Stock Market Update: Nifty, Sensex Poised to Extend Diwali Rally; Bank, FMCG Stocks in Focus

The Indian stock market will probably open positively on 22nd October 2025 as the markets are closed today except for a special mahurat trading session of 1 hour. There is optimism due to the positive festive mood, continuous foreign inflows, and strong sectoral momentum. After the recent gains, traders are speculating on Nifty 50 and Sensex to reach new peaks.

Market Recap: Festive Energy Fuels Gains

Markets ended the previous session with notable strength, led by heavy buying in banking and consumer stocks. Sensex increased by 411.12 points (0.49%) to end at 83,952.19, while Nifty 50 gained 133.30 points (0.52%) to finish at 25,709.85.

The rally was bolstered by short covering by foreign investors and continued domestic institutions' inflows.

Nifty 50 Outlook

Nifty 50 continues to display strong bullish momentum as it has broken above key resistance levels on weekly charts.

Immediate support is seen near 25,400-25,450, which also coincides with the recent breakout zone. If the price sustains above 25,750, then the index could head towards 25,900, and above 25,900, then 26,100-26,200 in the short term.

Sensex Outlook

Sensex is also experiencing strong upward momentum, supported by advances in large financials and consumption-heavy weights.

The index is currently trading near record levels, and a sustained close above 84,000 may see a rally towards 84,300-84,500 in the near term. On the downside, there is support at 83,400-83,200, where buying interest may emerge.

Bank Nifty Outlook

Bank Nifty is the primary contributor to the current rally, with strong bullish candles in successive sessions.

Analysts anticipate a test of 58,500 and 59,000 levels in the next sessions, with immediate support around 56,700-57,000. The strength in HDFC Bank, ICICI Bank, and Axis Bank continues to provide overall market strength.

Also read: US Stock Market Today: S&P 500 and NASDAQ Rise 0.5%, as Markets Focus on Earnings and Trade Developments

Key Factors to Watch

• The outcomes from Reliance Industries, HUL, SBI Life, and Dr. Reddy’s will dictate sector movement.

• Continued foreign buying will protect against global volatility.

• Stability in the rupee near Rs. 88/USD and positive global factors could maintain momentum.

• Softer US inflation data could strengthen expectations of a rate cut later this month, improving risk appetite.

Final Thoughts

The general sentiment in the market is positive as traders position themselves on quality large-caps and banking stocks. If the foreign inflows continue, and companies continue to report positive earnings, Nifty will reach 26,000 and Sensex could break 84,500.