Stock Market Update: Nifty 50, Sensex Set for Strong Opening Amid India-US Trade Deal Optimism

The Indian stock market is expected to have a strong opening on Thursday, backed by optimism about a potential India-US trade agreement. The Gift Nifty stood at around 26,259, signifying a gap-up opening of about 352 points from its previous close, indicating a strong bullish tone.

Market Overview

After a small midweek break for the Diwali holiday, market participants are back with optimism. 

Sensex rose by 62.97 points (0.07%) in the Diwali Muhurat session to close at 84,426.34, and Nifty 50 gained 25.45 points (0.10%), continuing its upward trend.

Traders and investors are now watching the impact of reports suggesting that the US may reduce tariffs on Indian imports to 15-16%. 

Nifty 50 Outlook

Nifty 50 continues to consolidate near its all-time highs. The October 28 expiry of open interest (OI) suggests a slightly bullish setup. The Call OI is 13.60 crore, and the Put OI is at 13.51 crore with a put-call ratio of 1.00.

Strong Put bases at 25,600-25,700 are strong support levels, and robust Call writing between 26,000-26,200 establishes an immediate resistance zone.

As long as Nifty remains above 25,800, the general market structure will be bullish, and a breakout above 26,000-26,300 could drive the index to new all-time highs.

Sensex Outlook

Sensex reflects the positive sentiment in Nifty, maintaining a solid uptrend due to strong domestic inflows and optimism over trade policy. The index has a key resistance around the 84,800 to 85,000 level, and 84,000 to 83,600 will act as immediate support zones.

A sustained close above 85,000 could trigger a rally toward 85,500-86,000.

“The Sensex is showing steadily higher highs on the daily chart, supported by improving breadth in banking, auto, and IT sectors. As long as it holds above the 21-day EMA, the outlook remains decisively bullish,” said Rupak De of LKP Securities.

Bank Nifty View

Bank Nifty closed marginally lower on Tuesday at 58,007.20, slipping 26 points (0.04%) after testing its multi-month resistance zone. Analysts see 58,200 as a key supply area that must be breached for the next leg of the rally.

A sustained close above 58,250 may open targets of 58,800-59,200, while supports remain firm at 57,600-57,400. The broader trend is intact and continues to favor the bulls.

Also Read: US Stock Market Today: S&P 500 Falls 0.2% & NASDAQ Dips 0.5%, as Tech Weakens, & Gold Extends Losses Amid Earnings Season

Global Trends

The Dow Jones fell 0.71%, the S&P 500 dropped 0.53%, and the Nasdaq slipped 0.93%. Brent crude rose 2.3% to $64 per barrel after new US sanctions on Russian oil firms, while gold eased 0.6% to $4,071 per ounce as investors booked profits.

On the institutional front, FPIs were net sellers at Rs. 96.7 crore, whereas DIIs were net buyers worth ₹607 crore, signaling continued domestic strength despite global uncertainty.