NIFTY 50 closed at 24,536.60 (+2.40%) | BANK NIFTY gained 3.33% | FII buying strengthens | US technology sell-off poses a risk
Indian equity markets ended Thursday with a strong rally, supported by aggressive foreign institutional buying and broad-based participation across Banking, Financial Services and Auto stocks which were missing in the first few days of the rally. BANKNIFTY's advancement is especially a good sign. NIFTY MIDCAP and SMALLCAPs are yet to find their stride.
NIFTY gained 576 points, closing at 24,536.60, while BANK NIFTY advanced 3.33%.
The technical picture has improved considerably. On 03 November 2026, NIFTY broke above the 24,350–24,400 neckline of the Reverse Head & Shoulders formation, marking an important development in the short-term trend. However, the sharp overnight sell-off in US technology stocks presents a fresh challenge. Friday's session will test whether domestic buying can sustain the breakout despite weaker global sentiment.
Indian Stock Market – Closing Overview (05 November 2026)
| Index | Closing Value | Change |
|---|---|---|
| SENSEX | 79,310.01 | +2.60% |
| NIFTY 50 | 24,536.60 | +2.40% |
| BANK NIFTY | 57,773.65 | +3.33% |
| NIFTY NEXT 50 | 71,768.65 | +1.38% |
| NIFTY MIDCAP 100 | 60,620.90 | +1.87% |
| NIFTY SMALLCAP 100 | 19,132.45 | +0.56% |
| NIFTY 500 | 23,224.70 | +2.00% |
| India VIX | 15.58 | +2.57% |
The recovery was broad-based, with Financials and Auto stocks leading the advance. BANK NIFTY outperformed NIFTY, while Midcaps and Smallcaps also ended higher.
India VIX increased by approximately 2.57% to 15.58, suggesting that expectations of market volatility have not disappeared despite the strong rally.
Our analysis: The participation from banking and broader market stocks is encouraging. However, the rise in VIX indicates that traders are not entirely comfortable with the current market environment.
NSE Sectoral Performance – Auto & Financials Lead
Thursday's rally was led by Auto, Financial Services, Capital Markets and Banking stocks.
Of the 42 NSE sectoral and thematic indices tracked in the available market data, 35 advanced.
Sector-wise Closing Prices and Percentage Changes
| NSE Sectoral Index | Close | Change |
|---|---|---|
| Capital Markets | 5,646.30 | +4.25% |
| Financial Services Ex-Bank | 31,212.80 | +4.24% |
| Auto | 27,601.75 | +4.14% |
| Financial Services | 26,600.45 | +3.99% |
| Tourism | 8,297.30 | +3.89% |
| Transportation & Logistics | 25,814.50 | +3.85% |
| Realty | 895.90 | +3.52% |
| Private Bank | 28,582.80 | +3.44% |
| Bank | 57,773.65 | +3.33% |
| Cement | 14,493.30 | +3.36% |
| PSU Bank | 8,561.85 | +3.13% |
| IT | 32,837.85 | +2.42% |
| Consumer Durables | 37,369.55 | +2.32% |
| Pharma | 27,607.60 | +1.00% |
| Metal | 12,595.10 | +0.87% |
| FMCG | 46,472.15 | +0.45% |
| Oil & Gas | 11,216.65 | +0.34% |
| Energy | 36,884.45 | -0.52% |
| Media | 1,696.20 | -0.84% |
| Defence | 9,012.05 | -1.69% |
What stood out?
- Auto was among the strongest major sectors, gaining 4.14%.
- Capital Markets and Financial Services Ex-Bank gained over 4%.
- Banking strength was broad-based, with Private Banks gaining 3.44% and PSU Banks gaining 3.13%.
- Realty advanced 3.52%, reflecting improved risk appetite.
- IT gained 2.42% during Thursday's domestic session, but faces fresh pressure from the overnight US technology sell-off.
- Energy, Media and Defence were among the sectors that declined.
The rally was led by sectors with significant domestic market exposure; this is important since it suggests that Thursday's recovery was not solely dependent on global technology stocks. Friday's session will tell us whether this sectoral leadership can withstand the external pressure.
