Nifty Prediction For October 27: Will It Cross 26,000 Amid Bullish Run? Fed Meet, Q2 Earnings To Watch
Indian stock markets are gearing up for a week potentially filled with volatility, as the October 27 session approaches amid a prevailing bullish sentiment. Investors are keenly awaiting the confluence of significant events, including the U.S. Federal Reserve's policy meeting, the ongoing Q2FY26 earnings season, and crucial trade developments.
Nifty's Technical Outlook
The NSE Nifty 50 index closed at 25,795.15 on October 24, a decline of 0.37%. Despite the day's dip, the short-term trend for Nifty remains firmly bullish, staying above key short-term moving averages. Immediate support is pegged at 25,700, followed by 25,600, while resistance is expected in the 25,950 to 26,000 range. A sustained rally is anticipated if Nifty surpasses the 25,850 mark, potentially paving the way towards 26,000-26,200.
Analysts suggest that the continuation of a bullish pattern, characterized by higher tops and bottoms on the daily chart, remains intact as long as the index trades above 25,600. A breach below 25,670, however, could trigger a sharper decline towards 25,500 and 25,400.
US Federal Reserve Meeting
The U.S. Federal Reserve's policy meeting on October 28 and 29 is a major focal point. Expectations are rife that the Fed might reduce its benchmark interest rate to stimulate economic growth. A dovish stance from the Fed could amplify global risk sentiment, potentially triggering fresh buying in Indian equities. Historically, rate hikes by the U.S. Federal Reserve have led to market corrections, while dovish policies have boosted investor confidence. Nifty reacts strongly to Fed rate decisions as they affect global liquidity, FII inflows and risk appetite.
Q2 FY26 Earnings Season
The Q2 FY26 corporate earnings season is well underway and will likely heavily influence market sentiment. Several major companies are slated to announce their results, including Kotak Mahindra Bank, IOC, Larsen & Toubro, Hindustan Petroleum, ITC, Cipla, Dabur, Maruti Suzuki, Bharat Electronics, and ACC. Investors will be scrutinizing these results for insights into sectoral trends and overall corporate profitability.
Trade Deal Developments
Developments surrounding potential trade deals, particularly between India and the U.S., and the U.S. and China, are also on investors' radars. A trade agreement between India and the U.S. could ease the 50% tariffs currently imposed on some Indian exports, a significant portion of which are retaliatory measures for Russian oil imports. Optimism is building that the meeting between President Trump and President Xi Jinping could lead to a breakthrough in U.S.-China trade relations.
Other Factors
Shifts in crude oil dynamics are also expected to play a role. Following sanctions on Russian oil majors by the U.S. and EU, crude oil prices have risen, sparking concerns about tighter global supply and rising inflation risks. Foreign Institutional Investors (FII) activity will also be a key factor. On October 24, 2025, FIIs were net buyers of Indian equities, purchasing shares worth ₹621 crore.
Analyst Views
Analysts predict range-bound movement for the Sensex and Nifty 50, characterized by selective buying and profit-booking. Despite recent profit booking, the underlying trend of Nifty continues to be positive. Immediate resistance is placed at 25,950, followed by 26,000 and 26,100.
Given these factors, the Nifty 50's potential to cross the 26,000 mark on October 27 hinges on a complex interplay of domestic and global cues. The Fed's stance, earnings reports, and trade deal progress will be pivotal in shaping market direction.
