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Below the Comment on Market Closing Oct 27, 2026 by Ajit Mishra, SVP – research, Religare Broking

"Markets remained volatile on the monthly expiry day, ending largely unchanged as mixed cues kept participants cautious. Following a marginal decline, the Nifty oscillated within a narrow range for most of the session before settling at 22,749.75, while the Sensex closed at 73,598.67. The lack of a clear directional trend reflects continued uncertainty following the recent market correction.

On the sectoral front, performance remained mixed, with realty, pharma and auto stocks emerging among the outperformers, while banking, financials and IT remained under pressure. In contrast, broader markets outperformed the frontline indices, with the midcap and smallcap indices gaining 1% and 2.7%, respectively. The stronger performance of broader-market stocks indicates selective buying interest, although sustained participation will be essential to establish a more durable recovery.

Among the key macro factors, Brent crude remained elevated near $115 per barrel, close to a six-month high, amid renewed concerns over energy supply disruptions following attacks on Saudi infrastructure. Additionally, caution ahead of the US Federal Reserve’s policy outcome, scheduled for Wednesday, capped the upside and kept investors on the sidelines.

Despite the relative resilience in benchmark indices, the lack of meaningful follow-through buying suggests that investor confidence remains fragile. Going forward, a decisive move above the 20-DEMA, currently around 22,825, would strengthen the prospects of further recovery towards 23,100-23,300 zone. Failure to cross this hurdle, however, could cause the recent rebound to lose momentum. Traders should remain selective, avoid aggressive leverage and maintain strict risk management amid elevated event risks. Investors should continue to focus on fundamentally strong companies with resilient earnings and reasonable valuations, favouring staggered accumulation over indiscriminate buying until the market establishes a more sustainable recovery."

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