Taking Stock: Sensex, Nifty edge higher amid volatile trading; Adani Group stocks lead recovery

Vinod Nair, Head of Research, Geojit Financial Services

Indian indices continue to exhibit positive upside as a result of healthy consolidation and the likelihood of strong H2FY25 earnings forecasts. In Asia, market sentiment was mixed due to the potential tariff impositions by the US. Meanwhile, the Chinese market rebounded on expectations of additional stimulus measures. The global sentiment is positive as the US FOMC minutes and a truce in the Middle East were optimistic. Decelerating inflation and robust growth prospects could lead to continued rate cuts by the Federal Reserve.

Aditya Gaggar Director of Progressive Shares

With the help of Banking and select heavyweights, the Index breached its thin range to end the session higher at 24,274.90 with gains of 80.40 points. Among the segments, Energy and Media gained by 1.45 percent and 0.98 percent and outperformed whereas the Pharma sector fell by 0.61 percent and registered itself as a major laggard. Mid and Smallcaps advanced by 0.64 percent & 1.30 percent and outshined the Frontline Index. From the past 3 trading days, the Index is seen oscillating in a tight range of 24,140-24,350, a breakout on either side is necessary for a directional trend.

Ajit Mishra – SVP, Research, Religare Broking Ltd

The markets remained range-bound for the third consecutive session, closing slightly higher and continuing the ongoing consolidation phase. After an initial uptick, the Nifty traded within a narrow range during the first half. However, a late surge in select heavyweight stocks lifted the index, which eventually settled at 24,274.90. Sector-wise, the trend remained mixed, with energy and metal stocks leading the gains, while pharma and realty sectors showed minor weakness. Broader indices outperformed during the consolidation, registering gains of 0.7% to 1.35%.

The Nifty has demonstrated resilience throughout this consolidation phase, and the upcoming monthly expiry of November derivatives contracts on Thursday could potentially trigger a breakout above the 24,350 level, paving the way for a move toward 24,550. Notably, rotational buying in select heavyweight stocks across sectors is helping sustain a positive market sentiment. On the downside, a close below 24,100 could put pressure on the bulls and prolong the consolidation phase. In this environment, traders should prioritize prudent stock selection and effective trade management.

Ameya Ranadive Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox

Indian benchmark equity indices experienced a positive closing, influenced by mixed global cues. The Sensex increased by 230 points to reach 80,240, while the Nifty rose by 80.40 points to attain 24,300. The broader market indices have observed a notable rally over the past four sessions, with the Nifty Small-cap 100 advancing nearly 5% as FIIs mitigated their selling pressure and transitioned into marginal buyers. Overall, the market exhibited stability, with the VIX stabilising. Sectoral indices presented varied trends, reflecting both gains and losses across different sectors. The Nifty Energy and Metal indices demonstrated strong performances, whereas the Nifty IT and pharmaceutical sectors lagged behind. On a stock-specific basis, shares of Ola Electric surged by 20%, reaching the upper circuit limit of Rs 88.10, following the company's introduction of its most affordable electric scooters to date—the S1 Z and Gig range.

The benchmark index opened quietly and experienced a lackluster trading session. It fluctuated within a range of 209 points, staying close to the previous trading levels, which suggests a period of volatility compression. Overall market breadth remained pessimistic; however, broader indices outperformed the benchmark index for the second consecutive session. In terms of sector performance, the action was mixed, with Energy, Commodities, and the PSE index outperforming their peers, closing up by more than 1%.