NIFTY 50 Technical Analysis
NIFTY's move above the 24,350–24,400 resistance zone on 05 November is an important technical development. The 576-point advance on Thursday (05th Nov) also have some other technical indicators supporting the improving trend:
- 9 & 21 EMA: Bullish crossover remains intact, with the 9-day EMA above the 21-day EMA.
- 50 & 100 EMA: NIFTY has reclaimed both moving averages, strengthening the short-term recovery structure.
- Bollinger Bands: Price is approaching the upper band, indicating strong momentum but also an increased possibility of consolidation.
- Ichimoku Cloud: Price has moved above the Kumo Cloud, supporting a bullish interpretation.
- RSI (14): Approaching the 65–70 zone, indicating strong momentum with limited room before overbought conditions become more pronounced.
NIFTY 50 Support & Resistance Levels – 06 November
| Resistance Levels | Support Levels |
|---|---|
| 24,800 | 24,400 |
| 24,700 | 24,350 |
| 24,580 | 24,296 |
The immediate hurdle is 24,580. A sustained move above this level could open the way towards 24,700 and 24,800.
On the downside, 24,350–24,400 is now the important zone to defend. A move below the neckline would weaken the breakout structure and increase the possibility of profit booking.
We would prefer to see NIFTY sustain above the breakout zone rather than chase the rally after Thursday's sharp advance.
FII & DII Activity – Foreign Investors Turn Aggressive Buyers
Institutional activity was one of the strongest positives on Thursday.
Cash Market Activity – 05 November 2026
| Institutional Category | Net Activity |
|---|---|
| FII | +₹14,974.68 Crore |
| DII | -₹10,444.54 Crore |
| Net Institutional Buying | +₹4,530.14 Crore |
FIIs have turned aggressive buyers in the cash segment over recent sessions, reversing the selling pressure witnessed during the preceding weeks.
DIIs, meanwhile, were net sellers, indicating that domestic institutions may have used the rally to book profits or rebalance portfolios.
While the return of foreign buying is encouraging, particularly when viewed alongside NIFTY's technical breakout.
BANK NIFTY – Financial Stocks Remain Market Leaders
BANK NIFTY gained 1,860.05 points (+3.33%) to close at 57,773.65. The banking index outperformed NIFTY, while both Private Bank and PSU Bank indices recorded strong gains.
| Banking Index | Closing Value | Change |
|---|---|---|
| BANK NIFTY | 57,773.65 | +3.33% |
| NIFTY Private Bank | 28,582.80 | +3.44% |
| NIFTY PSU Bank | 8,561.85 | +3.13% |
Crude Oil, USD/INR, Gold & Silver
Brent Crude – Weekly Correction Offers Relief to India
Brent crude has declined approximately 16% from its 30 October closing level to its 05 November settlement, before recovering sharply on Thursday. Brent settled at approximately $98.29 per barrel on 05 November, gaining 3.88% during the session however this has not yet meaningfully eaten into the 16% decline.
For India, sustained lower crude prices:
- Reduces the country's oil import bill.
- Eases inflationary pressure.
- Supports the Indian Rupee.
- Reduces input costs for aviation, paints and selected chemical companies.
This remains an important variable for Indian markets since a resolution of the situation is yet to be reached by who's who of the globe.
USD/INR – Rupee Stability
The rupee has shown signs of stabilisation amid lower crude prices and improving foreign investment flows. Sustained FII inflows could provide additional support, although global dollar movements and crude prices remain important factors.
Gold & Silver – Safe-Haven Demand
Gold and Silver continue to attract attention amid heightened global equity volatility. MCX Gold December futures were reported at ₹1,44,768 per 10 grams, gaining ₹1,534 (+1.07%) in the supplied market snapshot.
Silver also recorded gains alongside the broader safe-haven demand.
Global Markets – US Technology Sell-Off Raises Concerns
US markets witnessed a sharp reversal on Thursday, with technology and semiconductor stocks leading the decline.
| US Index | Closing Level | Change |
|---|---|---|
| S&P 500 | 7,353.73 | -4.40% |
| Nasdaq Composite | 24,315.00 | -5.50% |
| Dow Jones | 51,523.06 | -3.40% |
The Nasdaq recorded its steepest daily decline in 19 months, entering correction territory after falling more than 10% from its October record & this sell-off was particularly severe in semiconductor and AI-related stocks.
Nvidia declined over 9%, while the Philadelphia Semiconductor Index fell approximately 12%.
