Nifty 50 Opens 169 Points Higher, Sensex Rises 718 Points Amid Renewed Diplomatic Efforts in the Middle East

The Indian stock market opened higher amid renewed diplomatic efforts to de-escalate the US-Iran conflict, although oil prices remain elevated at USD 110. Nifty 50 opened 169.2 points higher at 23,222.30 from the previous day’s close, while Bank Nifty started at 54,837.20, up 150.25 points. 

Sensex edged up by 718.72 points to 75,178.25. The broader indices underperformed, with the Nifty midcap index falling 0.8% and the smallcap index declining 1.8%. The Indian rupee opened with marginal gains at Rs. 94.89 per dollar on Monday against Friday's close of Rs. 94.95.

Foreign institutional investors (FIIs) bought equities worth Rs. 3,598 crore on October 30, while domestic institutional investors (DIIs) snapped their two-day buying streak, selling equities worth Rs. 817 crore.

Sensex Outlook

The 75,100-75,000 zone for Sensex remains the immediate support area, while resistance is placed around 75,450-75,500. The broader trading range stands at 73,800-75,300, indicating a sideways to bullish bias. Sustaining above the immediate support zone will be important for maintaining the recovery, while a decisive breakout above 75,500 could open the door for further upside.

Nifty 50 Outlook

Nifty 50 gained 2% last week, finding support near its 200-week exponential moving average (EMA). The immediate support zone lies at 23,200-23,250, where dips could attract buying interest. However, a decisive breakdown below this zone may revive selling pressure and drag the index towards 23,000. 

“On the upside, 23,300 remains an immediate hurdle. A sustained breakout above this resistance could strengthen bullish momentum and trigger further buying towards 23,600,” said Ravi Singh, Chief Research Officer from Master Capital Services Ltd.

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Bank Nifty Outlook

Bank Nifty gained 0.74% last week after the previous week's decline. However, it continues to trade below its 20-day EMA, suggesting that the broader trend remains cautious despite signs of improving momentum. 

On the daily chart, MACD turned positive, providing the first indication of improving momentum and a potential recovery. On the downside, 54,840 remains the immediate support, where any dip could offer a buying opportunity.

However, a decisive break below 54,600 may weaken the structure of the recent bullish move and could trigger selling pressure. On the upside, 55,000 remains the immediate resistance.