Sensex jumps 600 points as bulls cheer easing trade tension, Nifty fails to close above 26,000

Media and pharma stocks were among the few sectoral laggards in the session.

After breaching past the 26,000-mark intraday, the Nifty 50 index failed to sustain its momentum, settling above 24,900, while the Sensex closed 600 points higher on October 27. The rally was fueled by gains in Metal, Realty, Oil & Gas, and PSU Bank stocks.

At close, the Sensex was up 566.96 points or 0.67 percent at 84,778.84, and the Nifty was up 170.9 points or 0.66 percent at 25,966.05.

Easing trade tensions between U.S. and China, coupled with rate cut expectations from the U.S. Federal Reserve after a soft inflation print, led to bullish momentum. For India, the fundamentals are also turning positive with brisk festival season sales and reports of a smart pick up in capital spending by the private sector, noted experts.

Most sectoral indices traded higher in today’s session, with strong buying seen in state-owned banks, realty, auto and oil and gas stocks. Nifty PSU Bank led the gains with a rise of over 1.5 percent, while Nifty Realty and Nifty Auto also advanced more than 1 percent each. Metal stocks saw healthy momentum as well.

On the other hand, Nifty Media edged slightly lower and pharma names also remained under mild pressure.

"A sustained close above 25,950 could trigger a sharp rally toward 26,200–26,400, while dips toward 25,600 are likely to attract fresh buying interest. Structurally, the earlier swing high of 25,660 now serves as firm support, keeping the broader setup bullish," said Ponmudi R, CEO, Enrich Money.

However, some analysts expect the index to consolidate between the 25,500-26,000 range going ahead.  In the derivatives segment, the options open interest (OI) setup further reinforces the near-term range for the index.

"The 26,000 strike has emerged as the highest Call OI, indicating a strong resistance zone where call writers are actively defending their positions. On the downside, the 25,500 strike holds the highest Put OI, suggesting strong support at that level as put writers continue to add positions, reflecting confidence in the market’s ability to hold above this zone," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

The concentration of open interest at these strikes suggests that the index is likely to trade within a narrow range of 25,500–26,000 in the immediate term.

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