The Indian stock market is expected to start on a weak note on Thursday, October 30, following cautious global cues after the US Federal Reserve’s rate cut and Chair Jerome Powell’s remarks dampened hopes.
The Gift Nifty was trading around 26,163, with a discount of 75 points from the previous Nifty futures close. This indicates that the domestic indices could experience slight profit-taking in the initial trades.
Technical charts show that the bullish momentum in Sensex continues with higher bottoms on the daily chart.
Analysts believe 84,800 is a critical support level, and a breakout above the 85,000-85,300 zone could take the index towards 85,500. On the other hand, a break below 84,800 may lead to a move to 84,500-84,200.
Shrikant Chouhan of Kotak Securities notes that the short-term bias remains positive as long as the index sustains above 84,800.
Following the formation of a bullish candle on the daily chart, Nifty 50 seems ready for a potential breakout above its immediate resistance of 26,100.
Analysts suggest that the overall structure is still constructive, and a break above 26,100 could open the door to 26,400-26,500 in the short term.
Support is seen at 25,800-25,900, while traders are advised to maintain a buy-on-dips strategy as long as the index holds above 25,670.
On Wednesday, Bank Nifty index rose 171 points (0.29%) to 58,385.25, forming a small-bodied candle with an extended lower shadow, suggesting buying pressure at lower levels.
Analysts note that momentum indicators such as RSI and ADX show bullish strength.
Immediate resistance is at 58,500, and a strong close above this level could extend gains toward 59,000. Key supports are placed around 58,000-57,950.
Market sentiment remains positive due to robust FII inflow, softening crude prices, and positive sentiment of Q3 results coming from large caps such as ITC, NTPC, Adani Power, DLF, and Hyundai Motor.
On a sectoral basis, Oil & Gas, Metals, and Media stood out on Wednesday, while Auto stocks experienced minor profit booking. FIIs were net buyers, bringing in Rs. 10,340 crore, the most in a single day since June 2025.
The US Federal Reserve lowered its key policy rate by 25 basis points to 3.75-4%. However, Powell's cautious tone on any future rate cuts led to a sell-off in global equities.
Asian peers reflected the weakness seen in US markets, setting the tone for a muted start for Indian markets.
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