India's benchmark indices ended a four-session losing streak on Monday, with the Nifty 50 gaining 153 points to close at 22,753 and the Sensex recovering from an early sell-off to settle near the day's high. According to CNBC TV18, the index opened 76 points lower and fell to an intraday low of 22,387 within the first 30 minutes of trade, before a sharp rebound lifted the Nifty by nearly 300 points over the next half hour. Profit-taking later pared almost 200 points from the intraday swing high, before renewed buying in the second half helped the index recover more than 200 points from its mid-session low. The gains were supported by post-earnings performances in key constituents including Dr Reddy's Laboratories, JSW Steel and BSE, with Dr. Reddy's Laboratories, JSW Steel and BSE among the top Nifty gainers, while Shriram Finance, Tata Consumer Products and Bajaj Finance were among the major laggards.
Investors are awaiting the US Federal Reserve's policy decision on October 28, with the central bank widely expected to keep interest rates unchanged. As reported by CNBC TV18, this uncertainty has contributed to limiting the market's upside potential. The elevated oil prices continue to create inflation concerns, adding to the cautious sentiment in the market despite the positive recovery from the recent decline. Brent crude futures were trading around $115 a barrel, below the near six-month high of $117 reached before Friday's Indian market close, though continued attacks on Saudi Arabia have kept concerns about potential oil supply disruptions elevated. According to Motilal Oswal Financial Services, Siddhartha Khemka noted that Indian stock markets are expected to trade sideways until greater clarity emerges on global cues and policy decisions, with markets expected to sustain at current levels while continued attacks on Saudi Arabia have kept concerns over potential supply disruptions elevated.
Market expert Chandan Taparia from Motilal Oswal Financial Services has recommended three stocks for buying opportunities. According to LiveMint, he recommends Laurus Labs with a target price of ₹2,180 and stop-loss of ₹1,990, MCX with a target of ₹3,300 and stop-loss of ₹3,020, and Coforge with a target price of ₹2,120 and stop-loss of ₹1,930. These are technical trading calls that investors should consider their risk appetite and market conditions before taking positions. Nifty successfully held above Friday's low of 22,372 and staged an intraday reversal, with the index also reclaiming its 20-day moving average (20-DMA) on the daily chart, pointing to improving near-term momentum. Ponmudi R, CEO of Enrich Money, emphasized that the 22,800 level continues to act as a major resistance, and the index needs to decisively break and sustain above this zone to extend its recovery towards the psychological 23,000 mark, with immediate support expected at 22,500, followed by stronger support at 22,200–22,100.
The Nifty 50 formed a bullish candle on the daily frame with a small lower shadow, reflecting recovery in market sentiment and renewed strength from lower levels. As reported by CNBC TV18, Nagaraj Shetti of HDFC Securities said the Nifty's short-term trend appeared to have turned mildly positive, with a decisive move above 22,800–22,850 confirming a short-term reversal pattern. Hitesh Rathi of Angel One identified 22,500–22,380 as the immediate support zone, followed by stronger support at 22,200–22,100, while on the upside, the index faces an immediate hurdle at 22,800–22,850, with the next resistance zone at 23,000–23,100. Nandish Shah of HDFC Securities said the Nifty successfully held above Friday's low of 22,372 and staged an intraday reversal, with the short-term outlook turning bullish if the index sustains a move above 22,800, potentially opening the way towards the next resistance at 23,175. However, a break below 22,372 could revive selling pressure and expose the index to the 22,100–22,200 support zone.
The broader market also participated in the recovery, with both Nifty Midcap 100 and Nifty Smallcap 100 advancing 1.2% and 1.4% respectively, following last week's sharp sell-off. According to CNBC TV18, most sectoral indices ended in positive territory, with Nifty Metal, Cement, Pharma and Healthcare leading the gains, while Nifty Media and Consumer Durables were the exceptions. Market breadth remained firmly positive, with the Advance-Decline ratio favouring advances and 335 stocks ending the session in the green within the Nifty 500 universe. Market direction is likely to depend on global cues, central-bank policy decisions and the next round of corporate earnings, with investors tracking policy decisions from the US Federal Reserve on October 28, the European Central Bank on October 29 and the Bank of Japan on October 30. The Indian rupee weakened for a third consecutive session, falling 25 paise to close at 95.19 against the US dollar, with pressure from weaker Asian currencies and rising domestic bond yields adding to the currency's losses.
