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Below the Quote on Market Wrap 31th October 2025 by Mr. Ajit Mishra – SVP, Research, Religare Broking Ltd

Markets edged lower on Friday, extending their ongoing consolidation phase, as the Nifty declined over half a percent. After a flat start, the index attempted to move higher but faced consistent profit booking in heavyweight counters across sectors, dragging it lower as the session progressed. Eventually, it settled near the day’s low at 25,722.10. Sector-wise, all key indices ended in the red, with metals, financials, and pharma among the top laggards. The broader markets also traded in line with the benchmark, slipping nearly half a percent each.

The session remained subdued amid continued global caution following the U.S. Federal Reserve’s hawkish tone. Additionally, the lack of sustained FII inflows further dampened sentiment. Meanwhile, the Trump–Xi summit offered only a temporary truce in the U.S.–China trade dispute, failing to provide lasting comfort to investors and keeping macro uncertainty elevated.

Technically, the Nifty is approaching a crucial support zone around 25,600, which aligns with its 20-day exponential moving average (DEMA). Sustaining above this level will be essential to preserve the prevailing positive bias; otherwise, a deeper correction cannot be ruled out. We continue to advise investors to use this consolidation phase to accumulate fundamentally strong names on declines, with a focus on sectors such as metals, autos, banking, and energy.

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