The Indian stock market closed lower on Tuesday, November 4, 2025, due to selling pressure, continued foreign outflows, and weak global cues. Benchmark indices closed in the red, snapping their recent recovery attempts.

Indian stock markets, including BSE, NSE, and MCX, will be closed on November 5 for Guru Nanak Jayanti and will resume trading on November 6.

Benchmark Indices Decline

Sensex fell 519.34 points or 0.62% to close at 83,459.15, while Nifty 50 dropped 165.70 points or 0.64% to settle at 25,597.65. 

The broader market reflected this cautious sentiment. Nifty Midcap 100 dropped 0.42% while Nifty Smallcap 100 fell 0.82% indicating a risk-off on mid and small-cap counters. 

India VIX, the volatility index, ticked slightly higher at 12.65, indicating an uptick in market nervousness.

Institutional Flows and Market Sentiment

FIIs continued their selling streak, offloading equities worth ₹1,067.01 crore, according to exchange data. On the other hand, DIIs provided some cushion, purchasing stocks worth ₹1,202.90 crore.

Analysts said that the recent correction reflects profit-booking after a strong October rally, coupled with global uncertainty and caution ahead of key US Federal Reserve comments.

Nifty Outlook

Nifty’s retest of its 20-day EMA suggests potential weakness if it sustains below this level, possibly extending the correction toward 25,400. 25,800 is the immediate resistance.

If the index closes below 25,590, it could push towards 25,500-25,525, while strength might resume above 25,700. 

Open interest data supports this stance, as OI indicates heavy Call writing at the 25,800 level, while there has been Put repositioning near the 25,500 level, suggesting a more defensive position. 

Sensex Outlook

Sensex has near-term support near 83,000, with even deeper support found between 82,800-82,500. The first level of resistance lies around 83,750-84,100, a probable area of profit-booking if the index attempts a rally. 

As long as the market remains below 83,750, weakness in sentiment is likely to persist. If it climbs above, there could be a short-term bounce towards 84,400.

Analysts recommend a cautious approach for traders, as volatility remains high, and recommend that traders keep their positions light until a breakout occurs.

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Bank Nifty View

Bank Nifty ended Monday at 57,827, down 0.47%, forming a red candle after a bullish session on Monday.

Support is seen at 57,450-57,500 and resistance at 58,450-58,600. A decisive breakout above 58,500 could push the index toward the 59,000 level in the short term.