Indian stock market benchmarks, the Nifty 50 and the Sensex, are expected to commence trading on November 6, 2025, with slight gains, mirroring positive cues from global markets.

Global Market Influences

Asian markets displayed a positive trend, buoyed by Wall Street's gains, which were spurred by strong corporate earnings and encouraging private payroll data in the US. Investors are also closely monitoring jobless claims data from the US and the Bank of England's interest rate decision. European markets, however, exhibited weakness, indicating a cautious global risk appetite that may temper aggressive buying in domestic equities.

** domestic Market Dynamics**

The Gift Nifty was trading around 25,735, a premium of nearly 27 points from the Nifty futures' previous close. On the domestic front, market participants are awaiting the release of the HSBC Composite PMI Final and the HSBC Services PMI Final data for October 2025.

On Tuesday, November 4, the Indian stock market closed sharply lower, with the Nifty 50 breaching the 25,600 level. The Sensex fell by 519.34 points, or 0.62%, to close at 83,459.15, while the Nifty 50 settled 165.70 points, or 0.64%, lower at 25,597.65.

Analyst Perspectives

Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted that the Sensex is exhibiting a lower top formation on intraday charts and has formed a bearish candle on daily charts, suggesting potential for further weakness. He anticipates that as long as the Sensex remains below 83,750, a weak sentiment is likely to persist, potentially leading to a decline towards 83,300, with further weakness possibly dragging it to 83,000-82,800. Conversely, a move above 83,750 could trigger a bounce back to 84,100 and 84,400. Chouhan advises day traders to adopt a level-based trading strategy due to the current market volatility.

Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking, pointed out that Nifty's open interest (OI) data indicates the highest call writing at the 25,700 strike and the maximum put OI concentrated at the 25,600 strike, suggesting firm resistance near the 25,700 level.

Technical Analysis and Outlook

Analysts anticipate a continuation of the consolidation phase, even after the Nifty 50's corrective decline of over 500 points in the last nine sessions. Key support levels for the Nifty are identified around 25,500–25,300, with immediate resistance at 25,800. A sustained move above 25,700 is deemed essential to revive bullish momentum, while failure to hold above the 25,500 zone could lead to further near-term weakness.

Sectoral Performance

On November 4, all sectoral indices registered losses, indicating widespread weakness. The Nifty Metal and Nifty IT indices were among the top losers, each falling by over 1%. The Nifty Auto index also experienced a decline of 0.86%.

FII Activity

Foreign institutional investors (FIIs) have been reducing their exposure to Indian consumer stocks, shifting towards defensive and export-oriented stocks amid concerns about slowing income growth and muted rural demand. Continued FII outflows could limit recovery attempts, while strong domestic institutional investor (DII) support may help keep the markets range-bound.

Overall Market Sentiment

The overall market sentiment appears cautious, influenced by global cues, FII outflows, and technical factors. While positive global cues may provide a slight initial boost, sustained bullish momentum will likely depend on overcoming key resistance levels and a revival of investor confidence.

Disclaimer: This article is for informational purposes only and should not be considered investment advice. Consult with a qualified financial advisor before making any investment decisions.