Nifty recovers from intraday fall on monthly expiry, Sensex closes lower amid volatility

Nifty, Sensex ended on a flat note on October 28.

After a volatile session of swinging from strong gains to sharp losses, the benchmark indices Nifty 50 and Sensex settled flat on October 28.

After surging to the 26,000 mark on its weekly expiry, Nifty 50 quickly gave up its gains through the session to sink to the day's low of 25,810.05. However, the index recovered most of its losses to settle at 25,936, lower by 30 points or 0.1 percent. Sensex closed the session at 84,628.16, down 151 points or 0.2 percent.

Benchmark sectoral indices displayed a mixed trend, with notable strength in metals and PSU banks while defensives and rate-sensitives dragged. Nifty Metal led the gainers with a sharp rise, accompanied by solid buying in PSU banks and private lenders. Media stocks also inched up.

In contrast, realty, consumer durables, FMCG and IT sectors saw profit-booking, weighing on overall sentiment. Oil and gas, healthcare and pharma also closed slightly lower, reflecting cautious investor positioning amid broader market consolidation.

"There is fundamental support for the Indian market from the leading indicators relating to GDP growth and corporate earnings. The only concern is the relatively high valuations in India which might prompt the FIIs to again turn sellers if the market makes a smart rally," noted VK Vijayakumar, Chief Investment Strategist, Geojit Investments.

From a technical perspective, the Nifty continued to hold firm above its crucial support zone of 25,700–25,750, maintaining a sideways-to-bullish bias.

"On the upside, immediate resistance is seen at 26,000–26,100, and a decisive move above 26,000 could accelerate the rally toward 26,100–26,200 in the near term. The trend remains positive as long as the index sustains above 25,750, suggesting that dips may continue to attract buying interest," said Amruta Shinde, Technical & Derivative Analyst, Choice Broking.

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