trigger fresh sectoral rallies, while misses could prompt rotations. Global cues remain equally crucial: U.S. economic data, Fed commentary, and crude oil trends will influence sentiment, FII flows, and the rupee. Traders should stay selective, preferring quality earnings winners and defensives on dips, while investors may treat current strength as an opportunity to accumulate fundamentally solid stocks. However, momentum-chasing in overextended midcaps should be avoided as volatility may rise ahead of key results and macro data.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 index surged 261.75 points (1.03%) to close at 25,585.3, marking a strong breakout led by broad-based buying across consumer staples, financials, and industrials. Out of 50 constituents, 45 ended in the green, signaling renewed risk appetite and improving sentiment. Gains in Nestle India, Tata Consumer Products, and Kotak Mahindra Bank propelled the index, while select laggards like Infosys and HDFC Life capped upside momentum. The Nifty formed a bullish candle on the daily chart, with a strong close near its intraday high of 25,625, indicating sustained buying interest. The RSI above 60 confirms strengthening momentum, suggesting the trend remains positive. Near-term support lies at 25,340 and 25,189, while resistance is seen at 25,830 and 25,982 a move above which could open the door to 26,200 levels.

Bank Nifty

The Bank Nifty jumped 622.65 points (1.1%) to close at 57,422.55, continuing its strong uptrend with leadership from heavyweights HDFC Bank, ICICI Bank, Kotak Bank, and Axis Bank. Despite the index’s sharp gain, market breadth within the banking space remained mixed, with 7 stocks declining and 5 advancing, highlighting selective buying. The index traded in a tight range before closing near the upper end, reflecting strong intraday recovery. With the RSI above 70, the index has entered overbought territory, indicating potential for mild profit-taking or consolidation near current levels. Immediate support is placed at 56,644 and 56,162, while resistance lies at 58,201 and 58,683. Sustained momentum above these levels could lead to a retest of 59,000 in the near term.

Sensex

The SENSEX rallied 862.23 points (1.04%) to close at 83,467.66, marking its best one-day performance in over two weeks. The advance was powered by Kotak Bank, Titan, HDFC Bank, and ICICI Bank, with 28 of 30 constituents ending higher underscoring broad-based strength. The index’s technical structure reflects strong bullish undertones as it decisively closed above the 83,400 zone, turning this level into fresh support. The RSI trend remains upward, reinforcing positive bias, though minor consolidation cannot be ruled out after recent gains. Immediate support levels are at 82,653 and 82,150, while resistance is capped at 84,282 and 84,786. A breakout above 84,800 could push the index toward new record highs in the short term.

FINNIFTY

The NIFTY Financial Services index advanced 309.4 points (1.14%) to settle at 27,381.2, with major contributors including HDFC Bank, ICICI Bank, Kotak Bank, and Axis Bank, which collectively lifted sentiment across the financial space. Despite some weakness in insurance and NBFC names such as HDFC Life, Shriram Finance, and Cholamandalam Finance, the overall setup remains constructive. The index has been forming higher highs and higher lows for three consecutive sessions, signaling trend strength. The RSI’s sustained uptick indicates buyers remain firmly in control. Key support levels are at 27,017 and 26,792, while resistance is placed at 27,745 and 27,971. A close above 27,971 could open the next upside leg toward 28,200–28,400.