IGI Logo

Below the Quote on Weekly Note 01st November 2025 by Mr. Ajit Mishra – SVP, Research, Religare Broking Ltd.

Markets Snap Four-Week Winning Streak; Profit-Booking and Global Cues Weigh on Sentiment

Market Summary

Markets ended their four-week winning streak, closing marginally lower amid profit-booking and mixed global cues. The tone remained largely positive and volatile during the first three sessions; however, profit-taking in the final part of the week erased early gains. Consequently, both benchmark indices settled near the week’s low, with the Nifty closing at 25,722.10 and the Sensex at 83,938.71.

Key Market Drivers

The week’s market mood reflected a blend of domestic resilience and global caution. On the domestic front, India’s industrial output rose 4% year-on-year in September 2025, supported by strong manufacturing activity—an improvement from 3.2% growth in the same period last year. Adding to the positives, China granted licenses to select Indian firms to import rare earth magnets, a move seen as a step toward improving bilateral trade relations. However, sentiment turned cautious after the U.S. Federal Reserve cut its benchmark interest rate by 25 basis points to the 3.75%–4.00% range but hinted that it could be the final cut of 2025, dampening hopes of further near-term easing. Despite this, steady corporate earnings and continued FII inflows through October helped cushion the downside.

Sectoral Snapshot

Sectoral performance during the week was mixed. Metals, Energy, and Realty stocks performed well, supported by firm demand and favorable global trends, while profit-taking in Auto, Pharma, and IT stocks weighed on the benchmarks. Amid the volatility, the broader indices continued to outperform, with the Midcap index advancing 1% and the Smallcap index rising 0.7%, indicating selective buying interest across segments.

Key Events to Watch

The upcoming holiday-shortened week is expected to remain eventful, with multiple key data releases and major corporate earnings lined up. On the macroeconomic front, attention will turn to the final readings of the HSBC Manufacturing PMI, as well as the HSBC Services and Composite PMI data, which will offer cues on domestic growth momentum.

On the earnings front, several index heavyweights are set to announce their quarterly results, including Bharti Airtel, Titan Company, Adani Enterprises, Adani Ports, InterGlobe Aviation, Mahindra & Mahindra, Paytm, SBI, Britannia, Lupin, Bajaj Auto, and Hindalco Industries.

Globally, developments related to trade deals and trends in major international markets will also be closely tracked for directional cues.

Technical Outlook.

* Nifty (25,722.10): After four consecutive weeks of gains, the Nifty witnessed mild profit-taking, signaling a short-term consolidation phase. Support now lies near 25,600, coinciding with the 20-DEMA, and further down at 25,400, marked by trendline support. On the upside, resistance is seen around 26,100, and a sustained move beyond this level could open the door for a new record high.

* Bank Nifty (57,776.35): The banking index remained relatively firm, closing the week with a marginal gain. Notably, the PSU Bank index surged over 4.5%, while private banks ended with mild losses. Going forward, the 56,400–57,300 zone will act as crucial support, whereas a decisive breakout above 58,500 could trigger fresh momentum toward the 60,000 mark.

* Broader Market: The midcap and smallcap indices outperformed during the week, though selective participation continues to suggest caution. Traders should focus on companies with strong earnings visibility and avoid chasing overextended or illiquid stocks to minimize risk.

Strategy Ahead

Markets are expected to remain range-bound in the near term, with domestic earnings announcements and global macro developments guiding overall sentiment. While mixed global cues may cause short-term fluctuations, supportive factors such as healthy corporate earnings, some consistency in FII inflows, and resilient domestic economic indicators are likely to provide a floor for the market.

Traders should maintain a stock-specific “buy-on-dips” approach, focusing on sectors displaying relative strength such as Banking, Auto, and Metals. Investors are advised to stay selective in the mid and smallcap space, preferring companies with robust fundamentals and consistent performance, while avoiding speculative trades or extended counters in the current environment

Above views are of the author and not of the website kindly read disclaimer