Stock Market Rally: Bulls to stay? Nifty, Sensex gain 5.5% in 5 sessions; Can the momentum sustain? Key levels to watch
Indian equity markets extended their winning run on Wednesday, 4 November, with the Nifty 50 and Sensex logging their longest consecutive gains in nearly five months. A combination of expectations of renewed foreign institutional investor (FII) buying, broad-based domestic participation and optimism around global developments lifted investor sentiment, even as markets tracked the outcome of the US midterm elections.
The Nifty 50 advanced 5.55% over five trading sessions, while the Sensex climbed 5.53% during the same period. Buying was visible across market segments, with midcap and smallcap indices outperforming the benchmarks, rising 1.55% and 2%, respectively.
Among individual stocks, Bharat Electronics (BEL) led the Nifty gainers, rising 4.7%. Adani Enterprises gained 4.5%, followed by Titan (4.2%), Jio Financial Services (3.7%) and Max Healthcare (3.5%). IT stocks, however, faced selling pressure, with TCS declining 2.5%, HCL Technologies falling 2.4% and Infosys losing 1.8%.
Sectoral performance was mixed. The Nifty Media index emerged as the biggest gainer, climbing 4.5% to touch a fresh 52-week high. In contrast, the IT index slipped 1.9% as investors booked profits amid concerns over global technology demand.
Global political developments remained a key factor for investors, with the US midterm election outcome drawing attention. A Democratic victory is being viewed as a setback for President Donald Trump and could signal voter dissatisfaction with his administration's policies, including its global tariff measures and decision to enter the conflict in the Middle East.
For India, the outcome comes at a crucial time as New Delhi continues negotiations for a trade agreement with Washington. Trump's restrictions affecting Indian professionals and students, including curbs involving H-1B and student visas, have also remained a concern for market participants.
Foreign investor activity has offered some support to domestic equities. Overseas investors have purchased Indian shares worth approximately ₹7,200 crore ($821 million) since the beginning of November, narrowing their net outflows for 2026 to around ₹2.68 lakh crore ($30.59 billion).
Meanwhile, crude oil prices remained an important variable for the market outlook. Brent crude futures declined 1% to $102.50 per barrel as investors awaited signals from Washington on the next course of action in the US-Israeli war on Iran.
Sunny Agrawal, Head of Fundamental Research at SBI Securities, said the market rally came despite mixed global cues, with Asian markets remaining under pressure amid concerns over the unwinding of AI-related trades and the potential implications of the US midterm election outcome.
On the domestic front, easing crude oil prices, positive corporate earnings and expectations of a possible rationalisation of capital gains tax supported investor sentiment. Brent crude was trading around $103 per barrel.
Looking ahead, Agrawal said market direction would depend on quarterly earnings, crude oil price movements, developments in the Middle East, US bond yields and foreign institutional investor (FII) flows.
He noted that FIIs remained net buyers to the tune of ₹6,837 crore on November 3, while domestic institutional investors (DIIs) were net sellers of ₹3,679 crore. While the recent recovery has improved market sentiment, sustained institutional inflows and broader participation across sectors will be crucial to maintaining the positive momentum.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the Nifty 50's immediate support is placed in the 23,850–23,870 zone. A breakdown below this range could trigger short-term profit booking towards 23,700. On the upside, the 24,050–24,070 zone remains a key hurdle. A sustained breakout above this range could attract further short-covering and push the index towards 24,230.
Hitesh Tailor, Technical Research Analyst at Choice Broking, said the Nifty 50 is consolidating around 23,870 following a strong four-session rally, while maintaining a positive price structure characterised by higher highs and higher lows.
He identified 23,900–24,000 as a crucial resistance zone, backed by the 200-day EMA, 50-week EMA and the highest volume concentration, or point of control (POC). The daily RSI near 67.50 and weekly RSI at 52.53 indicate improving momentum. A decisive breakout and weekly close above 24,000 could open the way towards 24,500–24,800. On the downside, immediate support is placed at 23,650–23,700, followed by 23,500.
Gaurav Arora, Head of Research at SAHI, said the Nifty 50 has broken out above its base formation, indicating that the positive momentum could continue. He identified 23,550 as a crucial support level, followed by 23,350. On the upside, resistance is placed in the 23,950–24,000 zone.
Hitesh Tailor of Choice Broking said the Sensex is consolidating around 77,265 after reclaiming its 200-day EMA, signalling an improvement in its technical strength. The earlier resistance zone of 76,900–77,000 has now turned into immediate support, while 77,500 remains a crucial weekly resistance.
A sustained weekly close above 77,500 could extend the recovery towards 78,200. On the downside, support is placed at 76,900–77,000, followed by a major base near 75,000.
Tailor added that both benchmark indices continue to maintain a positive technical structure, supported by improving momentum. A decisive breakout above 24,000 on the Nifty 50 and 77,500 on the Sensex will be important for the next leg of the upward move.
Meanwhile, Gaurav Arora of SAHI said the Sensex witnessed supply pressure near its session highs. He identified 76,050 as the key support, followed by 75,550. The latter also coincides with the earlier breakout zone, making it an important level from a technical perspective.
On the upside, the 77,500–77,700 zone is likely to act as a supply area. Arora said the broader technical structure would remain positive as long as these support levels hold, adding that the current pullback should be viewed as a pause in the uptrend rather than a reversal.
Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.
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