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Market Update

Nifty : 25,077.65 +183.40 (+0.74%)

Sensex : 81,790.12 +582.95 (+0.72%)

* Equity benchmark indices extended their winning streak for the third consecutive session, with the Nifty reclaiming the 25,000 mark and the Sensex advancing nearly 600 points, driven by strong gains in IT, capital market, and banking & financial stocks. Market sentiment was lifted by a global rally and optimism over robust Q2 corporate earnings following impressive business updates.

* Further support came from the RBI’s upward revision of India’s FY26 GDP growth forecast to 6.8% (from 6.5%), strong September auto sales, and healthy GST collections. The Sensex closed 583 points (0.70%) higher at 81,790, while the Nifty rose 180 points (0.72%) to 25,074. Over the past three sessions, the Sensex has gained more than 1,500 points, and the Nifty has added nearly 500 points, reclaiming the key 25,000 level.

* Beaten-down tech stocks saw renewed buying ahead of TCS’s Q2 results on October 9, with the Nifty IT index climbing 2%, led by TCS, LTI Mindtree, Tech Mahindra, Infosys, Mphasis, and HCL Tech, which gained between 2–4%.

* Capital market stocks also rallied after the NSE announced revisions to the market lot size of several derivatives contracts for key indices. BSE surged 6% to Rs.2,217, while CDSL, IIFL Finance, and Angel One rose about 2% each.

* Banking and NBFC shares advanced on the back of strong quarterly business updates, with Kotak Bank, HDFC Bank, IDFC First Bank, and AU Small Finance Bank gaining up to 3%.

* Globally, U.S. markets rose 0.5% on Friday amid expectations of a Fed rate cut, while Asian markets were mixed today. Japan’s Nikkei index jumped 5% to a record high on hopes that the new Prime Minister will announce a stimulus package.

Technical Outlook:

* Nifty index opened positive and exhibited persistent buying interest throughout the day and surpassed the psychological 25k barrier to inch towards 25100 levels. It has moved by around 500 points in the last three sessions and sustained strength confirmed the bullish undertone.

* It has formed a bullish candle on the daily frame and has been making higher highs – higher lows from the last three sessions. Now it has to hold above 25000 zones for an up move towards 25200 then 25350 zones while supports can be seen at 24900 then 24850 zones.

Derivative Outlook:

* Nifty future closed positive with gains of 0.70% at 25181 levels. Positive setup seen in Fortis, Nykaa, Delhivery, BSE, Paytm, Shriram Finance, Siemens, AU Bank, SBI Card and Apollo Hospital while weakness in IREDA, SAIL, Dmart, HFCL, Lupin, Crompton, Torrent Power, Adani Ports, HUDCO and Biocon.

* On option front, Maximum Call OI is at 25100 then 25200 strike while Maximum Put OI is at 25000 then 24900 strike. Call writing is seen at 25100 then 25200 strike while Put writing is seen at 25000 then 25050 strike. Option data suggests a broader trading range in between 24600 to 25600 zones while an immediate range between 24900 to 25300 levels.

Global Market Update

* Asian Market - Asian stocks witnessed mixed today. Japan Index surged 5% to record high on expectation of new prime minister to announce stimulus package. Japan's first female prime minister plans to cut taxes, increase subsidies, and honor Donald Trump's investment deal.

* European Market - European market declined. French stocks hit a session low as PrimeMinister Sebastien Lecornu resigned, sparking worries about further political turmoil in the country. France Index slipped 2% while Germany and UK Index are trading flat to negative.

* Commodity - Oil prices rise 1.5% to above $65/bbl after OPEC+ agreed to a more modest-than-expected increase in monthly output for November. The group of oilproducing nations is set to boost production by 137,000 barrels a day next month, the same as in October.

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