The Indian stock market seems all set for another powerful start as optimism builds on Dalal Street. After a brief festive break, traders are gearing up for a potentially record-breaking Thursday, with Gift Nifty trading higher and hinting at a strong opening for both Nifty and Sensex.
As of early Thursday morning, Gift Nifty was hovering around 22,320 levels, suggesting a gain of nearly 90 points for the Nifty50. The mood across global markets also remains upbeat, thanks to easing US bond yields, steady oil prices, and rising expectations of a trade pact between India and the United States.
Global Sentiment Turns Supportive
Asian peers opened mostly in the green on Thursday. Japan’s Nikkei rose nearly 1%, while South Korea’s Kospi gained about 0.5%. US markets ended slightly higher overnight, with the Dow Jones and S&P 500 posting mild gains. The tech-heavy Nasdaq also saw renewed buying interest, largely led by semiconductor and AI-related stocks.
Analysts believe this positive global setup is likely to spill over to Indian equities. “The mood is clearly bullish. Traders are back from the holiday with renewed optimism. Gift Nifty’s movement suggests another strong session on Dalal Street,” said Ramesh Bhatt, senior technical analyst at Mumbai-based EquiView Research.
He added that foreign institutional investors (FIIs), who were net buyers before the Diwali week, are likely to continue their inflows if the India-US trade negotiations show progress.
India-US Trade Deal Hopes Lift Market Mood
Buzz around a possible India-US trade pact has added a fresh spark to investor sentiment. Reports suggest both nations are exploring new avenues to boost bilateral trade, focusing on technology exports and manufacturing collaborations.
Experts believe such an agreement could open doors for Indian companies in sectors like semiconductors, defense, and renewable energy. “If even a partial trade framework is signed, it could be a game changer for India’s industrial growth story,” said market veteran Deepak Mehta.
The positive whispers have already influenced the rupee and bond markets, which remained stable despite global volatility.
Technical Outlook: Nifty Near Record Zone
Technically, the Nifty50 is now flirting with its all-time high zone near 22,400. The index closed the previous session at 22,240, marking strong recovery momentum from the previous week’s dip.
According to analysts from Moneycontrol’s trade setup, immediate support lies at 22,100 while resistance sits around 22,400-22,500. “If Nifty breaks above 22,400 decisively, we can expect a quick move towards 22,700,” said Bhatt. “However, traders should keep trailing stop-losses tight, as volatility may spike during the mid-session.”
Banking stocks are expected to play a crucial role in Thursday’s rally. Heavyweights like HDFC Bank, ICICI Bank, and SBI could see positive action following healthy credit growth data and strong quarterly results.
Sectoral Watch: IT, Auto, and Metals in Focus
The IT sector might attract renewed buying as Nasdaq gains inspire optimism for Indian tech exporters. Infosys, TCS, and Wipro could see mild upswings after recent corrections.
Auto stocks are likely to stay in the limelight as festive sales data continues to show strong consumer demand. Meanwhile, the metal pack may benefit from a rebound in global commodity prices, especially aluminum and copper.
Pharma shares might witness stock-specific action, with Dr. Reddy’s and Sun Pharma being watched closely ahead of upcoming USFDA approvals.
FIIs and DIIs Flow
On the institutional front, FIIs bought shares worth over ₹1,200 crore in the last trading session before the holiday, while domestic institutional investors (DIIs) also added around ₹600 crore. This consistent inflow signals strong confidence in India’s growth outlook.
Market strategists believe that if foreign buying continues this week, Nifty could not only touch new highs but sustain above them, marking the start of a new rally phase.
What to Expect Ahead
With the festive spirit still in the air and global cues favoring bulls, all eyes are on whether the Nifty can scale its next big milestone. Traders are also awaiting fresh commentary from the US Federal Reserve and updates on the crude oil front, which could shape market direction in the coming sessions.
“Short-term momentum is clearly on the upside. The only risk is profit booking near record levels, but the broader trend remains positive,” said independent market advisor Sneha Kothari.
For retail traders, experts suggest sticking with large-cap stocks and avoiding over-leveraged bets. Swing traders may find opportunities in auto and banking names as both sectors continue to show strong charts and steady fundamentals.
Final Outlook:
Thursday’s session could set the tone for the last leg of October trading. With Gift Nifty already flashing green and optimism over global cooperation rising, the bulls seem to have the upper hand. Whether this leads to a new all-time high for Nifty or just another test of investor patience will be seen as the opening bell rings today.