Market Wrap

Indian equities extended their winning streak today as strong FII short-covering and renewed buying in index heavyweights powered a steady rally. The Nifty 50 closed just above 25,700, sustaining its weekly uptrend with solid participation from large-cap stocks, even as mid- and small-caps lagged. The Bank Nifty continued to steal the spotlight, surging to a fresh all-time high near 57,830, led by robust moves in private banks amid upbeat management commentary and improved investor appetite.

Defensive sectors like FMCG and paints also outperformed, supported by softer commodity prices and easing crude levels, while broader market participation remained moderate. The key intra-day zones support at 25,600 / 25,520 and resistance near 25,770 / 25,840 / 25,920 were actively respected, reflecting disciplined rotation among traders. October’s overall tone remains constructive, with Nifty up 4.46% (1,098 pts) and Bank Nifty up 5.63% (3,077 pts) month-to-date. Heavy FII inflows, anticipation around Reliance’s results, and pre-positioning for the Muhurat trading session (21 Oct, 1:45–2:45 PM) ahead of the exchange holiday on 22 Oct lent a festive and optimistic tone to markets.

What's Ahead

All eyes now turn to corporate earnings, with heavyweights HDFC Bank, ICICI Bank, and Reliance Industries set to report their results — these will likely dictate whether the ongoing rally can broaden beyond large caps. Sustained FII flows and resilient earnings could propel the Nifty toward 25,920, while any earnings miss or dip in global risk sentiment could trigger a retest of supports at 25,600 / 25,520. Traders should closely monitor foreign fund flows, crude oil trends, and U.S. macro data for cues on liquidity and risk appetite, as these will define near-term direction ahead of the festive week.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 surged 124.55 points, or 0.49%, to close at 25,709.85, driven by broad-based buying in banking, telecom, and consumer names. The index saw 27 advances against 23 declines, reflecting a mildly positive breadth. Gains in ICICI Bank, Reliance Industries, and HDFC Bank provided strong index support, while Asian Paints (+4.07%), M&M (+2.43%), and Bharti Airtel (+2.27%) stood out among the top performers. However, weakness in IT majors such as Wipro, Infosys, and HCL Tech capped overall upside after Wipro’s cautious guidance dented sector sentiment. The index opened at 25,546.85, briefly tested 25,508.6 on the downside, and then rallied to a day’s high of 25,781.5 before closing near the upper end of the range — a sign of persistent buying interest. With the RSI nearing 70, the Nifty is entering an overbought zone, hinting at possible near-term consolidation. Immediate support lies at 25,428 / 25,254, while resistance is seen at 25,992 / 26,166.

Bank Nifty

The Bank Nifty extended its strong uptrend, rallying 290.8 points (0.51%) to close at 57,713.35, marking another record-high close. The advance was led by ICICI Bank (+1.36%), HDFC Bank (+0.82%), and IndusInd Bank (+1.56%), which collectively drove most of the index’s gains. Broader participation was moderate, with 7 of the 12 constituents closing higher. PSU banks such as PNB (-2.08%) and Canara Bank (-1.48%) remained laggards, but private sector strength kept the index well-bid. The index oscillated between 57,238.65 and 57,830.2, before ending just below its intraday high — a sign of firm momentum. With RSI hovering near 70, the index is nearing overbought territory, suggesting limited upside in the very short term. Support levels are placed at 56,863 / 56,337, while resistance levels are seen at 58,564 / 59,090.

Sensex

The Sensex climbed 484.53 points (+0.58%) to close at 83,952.19, supported by strong action in defensives and domestic cyclicals. Top gainers included Asian Paints (+4.07%), M&M (+2.43%), and Bharti Airtel (+2.27%), while IT heavyweights like Infosys, HCL Tech, and Tech Mahindra dragged the sector lower. Market breadth was narrowly positive, with 16 advances against 14 declines, reflecting selective participation. The index’s higher close above 83,900 reaffirms its bullish undertone, but traders should remain cautious as it approaches key resistance levels. Immediate support rests at 83,007 / 82,421, while resistance is placed at 84,898 / 85,483.

FINNIFTY

The FinNifty index rose 157.4 points (0.57%) to end at 27,538.6, aided by continued strength in leading banks and select insurance names. ICICI Bank and HDFC Bank provided significant lift, while Muthoot Finance (+2.02%) and ICICI Prudential (+1.49%) also added momentum. The index, however, faced pressure from Cholamandalam Finance and HDFC AMC, keeping overall breadth evenly split (10 advances, 10 declines). The structure remains constructive as long as the index sustains above 27,135. Support levels are at 27,135 / 26,885, while resistance zones are pegged at 27,942 / 28,192.