The Indian stock market extended its gains to the third consecutive session on Friday, October 17, supported by a mix of positive factors that pushed key indices to fresh one-year highs, bringing early Diwali cheer to Dalal Street.
The Nifty 50 climbed 0.50% to cross the 25,700 mark and settled at 25,709, the highest level since October 2024. The index has closed most sessions in October on a positive note, taking its month-to-date gains to 4.46%, marking its best monthly performance since March 2025.
What’s powering the market’s festive mood ahead of Diwali?
A strong start to the banking earnings season, led by Axis Bank, which beat margin estimates and reported improved asset quality, along with a robust Nestlé India performance in the September quarter, sparked a rally across private sector banks and consumer durables, giving a much-needed boost to the bulls, even as trade tensions between China and the U.S. remained elevated.
“The market has continued its upward momentum, reaching a new 52-week high, largely driven by consumption-oriented stocks, anticipating improved volume growth. Inline earnings from banks and signs of easing asset quality stress have bolstered overall industry optimism,” said Vinod Nair, Head of Research, Geojit Investments Limited.
The market also drew strength from a shift in foreign investor sentiment, as FPIs turned net buyers in recent sessions. Easing valuation concerns encouraged them to unwind their bearish stance.
In addition, the rising hopes of a trade deal between India and the U.S., along with a drop in crude oil prices, have further helped Indian equities to outperform key global peers so far this month.
Besides, the rally was supported by growing expectations of another rate cut by the U.S. Federal Reserve and easing geopolitical tensions in the Middle East.
The Street also remains optimistic about an earnings recovery in the second half of FY26, likely to be driven by the recently announced GST rate cuts, along with the RBI’s cumulative 100-basis-point repo rate reduction and other easing measures that are expected to revive consumption.
Could Nifty 50 hit a new record high soon?
With today’s rally, the Nifty 50 has moved closer to its all-time high of 26,277, reached in September 2024 and is now just about 2.16% away from breaching this level.
Market experts and technical analysts believe the Nifty could advance toward 26,300 if it manages to break above the 25,800–26,000 zone.
Ponmudi R, CEO of Enrich Money, a SEBI-registered online trading and wealth-tech firm, said the Nifty 50 has confirmed a breakout above the horizontal resistance line near 25,700, signaling a continuation of the prevailing uptrend.
He noted that the index touched a new 52-week high of 25,781.50, with the next immediate resistance seen around 25,800–26,000. “A decisive breakout above this zone could open the next leg of the rally toward 26,300, paving the way for new lifetime highs,” he added.
On the downside, strong support is visible around 25,600–25,450, which aligns with the rising trendline and short-term moving averages.
Ajit Mishra, SVP of Research at Religare Broking, echoed a similar view, noting that Nifty’s positive tone remains intact, with the next targets seen at 26,000, followed by new record highs. However, he cautioned that given the recent underperformance in the broader market, traders should focus on index heavyweights and larger midcaps for long trades.
Rupak De, Senior Technical Analyst at LKP Securities, also maintained a bullish outlook. “Technically, Nifty looks strong for a decent upside from here, and a ‘buy on dips’ strategy might prove effective. On the lower end, meaningful support is placed at 25,500, while resistance is seen at 25,850–26,000,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
