Global Trends, Crude Oil Prices To Shape Indian Stock Market In Coming Week

Indian stock markets recorded a strong recovery in the week before Diwali, with benchmark indices gaining nearly 2 per cent. Buying in pharmaceutical, IT and selected sectors supported the rebound.

The Sensex rose 1,335.70 points, or 1.83 per cent, during the week ended October 30 to close at 74,459.53. The Nifty gained 453.10 points, or 2 per cent, settling at 23,053.10.

The market initially remained under pressure, with the Nifty touching an intraday low of 22,387.35. However, strong buying at lower levels helped the index recover and finish above 23,000.

The Nifty Pharma index emerged as the strongest performer, advancing around 7.1 per cent. Media and real estate indices followed with gains of 4.3 per cent and 3.8 per cent, respectively.

Metal, automobile, FMCG and PSU banking stocks also gained between 2 and 3 per cent. Banking and financial services shares recorded comparatively modest advances.

Analysts attributed stock-specific buying to the ongoing second-quarter earnings season, as investors favoured companies reporting stronger-than-expected results.

Market sentiment in the first trading week of November is expected to depend on domestic and international developments.

Key factors include the US mid-term elections, tensions between the US and Iran, crude oil price fluctuations and upcoming corporate earnings announcements.

Technical analysts identify 23,200 as an important resistance level for the Nifty. A decisive move above it could open the way towards 23,700–24,000.

“On the downside, 22,850 is seen as the first major support level. A stronger support zone lies between 22,600 and 22,400, where the 200-week EMA and long-term trendline converge,” market experts stated.

The index’s support near its 200-week exponential moving average and long-term uptrend line has also improved near-term sentiment.

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