Stock Market Outlook: Nifty 50, Sensex Set for Positive Start Amid Global Cues and India-US Trade Talks

The Indian equity markets are likely to begin on a positive note on Thursday, October 16, boosted by the global sentiment and optimism around the trade discussions between India and the US. Trends on the Gift Nifty indicated a positive opening, trading around the 25,461 level, which is 37 points higher than the previous Nifty futures close.

On Wednesday, the Sensex jumped 575.45 points (0.70%) to close at 82,605.43, while the Nifty 50 advanced 178.05 points (0.71%) to settle at 25,323.55.

Sensex Outlook

Sensex formed a bullish candle on the daily chart, sustaining its ongoing uptrend continuation pattern. Analysts identify 82,300 as the important support zone. Above this market sentiment is expected to remain positive. 

A strong breakout above 82,300 could push the index towards 83,200-83,400 levels, while a break below this level could lead to profit-taking.

Nifty 50 View

Nifty 50 showed a remarkable recovery after a short pause at the start of the week, creating a long bullish candle and breaching the previous bearish engulfing high. The index now faces resistance between 25,400-25,500, a zone defined by previous swing highs and trendline barriers.

According to HDFC Securities’ Nagaraj Shetti, a breakout above 25,500 could open the way for 25,700-25,800, while support lies near 25,200.

Momentum indicators are supportive. RSI has bounced back to 60.49, and MACD remains above the zero line, indicating a positive medium-term trend. 

A break above 25,450 may extend the recovery to 25,650, with 25,150-200 providing important support.

Analysts expect the ‘buy-on-dips’ strategy to dominate, suggesting fresh long positions around 24,800-25,000 with upside potential toward 25,700.

Bank Nifty Outlook

Bank Nifty gained 303 points (0.54%) to finish at 56,799.90, forming a bullish candle that confirmed higher highs and higher lows. 

Analysts expect the index to maintain its lead over benchmarks, with immediate support near 56,200-56,000 and resistance around 57,000-57,600.

The index holding above 55,820 keeps the short-term bias positive toward 57,300-57,500.

Also Read: US Stock Market Today: S&P 500 Rises 1.1% & NASDAQ Gains 1.4% as US-China Trade Tensions Ease and Bank Earnings Beat Forecasts

Sectoral Snapshot

All major sectors, barring Media, ended in the green. Nifty Realty gained 3% while Power, PSU Bank, Metal, and Consumer Durables rose 1%-2% each. 

In addition, the broader markets got stronger as Nifty Midcap 100 went up by 1.11% and Smallcap 100 by 0.82%, which shows a renewed interest in mid- and small-caps.

Overall, the short-term outlook for Indian equities remains bullish, and traders are likely to adopt a buy-on-dips approach backed by global cues and domestic momentum.