Indian benchmark indices closed lower on October 31st , with the Nifty slipping below the 25,750 marks. Following a strong rally, markets have entered a phase of profit booking, with most positive economic developments already priced in. Meanwhile, the Trump–Xi summit yielded merely a short-lived pause in the U.S.–China trade tensions, providing little reassurance to investors and maintaining a cloud of macroeconomic uncertainty.

At close, the Sensex was down 465.75 points or 0.55 percent at 83,938.71, and the Nifty was down 155.75 points or 0.60 percent at 25,722.10. Sector-wise, the PSU Bank index advanced 1.5%, whereas power, metal, and media indices slipped around 1% each. IT, private bank, and healthcare indices also ended lower by about 0.5% each. The Midcap index declined 0.45%,while the Small-cap index fell 0.48%.

Nifty Outlook

Nifty on the weekly chart has formed a second consecutive shooting star candle in the weekly chart highlighting consolidation amid stock specific action. The broader market trajectory continues to exhibit a bullish bias, reaffirming that the primary uptrend remains firmly in place. The ongoing phase of consolidation is best interpreted as a healthy retracement and time correction following a sharp 1,500-point up move in four weeks.

Bajaj Broking believes the current breather should be used to accumulate quality stocks in a staggered manner for up move towards the last week high of 26100 and previous all-time high of 26277. Strong support is seen around 25,500–25,300, which is likely to hold as it is the confluence of the recent breakout zone, key retracement of previous up move and 20 days EMA.

Also Read: Ashika Institutional & Bajaj Borking Market Closing Commentary

Bank Nifty Outlook

The index formed a second consecutive bear candle with a lower high and lower low signaling profit booking at higher levels. Going ahead, index to extend consolidation of the last two weeks in the range of 57500-58500 thus forming base after the next leg of up move. A decisive move above last two week’s high of 58,577 would confirm a breakout continuation, paving the way for a rally towards 59,000 and 59,300, which correspond to the 138.2% Fibonacci projection of the recent correction (57,628–53,561). On the downside, immediate support is seen around 57,300–57,500, aligning with the previous breakout zone, while a stronger support base lies near 56,800–56,500. Overall, the outlook remains positive, and any pullbacks should be viewed as buying opportunities within these support areas.