Market has given a nice Diwali gift to everyone in the form of a strong 8 per cent rally last week. The surge in Indian benchmark indices has come at a time when the global markets were beaten down.

The strong rise last week strengthens our bullish case. The momentum is strong. There is room for the indices to rise more. However, we see good chances for an intermediate and a short-lived correction before the next leg of rally happens.

FPIs Buy

The Foreign Portfolio Investors (FPIs) continued to buy Indian equities for the third consecutive week. Indeed, their quantum of purchase also surged last week. The equity segment saw a net inflow of about $4.11 billion last week. The FPI action in the coming weeks will need a close watch. If they continue to buy, then the Sensex and Nifty can move further higher.

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Nifty 50 (25,030.35)

Short-term view: An immediate resistance is at 25,050 which may hold on its first test. Failure to rise past this hurdle can trigger a corrective fall to 24,600 or even 24,300. However, a fall beyond 24,300 is less probable as fresh buyers can come into the market and limit the downside. A bounce either from 24,600 itself or from 24,300 can take the Nifty to 25,100 in the short term.

In case Nifty breaks above 25,050 from here itself, then 25,500-25,700 can be seen this week.

Medium-term view: The rise within the 22,000-26,500 range is happening much faster than expected. At this pace, Nifty can reach 26,500, the upper end of the range much quicker.

We retain our broader positive view. As such, we expect the Nifty to breach 26,500 and rise 28,000 and even 30,000 in the long term.

Failure to breach 26,500 can drag the Nifty down to 25,000 or even lower. In that case, the 22,000-26,500 range will continue to remain intact and the rally to 28,000-30,000 will get delayed further.

Nifty Bank (59,086)

Short-term view: There is some room on the upside from here. Resistance is at 59,700 which can be tested and can cap the upside for now. A reversal from this resistance can drag the Nifty Bank index down to 57,800-57,700.

After this fall, an upward reversal is more likely to be seen. That leg of upmove can take the Nifty Bank index higher to 61,200.

If the break above 59,700 happens in the first attempt itself, then the rise to 61,000 can happen straight away.

Medium-term view: The overall bullish outlook remains intact. The rise to 61,000 mentioned last week could be happening much faster than expected. A decisive break above 61,000 can boost the momentum. That will clear the way for the long-term rally to 68,000-69,000.

Failure to breach 61,000 from here can drag the index down and keep it in a range of 53,000-61,000 for some time. That in turn will delay the long-term rally mentioned above.

Sensex (81,028.02)

Short-term view: Near-term resistance is around 81,100. Next resistance is at 82,000. A rise beyond 82,000 immediately could be difficult. Sensex can turn down from either of these two resistances and see a corrective fall to 78,800-78,500. After this fall, the index can rise back towards 82,000 and go further higher towards 84,000.

In case the Sensex manages to breach 82,000 from here itself, then the rise to 84,000 can happen straightaway.

Nifty Midcap 150 (22,271.15)

The rise to 22,000 mentioned last week has happened much faster than expected. Indeed, the Nifty Midcap 150 index has risen well beyond 22,000.

The region between 22,000 and 21,800 will now be a very good support zone. The Nifty Midcap 150 index can rise to 22,800-22,900 in the short term.

The bounce from the low of 20,336 made in October end and a strong follow-through rise last week keeps the broader bullish view intact. There are good chances to see a rise to 24,000 in the medium term. An eventual break above 24,000 can then clear the way for a fresh rally to 28,000 in the long term.

Nifty Smallcap 250 (17,386.15)

The rise above 17,000 last week has given some relief. But the fall on Friday indicates lack of strong buyers in the market. So, the price action this week will need a close watch.

Support is around 17,000. As long as the index stays above this support, the bias will remain positive. A rise to 18,000 is possible in that case. The region between 17,900 and 18,100 is an important resistance zone. A decisive break above 18,100 is needed to turn convincingly bullish. Such a break can take the Nifty Smallcap 250 index higher to 19,000, going forward.

That in turn will keep our long-term bullish view intact. An eventual break above 19,000 can then take Nifty Smallcap 250 index higher to 23,000 and 24,500 in the long term.

The index will come under pressure again only if it breaks below 17,000. If that happens, a fall to 16,000 can be seen again. It will also keep the danger alive of seeing 15,000 on the downside.

However, such a fall, though less likely, may not alter our long-term bullish view. It will only delay the above-mentioned rally to 23,000-24,500. So, if a fall to 16,000-15,000 happens, then that can be a good buying opportunity from a long-term perspective.

Published on November 7, 2026