Stock Market Update: Nifty 50 and Sensex Poised for Positive Start Amid US-China Trade Optimism

The Indian stock market is likely to start with a positive sentiment on October 28, given the upbeat global cues and fresh optimism surrounding a potential US-China trade deal. Hopes of a Federal Reserve rate cut have also fueled investor sentiment.

Market Overview

The Gift Nifty showed a positive opening, trading near 26,055, or a premium of about 43 points, from its previous Nifty futures close. 

On Monday, the benchmark indices ended sharply higher, with Sensex rising 566.96 points (0.67%) to settle at 84,778.84 and Nifty 50 gained 170.90 points (0.66%) to close at 25,966.05.

Sensex Outlook

Sensex has formed a bullish daily candle on the daily chart, showing continued momentum. The immediate support zone is around 84,500, and as long as the index stays above this level, sentiment should remain bullish. 

On the other hand, a break below 84,500 may trigger a correction towards 84,200. If the index breaks above 84,700, it could test 85,000.

Nifty 50 Outlook

Nifty 50 also formed a bullish candle, which confirms the continuation of the uptrend. According to Nagaraj Shetti of HDFC Securities, the recent decline to 25,718 indicates a higher bottom, maintaining the bullish structure, and the index is expected to test the 26,300 to 26,400 levels shortly.

Nifty is currently below the trendline resistance near 26,100 and may serve as a short-term hurdle. A sustained break above this level could test the all-time high around 26,280.

Nifty 50 looks positive while it holds above 25,500; the next significant resistance zone is near the 26,000 to 26,300 levels.

Bank Nifty Outlook

Bank Nifty ended 414.65 points higher at 58,114.25, indicating renewed buying interest after a short correction. The 58,500 to 58,600 zone is likely to be a key resistance zone, and a sustained move above 58,600 could trigger a sharp rally towards 59,100.

On the downside, support is seen around 57,700 to 57,600, where a pullback may attract fresh buying.

The index is still above all the key moving averages, with RSI at 72 signaling strong momentum, and MACD pointing to further upside.

Also Read: US Stock Market Today: Global Stocks Rally as US-China Trade Deal Nears and Tech Earnings Surge

Sectoral Trends and Key Drivers

Analysts expect continued buying in PSU banks, real estate, metals, and oil & gas stocks, with defense shares likely to gain after the government’s Rs. 79,000 crore approval. 

Strong FII inflows of Rs. 621.5 crore and softer US inflation at 3.0% have boosted sentiment. Experts anticipate a bullish bias to persist, with dips viewed as opportunities to buy quality large-cap and banking stocks.