As per Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, Nifty ended higher by 171 points at 25,966 (+0.7%), tracking gains in US markets as softer-than-expected U.S. inflation data (3.0% YoY in Sep’25 vs expected 3.1%) boosted expectations of Fed rate cut in the upcoming policy meet this week.

Further, there was optimism around progress in trade negotiations between US and China with the two countries expected to sign a deal soon. FII buying on Friday to the tune of Rs621.5 crore, added to positive market sentiments. The broader market witnessed buying interest with Nifty Midcap100 and Smallcap100 rising by 0.9% and 0.6% respectively. Most sectoral indices ended in the green. Realty, PSU Bank, Oil and gas and Metal stocks led the gains, up between 1-2% each; reflecting strong momentum in cyclical and rate-sensitive sectors. 

The Defence Acquisition Council (DAC) has approved capital acquisition proposals worth INR790b for the Indian Army, Navy, and Air Force, suggesting continued government focus on the defence sector. With the existing emergency procurement pipeline and expectations of higher budgetary allocation for defence capex, we expect the sector to continue to benefit from a larger addressable market and finalization of orders over the next few years. On the macro front, investors would closely track India’s Industrial Production and US consumer confidence data to be released on Tuesday.

With the Q2 earnings season in full swing, markets are likely to witness sector/stock-specific movements in reaction to the result announcements and management updates. Key results on Tuesday include TVS Motor, Tata Capital, Jindal Steel, CAMS amongst others. Overall, we expect the market to witness a gradual up-move on the back of strong global cues, renewed FII buying and expectation of healthy corporate earnings.  

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As per Bajaj Broking, Indian equity benchmarks ended the session on a strong note on October 27, with the Nifty closing near 25,950, posting a firm finish ahead of the October F&O expiry. Softer-than-expected U.S. CPI data fueled expectations of a potential Fed rate cut this week, bolstering investor sentiment. Meanwhile, optimism over progress in U.S.-China trade talks further supported a broad-based market rebound.

At the close, the Sensex gained 566.96 points, or 0.67%, to end at 84,778.84, while the Nifty advanced 170.9 points, or 0.66%, to settle at 25,966.05. On the broader market front, the Midcap index climbed 0.9%, and the Small-cap index added 0.8%. 

Sectorally, barring media, pharma & healthcare, all indices closed higher, with notable strength of 1–2% seen in metal, PSU bank, oil & gas, and realty spaces. 

Nifty Outlook

The index formed a bullish candle with a higher high and higher low, highlighting rebound after two sessions of corrective decline.

Going ahead, a sustained move above last week's high 26100 levels will open up further upside towards 26,300 & 26,500 levels in the coming sessions. Failure to do so will lead to extension of the last three sessions consolidation in the range of 26,100–25,600. We believe a consolidation phase will help the index work off the overbought condition developed in the daily chart after a 1500 points up move in the preceding 4 weeks.

On the downside, key support is placed at the 25,500–25,700 zone being the confluence of the 38.2% Fibonacci retracement of the recent rise (24,587–25,782) and the earlier breakout level. Dips should be seen as a buying opportunity. 

Bank Nifty Outlook

Index recouped its entire previous session decline as it formed a bullish candle with a higher high and higher low highlighting rebound after two sessions of corrective decline

Going forward, the index sustaining above last week's high 58577 will signal extension of the recent rally towards 59000 and 59300 levels in the coming sessions being the 138.2% retracement of the entire previous decline (57628-53561). Failure to move last week high will signal a phase of consolidation in the range of 58600-57300

Index has immediate support placed at 57,300-57500 levels being the last week breakout area and a stronger demand zone is seen near 56,800-56,500 levels.

The daily stochastic signaling consolidation likely in the coming sessions, thus forming a base for the next leg of up move. We believe the current breather should be used as a buying opportunity in quality banking stocks.

As per Ashika Institutional Equities, Indian equities opened the week on a firm footing, supported by easing US–China trade tensions and renewed optimism over a potential trade deal. The Nifty index climbed towards the 26,000 mark but faced resistance at that level, eventually consolidating its gains. Sector-wise, buying interest was prominent in PSU Banks, Realty, Oil & Gas, Infrastructure, and Metal stocks, while weakness persisted in Pharma, Healthcare, and Media counters. On the derivatives front, market sentiment leaned bullish, with 158 stocks advancing against 56 declining. Notably, the highest open interest buildup was seen in Indus Towers, SRF, SBI Life, Alkem, and Sona Comstar, indicating active participation in these counters. Overall, the market tone remained constructive, though participants may watch the 26,000 level as a key near-term resistance.