Nifty 50 surged 1.50% this week, reaching an all-time high of 26,277.35, while the Sensex gained 1.22%, closing at 85,572. This solid performance is underpinned by a robust economy, providing a strong foundation for continued market gains.
Nifty (+1.50%, 26,179) Sensex (+1.22%, 85,572)
Before diving into the details, let’s look at the key developments fueling this market momentum:
Global Cues
Dow Jones Hits Fresh Record on Friday
The Dow Jones climbed to new heights following the release of the US PCE inflation report— the Fed’s preferred gauge for inflation. This report has strengthened the case for another potential Fed rate cut in November, igniting investor optimism for a soft economic landing.
The CME Group’s FedWatch tool indicates a 52.6% chance of a 50-basis point rate hike at the Fed’s November meeting. This dovish stance has further buoyed investor sentiment.
Key Positive Catalysts from the Past Week
- China’s Stimulus Fuels Global Metal Stocks: China’s stimulus measures, alongside signs of recovery in the Chinese economy, are driving a rally in metal stocks worldwide.
- New Japanese Leadership: Japan’s newly elected prime minister is committed to maintaining lower interest rates, fueling the global dovish sentiment.
- Dovish European Central Bank: The ECB’s dovish stance continues to support market optimism in the region.
- Reserve Bank of India Rate Cut Speculation: There’s increasing speculation that the RBI may follow the Fed’s lead and potentially lower interest rates in the near future.
- Oil Prices Slump: Oil prices dropped 4% this week, now standing at $68.18 per barrel, providing further relief for inflation-sensitive markets.
Commodities – Technical Outlook
Crude
Crude is taking support at 68 levels, a fall below these levels, can indicate a further fall in the prices.
Stocks to benefit from the fall in crude price–
Zinc
ZINC forming a rounding bottom in the chart and looking good for the level of 28,700 as shown below-
Aluminium
Aluminium forming a head and shoulders pattern in the daily chart- looking bullish for the targets of 250.
Keep an eye on the Aluminium & Aluminium Products sector.
Nifty 50 Sectors – Technical Outlook
Let us discuss the Nifty 50 Sector Outlook for the upcoming week-
Nifty Bank
Nifty Bank at an all-time-highs!! However bullish on the private bank space.
Nifty IT
The Nifty IT Index looking bullish for the level of 43,400 as shown in the chart-
According to Nomura, reports-“We expect revenue growth for India’s large-cap IT companies to improve in the financial year 2025-26 (FY26), registering a growth of around 7.9 per cent year-on-year (Y-o-Y) as against FY25’s estimated growth of 3.6 per cent Y-o-Y,”.
Nifty Auto
A bearish divergence in the charts of Nifty Auto-bearish outlook. Keep support at the level of 24,000 levels.
Nifty 50 Radar Stocks
In our last Nifty 50 technical outlook blog, we covered some stocks like Aptus Ltd., which moved around 8% in last 2 weeks. It also got featured in Stocktwits-
Here are some stocks to keep on the radar for this week-
Hindustan Zinc
Hindustan Zinc looking bullish for the 670 levels as per the technical outlook-
Pitti Engineering
A strong fundamental stock with technical indicators indicating a further upmove. Keep on the radar for the target of 1400 and beyond.
Reliance Industries Ltd.
Reliance Industries looking good as per the technical indicators for the levels of 3200-
The Conclusion
The overall market sentiment is bullish. However, Its going to be the start of a fresh month and hence there will be many data points to refer to this week. But, before that, please note that our stock markets will remain closed on Wednesday, October 2nd on account of Mahatma Gandhi Jayanti. Hence, it’s going to be a truncated week ahead.
P.S.- This blog is only for knowledge purposes!! Do your research!!
Happy Trading!!
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