Indian stock markets experienced another day of fluctuating trade on Tuesday, October 7, 2025, with benchmark indices Sensex and Nifty 50 managing to extend their upward momentum for the fourth consecutive session. The rally was largely fueled by buying activity in blue-chip bank stocks and support from domestic institutional investors.
The 30-share BSE Sensex closed at 81,926.75, gaining 136.63 points, or 0.17%, after a day of volatile trading. During the session, the index touched a high of 82,309.56, up 519.44 points or 0.63%, before profit-taking at higher levels curbed the gains. The Nifty 50 also saw a positive close, gaining 30.65 points, or 0.12%, to finish at 25,108.30.
Sectoral performance was broadly positive, with 12 out of the 16 major sectors showing gains. Broader market indices also reflected this positive sentiment, with mid-cap and small-cap indices increasing by 0.5% and 0.3%, respectively. The financial sector, in particular, continued its strong performance, advancing for the sixth straight session, with HDFC Bank and ICICI Bank, two of India's largest private lenders, rising by 0.9% each.
Trade Setup for Wednesday
Technical analysts suggest a potential pause in the recent bullish momentum. Vatsal Bhuva, Technical Analyst at LKP Securities, noted that Nifty 50 faced selling pressure near its resistance zone of 25,200–25,250. This could lead to a short-term consolidation. However, the outlook remains positive as long as the index holds above the 24,900 level, where its 50-day EMA is situated.
In the derivatives market, significant open interest additions were observed at the 25,000 put and 25,200 call strikes, indicating active participation from both call and put writers. Consequently, Nifty 50 is expected to trade in a range of 24,950–25,300, with support at 24,950–25,000 and resistance at 25,250–25,300.
Ashika Institutional Equities suggests that the Nifty 50 has successfully surpassed the key psychological and technical resistance level of 25,000, indicating a decisively positive market structure. Any pullback towards the 25,000 zone is anticipated to serve as a strong support level, with immediate resistance targets set at 25,200 and 25,500. For the Bank Nifty, support is positioned between 56,000 and 55,900, while resistance levels are identified at 56,500 and 57,000.
Global and Domestic Cues
Vinod Nair, Head of Research at Geojit Investments, mentioned that the domestic equity market opened positively, supported by favorable global cues and anticipation surrounding the upcoming earnings season. However, investors are also keeping a close watch on developments related to US President Donald Trump's tariff policies, progress on the US-India trade deal, and the trend of foreign institutional investor (FII) sell-offs.
FII and DII Activity
FIIs continued to offload Indian equities, with net sales of ₹313.77 crore on October 6. So far in October, foreign investors have net sold equities worth ₹3,502.34 crore. On the other hand, Domestic Institutional Investors (DIIs) have been on a buying spree, purchasing Indian equities worth ₹5,036.39 crore on October 6. DIIs have net purchased equities worth ₹8,442.29 crore so far in October.
Gold Prices
On October 7, gold prices edged higher. The price of 24 karat gold was ₹12,078 per gram, 22 karat gold was around ₹11,071 per gram, and 18 karat gold was ₹9,059 per gram.
Stocks to Buy or Sell
- Gravita India Ltd: Ganesh Dongre recommends buying Gravita India share price at ₹1,544 with a stop loss at ₹1,510 and a target of ₹1,590.
- Avalon Technologies Ltd: According to Bagadia, buy Avalon Technologies share price at ₹1,130, keeping a stop loss at ₹1,090, with a target of ₹1,212. Investors may find a good opportunity for swing trading with a short-term target of ₹695+, and a strict stop-loss under 625.