The selling also affected AI infrastructure and data-centre companies, including CoreWeave and other related stocks. The concerns are linked to the potential impact of regulatory changes on AI infrastructure investments, alongside questions about the returns expected from the massive capital expenditure in the sector.
What this means for India:
- Indian IT stocks could face pressure.
- Global risk appetite could weaken.
- Foreign portfolio flows may become more sensitive to global developments.
- Domestic Banking and Auto strength could help offset some of the pressure.
The important distinction is that India's recent rally has been driven largely by domestic financial and consumption-linked sectors, while the US sell-off is concentrated in technology and AI-related businesses.
Pre-Market Outlook – What to Expect on 06 November 2026
The domestic market structure has improved, but global developments have introduced fresh uncertainty. Leading into Friday, here are the factors to keep an eye out on / be aware of.
End of week - may see some profit booking & Options traders are requested to be weary of a lot of Theta decay; especially for overnight positions.
Positive Factors
- Strong FII cash-market buying.
- NIFTY's breakout above 24,400 on 05 November.
- BANK NIFTY outperforming NIFTY.
- Strong Auto and Financial Services performance.
- Positive participation from Midcaps and Smallcaps.
- Weekly correction in crude prices.
Risk Factors
- Sharp US technology and semiconductor sell-off.
- Weak global risk appetite.
- Possibility of profit booking after Thursday's 2.40% rally.
- Recovery in crude prices amid geopolitical uncertainty.
- Rising India VIX.
Key Levels to Watch
| Market Scenario | NIFTY Level |
|---|---|
| Immediate Resistance | 24,580 |
| Next Resistance | 24,700 |
| Further Upside Reference | 24,800 |
| First Support | 24,400 |
| Important Breakout Support | 24,350 |
| Previous Session Low | 24,296 |
Our approach: We would avoid chasing the opening move. BANK NIFTY's relative strength, continued FII buying and the performance of Auto and Financial Services will be important indicators.
In this supremely bullish market, it is important to wait for entry rather than try to participate in the rally when it is already in full swing. It has moved to a buy on raise market and our money management, patience and ability to take positions on dips will be paramount to our ability to become and remain profitable.
Research Analyst Details
S. Harish Chandan
SEBI Registered Research Analyst
SEBI Registration No.: INH000012768
BSE Enlistment No.: 5826
Website: https://raharishchandan.com
Contact: +91 88944 66882
Disclaimer
This market commentary is prepared for informational and analytical purposes only. It is not an offer, solicitation or recommendation to buy, sell or hold any securities or financial instruments.
The views and observations expressed are based on publicly available information and market data considered at the time of preparation. Market conditions can change, and past performance is not indicative of future results.
Investors should conduct their own due diligence and consult their financial advisers before making investment decisions. Derivatives and leveraged trading involve substantial risk and may not be suitable for all investors.
Please refer to the applicable research disclosures and terms published on our website.
Reference Websites for further data & study:
NSE India – Live Equity Market: https://www.nseindia.com/market-data/live-equity-market
NSE India – Historical Index Data: https://www.nseindia.com/reports-indices-historical-index-data
NSE India – Participant-wise Open Interest: https://www.nseindia.com/all-reports-derivatives
NSE India – Option Chain: https://www.nseindia.com/option-chain
NSE Indices – NIFTY 50 Factsheet: https://www.niftyindices.com/Factsheet/ind_nifty50.pdf
NSE India – Corporate Filings and Financial Results: https://www.nseindia.com/companies-listing/corporate-filings-financial-results
Reliance Industries – Investor Relations: https://www.ril.com/investors
BSE India – Corporate Announcements: https://www.bseindia.com/corporates/ann.html
SEBI – Official Website: https://www.sebi.gov.in/
NSDL – FPI Investment Statistics: https://www.fpi.nsdl.co.in/web/Reports/Latest.aspx
CDSL – FPI Statistics: https://www.cdslindia.com/Publications/ForeignPortInvestor.html
PPAC (Petroleum Planning & Analysis Cell), Ministry of Petroleum & Natural Gas: https://ppac.gov.in/
Ministry of Commerce & Industry – Trade and Economic Data: https://commerce.gov.in/
RBI – Database on Indian Economy: https://data.rbi.org.in/
