Sensex, Nifty catch a breather after 5-day losing streak; ICICI Bank leads gains

In the broader market, the BSE Midcap index was down 0.2 percent and the BSE Smallcap fell by 0.8 percent.

Sensex and Nifty finally took a breather, opening higher on October 28 after five consecutive sessions of decline. Gains in ICICI Bank, whose shares rose nearly 3 percent after strong Q2FY25 results, buoyed market sentiment as brokerages issued multiple 'buy' calls and raised target prices on the bank's robust performance. An uptick in Asian markets and easing fears of an Israel-Iran conflict also contributed to the positive opening.

At 10.20 AM, the Sensex was up 735 points or 0.9 percent at 80,137 and the Nifty was up 187 points or 0.8 percent at 24,368. About 1,746 shares advanced, 1,518 shares declined, and 141 shares remained unchanged.

However, analysts caution that the Indian benchmarks' uptick may be short-lived, with FIIs continuing to exit and underwhelming corporate earnings.

"Over the last three to four years, retail investors have supported the market as a group, with each rupee invested yielding profit, which brought more liquidity. However, this month, extra investments have started resulting in losses, discouraging further investing, and causing a liquidity squeeze," said Ambareesh Baliga, an independent market analyst. He believes that the markets are now in a vicious cycle. "Today, a 100-200 point bounce might occur but would likely be sold into," he said.

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Baliga suggests that any lasting reversal for Sensex and Nifty will hinge on valuations or improved macroeconomic data. "Either the market must fall another 10 percent to make valuations attractive, or we need improving macro data and resolution of geopolitical issues," he told Moneycontrol.

In the broader market, the BSE Midcap index was up 0.3 percent and the BSE Smallcap rose by 0.1 percent.

Nifty Bank rose 1.5 percent, led by ICICI Bank, SBI, and HDFC Bank gains. Meanwhile, energy stocks saw declines, with Coal India and ONGC dropping 5 percent and 3 percent, respectively. Coal India's shares fell over 5 percent after the coal mining firm reported a decline in its consolidated net profit for the September quarter.

Among the Nifty 50, Shriram Finance, ICICI Bank, SBI, IndusInd Bank, and Adani Enterprises led the gainers, rising between 2-6 percent, while Coal India, ONGC, SBI Life, L&T, and Bharat Electronics topped the losers, falling 0.5-3 percent.

Sameet Chavan, Head of Technical and Derivative Research at Angel One, remarked that weekly and monthly technical charts indicate further price correction. He anticipates Nifty support at 23,900 and resistance around 24,350-24,600.

Asian markets traded higher today while the US stock market closed mixed last week.

This week, investors will focus on key market triggers, including the next set of Q2FY25 earnings, monthly derivatives expiry, geopolitical developments in the Middle East, trends in foreign fund flows, crude oil prices, the US Presidential Election, and other global and domestic macroeconomic data.

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