After opening with strong gains amid optimism surround the India-U.S. trade deal, Dalal Street gave up most of its gains in the afternoon leg of trade on October 23. The Nifty 50 index hit the 26,000 mark for the first time in trade since September 30, 2024. However, as the index rallied, investors rushed to book profits and take some gains off the table.
At close, the Sensex was up 57.96 points or 0.07 percent at 84,484.30, and the Nifty was up 1.35 points or 0.01 percent at 25,869.95. About 1626 shares advanced, 2238 shares declined, and 110 shares unchanged.
Sectoral trends on the NSE were mixed. The Nifty IT index led the gains with a sharp 2.21 percent rise, followed by Nifty Private Bank, which added 0.49 percent, and Nifty FMCG and PSU Bank, up 0.29 percent and 0.28 percent, respectively. Media, Realty, and Metal indices also closed with mild gains. On the other hand, Nifty Oil & Gas declined the most, slipping 0.57 percent, while Healthcare, Financial Services, Auto, and Consumer Durables indices ended marginally lower.
The broader markets gave up its wins too, as the Nifty Midcap 100 and Nifty Smallcap 100 ended with mild cuts. The India VIX gauge rallied over three percent, as volatility in the market saw an uptick.
According to experts, today’s mild fall from the top was driven more by technical fatigue and external factors than by any domestic weakness. The market remains fundamentally strong, backed by steady domestic and foreign inflows, stable inflation, and optimism over India–U.S. trade talks.
"Going ahead, some short-term consolidation or sideways movement is likely as traders await clarity from global data. As long as the Nifty holds above 25,800 and Bank Nifty sustains above 58,000, the broader market bias remains positive, with potential for renewed upside once volatility stabilizes," said Ponmudi R, CEO of Enrich Money.
On the technical front, the Nifty 50, after testing an intraday high of 26,104, is still holding its bullish structure but showing early signs of exhaustion. The index continues to find firm support at 25,800, and a break below this zone could extend profit-taking toward 25,600, while resistance remains placed at 26,000–26,300.
Option data indicates heavy Call writing at 26,200–26,300 and strong Put support near 25,700–25,800, suggesting that the index may consolidate within this range before a fresh breakout.
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.
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