The Indian stock market bounced back sharply on Tuesday, ending a two-day losing streak as Nifty 50 and Sensex posted strong gains driven by banking, financial, and realty stocks. Optimism around a potential US Fed rate cut later this month further lifted investor sentiment.
The NSE Nifty 50 surged 178.05 points (0.71%) to close at 25,323.55, while the BSE Sensex climbed 575.45 points (0.70%) to settle at 82,605.43.
Sectoral Performance:
On the sectoral front, Nifty Bank added 303.45 points to close at 56,799.90, while Nifty Realty led the rally with a 3.04% surge. PSU Banks and Metal indices gained 1.67% and 1%, respectively, while FMCG rose 0.99%.
In the broader market, Nifty Midcap 100 advanced 1.11% and Nifty Smallcap 100 gained 0.82%, indicating strong market breadth.
The India VIX, a measure of market volatility, fell 5.6% to 10.53, reflecting calmer sentiment.
According to exchange data, Foreign Institutional Investors (FIIs) bought equities worth ₹68.64 crore, while Domestic Institutional Investors (DIIs) were net buyers of ₹4,650.08 crore.
Market Experts’ Take:
Ajit Mishra, SVP of Research at Religare Broking, said the rebound was fueled by strong earnings expectations and renewed confidence in India’s macroeconomic outlook.
“Realty stocks outperformed due to easing rate cycle expectations and attractive valuations,” Mishra noted.
Vinod Nair, Head of Research at Geojit Financial Services, said:
“Nifty looks poised to retest the 25,450 trendline resistance. A breakout above this could push the index toward 25,650 and beyond.”
Technical Outlook: Key Levels for October 16
Support and Resistance:
- Immediate support: 25,150
- Resistance zone: 25,400 – 25,500
Nandish Shah, Deputy VP at HDFC Securities, stated that Nifty is approaching a symmetrical triangle resistance at 25,400.
“A sustained move above this zone could trigger a breakout toward 25,669,” he said.
Rupak De, Senior Analyst at LKP Securities, said Nifty’s close above 25,250–25,300 indicates bullish momentum.
“The index comfortably trades above its 21-EMA (25,061), suggesting further upside toward 25,500–25,600. However, a drop below 25,250 may trigger short-term profit booking,” he added.
Chart View: Long Bull Candle Signals Strength
According to Nagaraj Shetti, Senior Technical Analyst at HDFC Securities, a long bull candle has formed on Nifty’s daily chart, signaling renewed strength.
“Nifty is on the verge of breaking past multiple resistances around 25,400–25,500. A decisive move above 25,500 could open the door for 25,700–25,800 levels,” he said.
Shetti added that immediate support lies at 25,200, and the overall trend remains positive and bullish.
Derivatives Outlook:
Amruta Shinde, Derivative Analyst at Choice Equity Broking, observed that open interest (OI) data indicates heavy call writing at 25,500 and maximum put buildup at 24,300.
“This suggests 25,500 remains a strong resistance. A close above this level would confirm bullish breakout and sustain positive sentiment before Diwali,” she said.
Summary:
With Nifty forming a bullish candle and trading near key resistance levels, analysts believe a breakout above 25,500 could signal the start of a pre-Diwali rally, targeting 25,700–25,800 in the near term.
Originally published on newsworldstime.com.
Originally published on 24×7-news.com.
