Indian stock markets are expected to open cautiously on November 3, 2025, following a volatile week and mixed global cues. The GIFT Nifty suggests a negative start for benchmark indices.

Global Cues and Expectations:

• Mixed Global Signals: Asia-Pacific markets are trading mixed, while Wall Street closed higher on Friday, buoyed by Amazon's earnings. However, concerns linger about the Federal Reserve's stance on interest rate cuts. Investors are also awaiting key manufacturing data from China and reports from the U.S. on auto sales, household debt, and manufacturing performance.
• US-China Trade Tensions: A summit between Trump and Xi offered only a temporary pause in trade tensions, leaving macroeconomic uncertainties unresolved.

Indian Market Performance and Analysis:

• Recent Performance: On the last trading day, the Nifty 50 closed at 25,722.10, down by 155.75 points or 0.60%, while the Sensex ended at 83,938.71, a loss of 465.75 points or 0.55%. This marked the end of a four-week winning streak, with profit booking observed.
• Technical Analysis: Technical analysis indicates a predominantly bearish outlook for the Indian equity market. Both Nifty and Bank Nifty have confirmed double top formations on daily charts, signaling distribution and bearish momentum.
• Analyst Views: Analysts anticipate a range-bound market with a positive bias, contingent on global developments and foreign fund flows. The near-term outlook remains constructive, supported by steady foreign inflows and improving global risk appetite.
• Support and Resistance Levels:
  • Nifty 50 is expected to find support around 25,600-25,700 and resistance around 25,850-26,000. A break below 25,700 could dampen buyer sentiment.
  • Sensex is likely to find support around 83,700-83,900, with resistance at 85,000-85,300.
  • Bank Nifty is expected to consolidate within the 57,500-58,500 range. Support is likely to be placed at 57,300 and 57,500.
• Open Interest Data: The maximum Nifty Call Open Interest (OI) is concentrated at the 25,800 and 25,900–26,000 strike levels, suggesting strong resistance at higher zones. On the downside, the maximum Put Open Interest is seen at the 25,700 and 25,600–25,500 strike levels, highlighting strong support zones.

FII and DII Activity:

• On the last trading day, Foreign Institutional Investors (FIIs) net sold shares worth ₹6,728.08 crore, while Domestic Institutional Investors (DIIs) purchased shares worth ₹6,889.33 crore.
• However, for the month of October, FIIs have been net buyers, purchasing $1.94 billion worth of domestic shares.

Sectoral Outlook:

• All 16 major sectors recorded gains in October. Financial services, banks, and private lenders saw increases between 4.3% and 6%, while the IT sector experienced a rise of 6.1%.

Key Factors to Watch:

• US Federal Reserve's rate decision.
• Corporate earnings announcements from key companies like ITC, NTPC, Adani Power, DLF and Hyundai Motor.
• Global developments and foreign fund flows.
• Manufacturing activity data from China.
• US reports on auto sales, household debt, and manufacturing performance.
• HSBC Manufacturing PMI Final for October.

Overall Sentiment:

The Indian stock market is likely to begin November 3, 2025, with a cautious to negative bias. Technical indicators suggest potential for further correction, but analysts maintain a positive outlook contingent on global cues, FII flows, and corporate earnings. Investors are advised to monitor key support and resistance levels and remain vigilant about global economic developments.