Market Commentary Oct 16: Equity Extend Gains; Strong Sectoral Support Fuels Nifty and Sensex Surge

Mumbai, Oct 16, 2025: Domestic equity markets extended their upward trajectory for the second consecutive session on October 16, with benchmark indices scaling fresh multi-month highs, buoyed by sustained buying across sectors. The Nifty 50 breached the psychological 25,600 mark intraday for the first time since June 27, underpinned by robust investor sentiment and sector-wide participation, before witnessing mild profit-taking in the final trading hour. By the closing bell, the BSE Sensex surged 862.23 points, or 1.04%, to settle at 83,467.66, while the Nifty 50 advanced 261.75 points, or 1.03%, to close at 25,585.30. The broader market also ended in the green, with the Nifty Midcap and Smallcap indices gaining 0.46% and 0.24%, respectively, indicating continued interest in the broader universe.

Sectorally, the market breadth remained decisively positive. Barring the Nifty PSU Bank index, which slipped 0.4% on selective profit-booking, all other sectoral indices on the NSE closed in the green. Notable outperformance was seen in Nifty Auto, Bank, Consumer Durables, Realty, FMCG, and Oil & Gas indices, which posted gains in the range of 0.5% to 1.7%, reflecting risk-on sentiment and rotational buying by institutional participants. The rally was supported by both domestic and global cues, with declining crude oil prices and stable US yields providing a favourable macro backdrop.

Nifty Outlook

The index formed a strong bullish candle with a higher high and higher low signaling continuation of the positive momentum. Nifty on Thursday session has generated a breakout above a falling supply line joining the major highs of September 2024 and June 2025 signaling strength and continuation of the up move. On the smaller time frame Nifty has generated a breakout above last three months symmetrical triangular consolidation pattern highlighting positive bias and any dips should be used as a buying opportunity. We expect the stock to maintain positive bias and head towards the high of June 2025 placed around 25670 levels. A breakout above the same will open further upside towards 25800 levels in the coming sessions. Thursday major breakout area of 25350-25450 is likely to reverse its role and act as key support in the coming sessions.

Bank Nifty Outlook

Bank Nifty formed a bull candle with a higher high and higher low and a bullish gap below its base, highlighting continuation of the positive momentum. Index in the process closed firmly above the 57,000 levels signaling strength. Bank Nifty continues to outperform the Nifty in the current leg of up move, with key private banking heavy weights Q2FY26 results lined up on coming Saturday. It will decide the next directional trigger for the index. With prices holding above key moving averages, the near-term bias remains upward. The index is likely to test our target of 58,000, being the 161.8% external retracement of the previous up move (53561-55835) as projected from the recent trough of 54226. The thursday gap area of 56,700 will act as immediate support for the index. The RSI (14) at 66 indicates healthy momentum, suggesting strength in the uptrend. Any dips should be viewed as buying opportunities within this constructive setup.

Attributed to Bajaj Broking Limited.