Stock market today: Indian stock markets declined on Tuesday, October 27, as investors weigh geopolitical tensions, elevated crude oil prices and foreign fund outflows against improving corporate earnings and sustained domestic institutional buying.
With the Nifty expiry session today, traders will closely monitor crucial technical levels to assess whether the recent recovery can continue or selling pressure will intensify. Global developments, particularly the US Federal Reserve’s policy decision and movements in crude oil, could further influence market direction.
The Sensex fell 314 points, or 0.4%, to an intraday low of 73,292.50, while the Nifty declined 93 points, or 0.4%, to 22,660.2. The benchmarks had gained around 0.7% in the previous session, snapping a four-session losing streak. Earlier in October, the indices had also attempted a recovery after extending their losing streak to eight consecutive weeks for the week ended October 1, their longest such run in 25 years.
Global sentiment also remained mixed today with the US markets closed higher overnight and Asian equities advanced in early trade, offering some support. However, Brent crude futures hovered near a six-month high of around $115 a barrel after attacks on Saudi Arabia dampened hopes of an immediate easing of regional tensions.
Moreover, the US Federal Reserve’s October 27–28 policy meeting and major technology earnings were also expected to influence volatility. According to a Reuters poll of economists, the Fed was expected to hold rates steady before resuming its tightening cycle with a rate increase in December.
FII selling also continued. On October 26, FIIs remained net sellers, offloading equities worth ₹1,462 crore.
1. Nifty Expiry Today: What Should Investors Watch?
Market direction will depend on how investors respond to domestic earnings, foreign fund flows and international developments. Although institutional buying at home has offered some support, high crude oil prices and uncertainty surrounding US policy continue to pose risks for Indian equities.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, identified crude oil above $114 a barrel and the US 10-year Treasury yield near 4.97% as significant near-term headwinds. He expected foreign institutional investors (FIIs) to remain cautious amid the adverse macroeconomic environment. However, improving corporate fundamentals reflected in second-quarter earnings and robust domestic fund inflows could help cushion the market.
“Brent crude remaining above $114 and the US 10-year bond yield hovering around 4.97% continue to be near-term headwinds for the market. FIIs will remain in a risk-off mode in this adverse macro setting.”
Vijayakumar also highlighted the potential implications of the upcoming US midterm elections. Polls suggested a difficult contest for Republicans in the House of Representatives and Senate. He cautioned that political setbacks and unpredictable developments involving President Donald Trump’s Iran strategy could affect geopolitical tensions and crude prices. Investors should monitor these developments while remaining alert to value-buying opportunities.
2. Nifty Support and Resistance Levels: Where Could the Index Head?
Technical levels remain essential for traders seeking to assess whether the market’s rebound has sufficient strength to continue. The ability to hold support could encourage further buying, while a decisive breakdown could weaken sentiment and expose the index to lower levels.
Shrikant Chouhan, Head of Equity Research at Kotak Neo, said the rebound from the day’s lows, supported by a bullish daily candle and an intraday reversal formation, had improved the short-term technical setup. He identified 22,600 as the first crucial support, followed by 22,500.
If these levels hold, Chouhan said the pullback rally could extend towards 22,800, with a sustained breakout potentially opening the way towards 23,000. A fall below 22,600, however, would weaken the bullish setup and warrant caution on long positions.
Anand James, Chief Market Strategist at Geojit Investments Limited, also considered 22,630 an important threshold for the Nifty’s near-term direction.
“As long as dips are contained above 22630, we will remain interested in an upside play aiming for 23000 or even 23500, with volatility expectations once inside the 22800-900 region.”
James indicated that the index could target 23,000 or even 23,500 if it held above 22,630. Conversely, failure to sustain above this level could expose the Nifty to 22,250–22,000, although he considered a sharp collapse less likely. He also anticipated volatility around 22,800–22,900.
3. Nifty Trading Strategy: Should Traders Buy the Dip?
A technical recovery does not necessarily signal a sustained reversal, particularly when global uncertainty and foreign investor selling remain concerns. Traders must assess momentum alongside derivatives positioning, resistance levels and broader market participation before taking fresh positions.
Deepesh Sarawagi, Technical Research Analyst at Choice Broking, said the Nifty’s relative strength index (RSI) had improved to 46.08, above its average of 41.56. The put-call ratio (PCR) at 1.13 indicated a relatively supportive derivatives setup. However, the index remained below its key moving averages, while persistent FII selling and Bank Nifty’s weak RSI warranted vigilance.
Sarawagi placed immediate support at 22,500–22,550 and resistance at 22,850–22,900. He noted that call writing around 22,800 could restrict the upside, making price action near resistance particularly important in determining whether the rebound could extend or give way to renewed consolidation.
For traders, holding above 22,600–22,630 could support a move towards 22,800–23,000, while a sustained breakout would strengthen the recovery outlook. A decisive break below support could expose the index to further downside. Given expiry-related volatility and uncertain global cues, traders should avoid chasing sharp moves and maintain disciplined risk management.
Disclaimer: 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.
