Amid elevated crude oil prices and ongoing geopolitical uncertainty that kept macroeconomic risks front and center, the Indian stock market began the session on a mixed note. The Nifty 50 opened higher by 2.7 points at 23,150.85 compared to its previous close, whereas Bank Nifty started the day down 16.55 points at 55,827.45. Meanwhile, the Sensex climbed 120 points to reach 74,849.30.
Broader segments lagged behind, with both the Nifty midcap and smallcap indices closing with minor losses. On Monday, the Indian rupee opened 9 paise higher at Rs. 94.86 against the dollar, up from its prior close of Rs. 94.95.
Foreign institutional investors (FIIs) shifted to net buyers on October 16, acquiring roughly Rs. 1,166 crore in equities. Conversely, domestic institutional investors (DIIs) brought their 45-session buying streak to a close by offloading Rs. 3,661 crore worth of equities.
Sensex Outlook
The weekly chart for the Sensex displayed a long bullish candle, and both daily and intraday charts pointed to a continuing uptrend.
“We believe the short-term market structure remains positive; However, a strategy of buying on dips and selling on gains would be ideal for traders. On the downside, the 20-day SMA near 70,800 and 70,200 could act as key support levels, while 71,700 and 72,300 could act as important resistance zones for bulls. On the other hand, a move below 70,200 could change market sentiment,” said Shrikant Chouhan, Head Equity Research, Kotak Neo.
Nifty 50 Outlook
Building on Thursday’s sharp rally, the Nifty 50 pushed its recovery into a second straight session on Friday as benchmark indices traded higher. Moving forward, the market’s early trades will factor in weekend global developments alongside quarterly financial results from prominent banking institutions.
“Technically, the index is approaching the 23,300 mark, and a decisive breakout above this level could extend the recovery towards 23,500-23,700. On the downside, the 22,700-22,900 zone is now expected to provide support. Given the mixed cues and the busy earnings calendar, we maintain a positive yet cautious stance, with an emphasis on selective stock picking and disciplined trade management,” said Ajit Mishra, SVP Research, Religare Broking.
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Bank Nifty Outlook
Over the last two weeks, Bank Nifty has established a pattern of higher highs and higher lows. The index has climbed past its 20-day simple moving average (SMA) on the daily chart and is currently heading toward its 50-day SMA.
An intermediate barrier is anticipated near the 56,200 level on the upside. Should the index break decisively past this hurdle, it could clear the path toward 56,600. Downward pullbacks are expected to find support around the 55,000-55,200 interval, while the ultimate critical support level is solidly established between 54,450 and 54,500.
