Indian stock markets are poised for a potentially significant upswing as they reopen on Thursday, October 23, 2025, following the Diwali Muhurat Trading session and the Diwali Balipratipada holiday. The Gift Nifty futures are signaling a gap-up start, and expectations are high that the Nifty 50 could reach a new all-time high.
Gift Nifty Signals Strong Opening
The Gift Nifty futures jumped significantly on Wednesday, climbing 385 points, or 1.48%, to hit an intraday high of 26,308. As of late Wednesday, Gift Nifty futures were trading 1.26% higher at 26,250 points compared to Tuesday's close of 25,923. This surge indicates a strong possibility of a massive upside for the Indian market.
India-US Trade Deal Optimism
Investor sentiment is buoyed by the progress in India-US trade negotiations, with expectations of a potential bilateral trade deal. Mint reported earlier that the long-awaited trade deal could reduce Trump tariffs on all Indian goods imports to 15-16%, a substantial decrease from the current 50%.
Nifty 50 Eyes Record High
With the Nifty 50 index closing at 25,868.60 on Tuesday and currently just 1.5% away from its all-time high, a fresh peak is within reach. Harshal Dasani, Business Head, INVAsset PMS, noted the strong optimism in the market over the last five sessions. He believes the Nifty 50 can potentially hit a new all-time high if the current momentum is sustained.
Dasani also highlighted the factors supporting this optimism: a resilient Indian macro setup, moderating inflation, a stable rupee, and record foreign exchange reserves exceeding $688 billion. The market is also being buoyed by expectations of further rate cuts by the Reserve Bank of India in early 2026, alongside consistent domestic inflows through SIPs and robust corporate profitability.
Trading Strategy and Stock Recommendations
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Nifty is poised to test 26,300 levels in the coming days. Parekh added that the index has important support near the trendline zone at the 25,400 level, which needs to be sustained to maintain the bias intact. With the undertone being strong, further gains can be expected.
While specific stock recommendations were not available in the provided context, investors are generally advised to consider a "buy on dips" strategy for Nifty.
Factors to Watch
Traders should monitor follow-through buying in large-cap banks and capital goods stocks to confirm a breakout. The ongoing earnings season and policy signals from major global central banks will also influence market direction. Additionally, global cues and the trend in Foreign Institutional Investor (FII) flows will play a crucial role.
