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Indian equity markets are entering Samvat 2083 on a strong footing after an extraordinary week on Dalal Street, with the Nifty 50 reclaiming the psychologically important 25,000 mark and the Sensex crossing 81,000.
Both benchmark indices recorded their biggest weekly gains since February 2021, rising 8.6% and 8.8%, respectively, as a sharp correction in crude oil prices, aggressive foreign fund buying and better-than-expected corporate earnings triggered a broad-based improvement in investor sentiment.
The rally was particularly significant as Indian equities managed to outperform global markets despite a sharp selloff in technology stocks and AI-linked shares. Foreign institutional investors (FIIs), who had remained net sellers for much of 2026, returned aggressively to domestic equities. They purchased shares worth ₹13,749.82 crore on Friday, according to exchange data, taking their purchases over the last five trading sessions to ₹35,781 crore, according to market estimates.
On Friday, 6 November, the Nifty 50 advanced 493.75 points, or 2.01%, to close at 25,030.35, while the BSE Sensex surged 1,718.01 points, or 2.17%, to settle at 81,028.02. Both indices ended at their highest levels in more than eight months. The Nifty and Sensex also extended their winning streaks to seven consecutive sessions, their longest such runs in 14 months and 26 months, respectively.
Despite the sharp recovery, both benchmarks remain in negative territory for 2026, with the Nifty down 4.2% and the Sensex lower by 4.9%, compared with a 7% gain in the MSCI Emerging Markets index.
With the festive season ushering in Samvat 2083, investors will be watching whether the momentum can be sustained or the sharp rally gives way to some consolidation. What are the key support and resistance levels for the Nifty 50, and how high can the index climb? Here's what market experts and technical analysts expect.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the sharp selloff in US technology stocks could have a relatively limited impact on Indian equities, while the slowdown in the global AI trade could work in India's favour.
He attributed the Nasdaq's 5.6% plunge to concerns over a potential slowdown in data centre spending amid political opposition to large-scale investments in the sector in the US. According to him, the resulting correction in technology and AI-linked stocks could benefit markets such as India, which have relatively limited exposure to the global AI trade.
Vijayakumar noted that FIIs had purchased Indian equities worth ₹35,781 crore over the preceding five trading sessions. He expects domestic markets to remain resilient if foreign buying continues, even as domestic institutional investors (DIIs) book profits.
He also highlighted that the ongoing rally is fundamentally supported by better-than-expected corporate earnings growth.
"An important factor investors should recognise is that this rally is being driven by large-cap stocks, which had become attractively valued," Vijayakumar said.
He pointed to the divergence between large- and small-cap stocks, noting that while the Sensex rallied 2.6% in the previous session, the Nifty Smallcap 100 index gained only 0.67%. This indicates that institutional money is increasingly moving towards large-cap stocks.
Vijayakumar sees further upside potential in financial, technology and automobile stocks.
Osho Krishan, Chief Manager – Technical and Derivatives Research at Angel One, said the Nifty 50 has staged a sharp vertical rally, decisively moving above all its key exponential moving averages (EMAs) and the 200-day simple moving average (200-DSMA).
However, momentum indicators have entered overbought territory, suggesting that investors should exercise caution at current levels. Krishan said some profit booking cannot be ruled out, but any such correction should be viewed as a healthy consolidation that could help sustain the broader bullish trend.
On the downside, he identified the 24,770–24,500 zone as immediate support, while the bullish gap around 24,300 remains a crucial support level.
On the upside, 25,150 could act as an intermediate hurdle, followed by resistance near 25,400.
Looking ahead, Krishan advised traders to adopt a stock-specific approach, particularly during the festive season and the truncated trading week. With the market having rallied sharply and technical indicators showing overbought conditions, he recommended a conservative approach and disciplined risk management.
"With most of the easy gains already captured, selective participation and prudent position sizing will be key," he said.
Rajesh Bhosale, Technical Analyst at My Advisor Alpha, said the sharp market recovery was driven by a combination of favourable global developments, aggressive foreign institutional buying and the unwinding of accumulated short positions.
He attributed the rally to the Democrats' sweeping victory in the US midterm elections, securing control of both the House and the Senate, which raised hopes of an early resolution to the US-Iran conflict. This triggered a sharp decline in crude oil prices from their six-month highs, providing significant relief to an oil-importing economy such as India.
Bhosale also highlighted the return of foreign investors, who had been persistent sellers through October, noting that they purchased around ₹15,000 crore worth of Indian equities on Thursday alone. The unwinding of short positions further amplified the rally.
He said market sentiment had undergone a sharp turnaround in just a few weeks. The Nifty 50, which was struggling near its multi-year swing low of 22,200–22,500, has now reclaimed 25,000 and moved decisively above its major moving averages.
The index has also confirmed a bullish double-bottom breakout, while its daily Relative Strength Index (RSI) has surged above 78 from below 40 in just a week, indicating strong upward momentum.
"Given the pattern breakout, the positive momentum is likely to continue. However, after such a sharp rally and with overbought conditions in place, traders should adopt a buy-on-dips approach," Bhosale said.
He identified 24,800 as immediate support, which also marks the breakout zone. On the upside, 25,400–25,500 is the key resistance band. A decisive move above this zone could open the way towards 26,000 and fresh all-time highs.
Bhosale added that the latest rally was largely driven by heavyweight stocks, while participation from the mid-cap segment remained relatively limited. Going ahead, he expects the Nifty to consolidate after its sharp gains, with individual stocks, particularly mid-caps, potentially leading the next leg of the rally.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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