As the festive spirit of Diwali lights up the streets, the Indian stock market too seems to have found its spark. Both the Nifty 50 and Sensex closed last week on a strong note, confirming a bullish breakout that traders had been eagerly waiting for.
After a brief phase of correction, the indices bounced back sharply — the Nifty 50 gained 1.68%, while the Sensex climbed 1.76%, signaling the end of the recent consolidation phase.
The Bank Nifty index continued its impressive run, rising 1.95% for the week, perfectly in line with market expectations. Overall sentiment has turned positive, and the charts are hinting that this rally may just be getting started.
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Sector Performance: Realty Shines Bright, IT Under Pressure
Among key sectors, the BSE Realty index stole the show with a solid 4.12% surge, reflecting strong investor confidence in the real estate space. On the flip side, the BSE IT index took a hit, slipping 2.3%, as global tech concerns weighed on sentiment.
This sector rotation shows how money is moving into high-beta sectors like banking and real estate — a healthy sign for a sustained bull phase.
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FPIs Turn Net Buyers Again
Adding more fuel to the fire, Foreign Portfolio Investors (FPIs) continued their buying spree for the second consecutive week, pumping in $988 million into Indian equities.
If this buying momentum strengthens, it could easily drive Nifty 50 and Sensex to new lifetime highs in the coming weeks. Institutional flows, combined with festive optimism, are clearly supporting the bulls right now.
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Nifty 50 Technical Outlook (25,709.85)
Short-Term View:
The short-term outlook remains firmly bullish. Immediate resistance is seen at 25,830.
A decisive move above this level can push Nifty towards 26,100–26,200 in the near term.
However, if 25,830 acts as a short-term cap, a mild pullback towards 25,400 is possible before the next leg of the rally begins.
Once Nifty crosses 26,200, traders can expect a quick extension towards higher levels.
Medium-Term View:
The recent breakout confirms the resumption of the broader uptrend. Our medium-term target for Nifty remains at 28,000–29,000, with a long-term projection towards 31,000 still intact.
A break above 26,200 could accelerate this rally further.
On the downside, there’s a cluster of strong supports around 25,500–25,000, which should cushion any short-term dips.
Only a fall below 23,500 would negate this bullish structure — but at the moment, that looks highly unlikely.
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Conclusion
With strong momentum, solid FPI inflows, and festive optimism, the Nifty 50 and Sensex appear set to continue their upward journey. The Bank Nifty’s leadership, along with sectoral rotation into real estate and banking, paints a confident picture for the weeks ahead.
As long as Nifty holds above 25,000, the bulls are firmly in control — and new highs could just be around the corner.