GIFT Nifty implies cautious start, further profit-booking on the cards? Levels to watch on October 31

Nifty 50, Sensex opened on a flat note on October 31.

After giving up the 26,000 mark in the previous session, GIFT Nifty signaled a flat opening with a positive bias for Indian benchmark indices Nifty 50 and Sensex. At 7.35 a.m., the GIFT Nifty index was quoting 26,065, higher by 0.1 percent or 23 points.

Global cues, rupee movement, and second-quarter earnings from India Inc are likely to guide market sentiment as investors navigate the final trading session of the week. "With global markets showing caution and the rupee under mild pressure, participants may remain selective ahead of key earnings announcements and macro data releases," noted Ponmudi R, CEO of Enrich Money.

Global markets were lower as investors turned cautious following overnight losses on Wall Street, driven by renewed concerns about global growth and policy uncertainty. Market participants are treading carefully while digesting the Federal Reserve’s latest policy cues and awaiting key economic data for further direction on the global outlook.

Asian equities climbed close to their record and US equity-index futures advanced as strong earnings from Amazon.com Inc. and Apple Inc. lifted sentiment after a brief pause in the global stock rally.

In the previous session, after opening on a negative note, the market continued to slide down in the early to mid-part of the session. "Technically, this market action indicates presence of crucial resistance around 26100 and profit booking from the highs. Nifty is presently moving within a broader high low range of 26100-25800 levels and is now sliding down to the lower range," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.

The near-term trend of Nifty remains positive and the short term is in profit booking mode. There is a possibility of Nifty finding support around 25800-25700 levels in the next couple of sessions before bouncing back again from the lows.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.