EQUITY RESEARCH (31st Oct 2026)

Nifty 50 traded with positive bias and settled the week with a gain of 453 points, paring previous week’s losses. Positivity in Nifty was seen amid strength in INR, along with continuous weakness in the bullion market, thus shifting investors’ interest towards the equities. Further FED keeping the interest rate constant, also brought in some positivity in the market. But upside in the index remains limited amid ongoing pressure with FII’s continuing to sell with no motive to return back. Inflation concerns also continued to hover over the market, thus limiting the strength in  the index, with Brent crude rising to the level of $113.

INR Performance

It was a tug-of-war, and the Indian Rupee managed to hold its ground. Despite early pressure from stubborn crude prices and steady foreign fund outflows, the rupee settled near 994.94. Much of that stability comes down to the RBI stepping in when needed, state-run banks were quick to supply dollars whenever USD/INR edged toward the 95.30 – 95.40 mark, while private swap lines for oil refiners kept heavy import demand from shaking up the open market. Paired with a softer greenback and cooling US Treasury yields toward the end of the week,the central bank’s steady hand helped the rupee finish on a calm, resilient note.

FII’s continues to sell

Foreign Institutional Investors staged a sharp late-month reversal during the week, snapping a prolonged selling streak to emerge as net buyers of ₹6,304.67 crore in the cash equity segment across five trading sessions. Although cumulative monthly outflows remained elevated near ₹48,000–₹50,000 crore due to heavy liquidation earlier in October, this end-of-week institutional rebound provided vital support to headline benchmarks, allowing domestic institutional investors to book selective profits while stabilizing broader secondary market liquidity.

For the week ahead

Domestically, the index would get a direction, taking cues from the performance of INR. Further investors would take cue from movement of Crude oil prices which continued to over $113. A further key economic event with a list of data like PMI data due to be released in the coming week, along with US midterm election around the corner, would also give direction to Nifty.

NIFTY WEEKLY

Ending a volatile week on a positive note, the Nifty 50 erased its previous week’s losses and gained 453 points (2.00%) to close at 23,053.10. On the indicator front, the RSI managed to stay within the normal zone at the mark of 43.53 and stayed below the mark of 50, indicating room for the upside in the index. To maintain this positive traction, the index needs to hold above 22,300 and overcome its weekly peak of 23,118.10, which could open up targets at 23,150–23,300. Conversely, a breakdown below the key support zone of 22,350 may trigger further selling toward 22,000

BANK NIFTY WEEKLY

Experiencing strong downward pressure, Bank Nifty dropped by 0.41% points over the week, closing at 54,686.95 for the period ending October 31. Technical indicators reflect this room for upside and strength index with the RSI gaining to 42.17 from previous week’s number of 39.88, signaling potential further upside to the near term resistance of 55,200. For a bullish reversal to take hold, the index needs to break and hold above 55,500, which could unlock a move toward 56,500. On the flip side, falling below the weekly low of 53,700 risks deepening the correction toward 52,750.

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