Domestic equity indices staged a strong comeback just ahead of the festive season, breaking free from weeks of relentless selling pressure. During the trading week spanning October 26 to October 30, robust buying across frontline counters lifted key benchmarks significantly higher. The BSE Sensex recorded an impressive weekly surge of 1,335.70 points to settle at 74,459.53. In tandem, the NSE Nifty 50 advanced 453.10 points over the week to conclude at 23,053.10.
Sharp 665-Point Turnaround from Weekly Troughs
The trading week originally began on a turbulent note, with heavy opening-session liquidation dragging the Nifty 50 down to a trough of 22,387.35. That sharp dip attracted domestic institutional investors and retail participants, whose sustained accumulation engineered a 665-point turnaround from the lowest point of the week. From a technical perspective, the benchmark index established solid footing near its 200-week exponential moving average (EMA) alongside its multi-year upward trendline, signaling an encouraging structural reversal on the long-term charts.
Pharma and Technology Lead Sectoral Recovery
The revival in market momentum was primarily driven by aggressive accumulation in pharmaceutical counters and select information technology names. Among sector indices, the Nifty Pharma index emerged as the week's undisputed leader, delivering gains of approximately 7.09 percent. Substantial upside was also observed across the media index, which gained 4.34 percent, and the realty index, advancing 3.77 percent. Broader participation extended into metal, automotive, fast-moving consumer goods, and public sector banking counters, all posting weekly gains in the range of 2 to 3 percent.
Crucial 23,200 Hurdle and Pathway toward 24,000
Chart patterns indicate that 23,200 represents the most critical immediate hurdle for the benchmark to sustain its upward momentum. A decisive close above 23,200 in the upcoming sessions could trigger widespread short covering, paving the way toward 23,700 and potentially the milestone mark of 24,000. Conversely, if selling resumes, the index will look to 22,850 as initial downside support, while the 22,600 to 22,400 band, backed by the 200-week EMA, serves as the decisive safety net.
High Crude Prices and Geopolitics Pose Ongoing Risks
Despite technical improvements on domestic charts, external headwinds remain a primary consideration for market participants. Brent crude recently traded above 117 dollars per barrel, a level that threatens domestic inflation metrics and dampens foreign capital flows if elevated prices persist. Furthermore, geopolitical frictions between the United States and Iran, alongside the upcoming United States mid-term elections, will serve as major determinants of international risk appetite. Given these conflicting forces, market participants continue to favor a disciplined buy-on-dips strategy rather than chasing sharp intraday rallies.
