In a volatile trading session on October 29, Indian benchmark indices continued their upward momentum for the second straight day. The Nifty closed strong above the 24,450 mark, primarily driven by gains in realty and financial stocks, while the Sensex gained 364 points. Despite an initial dip influenced by mixed global cues, both indices recovered in the latter half, with the Nifty ending the day up 128 points or 0.52%, at 24,466.80, and the Sensex closing at 80,369.03, a gain of 0.45%.

Sectoral Highlights: Bank, Realty, and Power Lead

Sector-wise, banking, realty, power, and capital goods stocks posted gains of 1-2%, highlighting renewed interest in these areas. Pharma, IT, and auto stocks, however, faced some selling pressure, each dipping between 0.5% and 1%. The BSE Midcap and Smallcap indices mirrored this positive trend, each rising by around 0.7%, signalling investor optimism in broader market stocks.

Mid- and Small-Cap Rally: Top Performers

The day saw over 130 stocks touching their 52-week highs on the BSE. Notable performers included AMI Organics, Anup Engineering, CARE Ratings, CarTrade Tech, City Union Bank, Deepak Fertilizers, Gillette India, Indigo Paints, Krsnaa Diagnostics, MCX India, Piramal Pharma, Sharda Crop, SJS Enterprises, Thyrocare Technologies, and Wockhardt.

This strong performance in mid-and small-cap stocks suggests a resurgence in investor confidence, particularly in these segments that had experienced a challenging period over the past few months.

Technical Analysis and Market Outlook for October 30

Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas notes that the Nifty displayed resilience, trading with a positive bias after initial volatility, and closed the session with gains of around 128 points. He highlighted that the Nifty found strong buying interest around the 78.6% Fibonacci retracement level at 24,170, which acted as a critical support zone. This level served as a launching point for the next leg of the uptrend, potentially targeting the Fibonacci extension levels at 24,563–24,823.

The hourly momentum indicator also registered a positive crossover, signalling the potential for the counter-trend pullback to extend over the next few sessions.

In the Bank Nifty, the outlook remained similarly optimistic. Following a gap-up opening, the index witnessed solid buying action throughout the day, closing with impressive gains of approximately 1,061 points. Gedia expects the positive momentum to carry the Bank Nifty further toward the 52,600–52,800 range in the short term.

Aditya Gaggar, Director of Progressive Shares, pointed out that the broader market witnessed a strong reversal, particularly in the second half of the trading day. This recovery, following early weakness in the mid-and small-cap segments, helped the Nifty reclaim its position above 24,450, ending the day with gains of over 127 points.

Banking stocks led the sectoral rally, followed closely by the realty sector, while auto and pharma stocks underperformed. Both mid- and small-cap indices outperformed the main indices, demonstrating sustained interest in broader market segments.

From a technical standpoint, Gaggar highlighted the bullish candle formation on the charts, along with an emerging breakout pattern from a Falling Wedge formation, which is a potential reversal pattern. Additionally, the Relative Strength Index (RSI) showed a positive crossover, suggesting further upward momentum. A breakout level of 24,570 is anticipated, with support solidifying at the recent low of 24,140, providing the index a steady base.

Key Gainers and Losers

Top gainers for the day included SBI, Bharat Electronics, SBI Life Insurance, HDFC Life, and ICICI Bank, which all showed strong performances. On the other hand, stocks such as Tata Motors, Dr. Reddy’s Labs, Maruti Suzuki, Hero MotoCorp, and Bajaj Auto faced selling pressure and ended lower.

Broader Market Sentiment and Economic Outlook
Investors are closely watching for signals from the upcoming Federal Reserve policy meeting minutes and Fed Chair Jerome Powell’s speech at the Jackson Hole symposium. These events are likely to provide insights into the future direction of U.S. interest rates, which could have a ripple effect on global financial markets, including India.

Domestic factors, such as a positive mid-session turnaround and a stable earnings season, have added to the positive sentiment in the Indian markets. Analysts expect this momentum to persist, especially with supportive technical indicators pointing to further gains in the coming sessions.

Conclusion

October 29 proved to be a strong trading day for Indian markets, with the Nifty crossing the 24,450 mark, led by the banking and realty sectors. Both mid- and small-cap stocks continued to shine, suggesting robust investor interest beyond the frontline indices. As the market awaits global cues from the Federal Reserve, technical indicators suggest further upside potential, with critical support levels established to cushion any potential downside.

The coming days will be pivotal as the Nifty approaches the breakout level at 24,570, with analysts watching closely for whether the bulls can sustain their momentum. For investors, the technical resilience and sectoral strength of the current rally could provide attractive entry points, particularly in the banking and realty sectors, while maintaining a cautious eye on broader global developments.