The overall market breadth was decisively weak, with the advance-decline ratio skewed heavily toward declines, reflecting broad-based selling pressure after a strong performance throughout October.
On the sectoral front, Nifty Pharma led the decline, alongside weakness in Metal and FMCG. Heavyweights like Dr. Reddy’s Lab and Bharti Airtel were key laggards. Global sentiment was cautious, as the US Federal Reserve’s 25bps rate cut was overshadowed by its measured commentary on future policy.
Two stock recommendations by MarketSmith India:
Buy: Welspun Corp Ltd. (current price: ₹926)
Why it’s recommended: Strong presence in steel pipes and infrastructure solutions, healthy order book across domestic and export markets, beneficiary of rising government spending on oil, gas, and water projects, and diversified product portfolio including DI pipes and stainless-steel solutions
Key metrics: P/E: 24.09, 52-week high: ₹994, volume: ₹267.34 crore
Technical analysis: Reclaimed its 100-DMA on above average volume
Risk factors: Cyclicality in steel and infrastructure sectors, dependence on government capex and policy support, volatility in raw material prices impacting margins, execution delays or project cancellations, currency and export-related risks, rising competition from domestic and global peers, and global demand slowdown affecting export.
Buy: ₹ 920–940
Target price: ₹1,060 in two to three months
Stop loss: ₹860
Buy: Carysil Limited (current price: ₹950)
Why it’s recommended: Strong export partnerships & premium product focus, niche technology/competitive moat & cost advantage
Key metrics: P/E: 22.33; 52-week high: ₹990; volume: ₹36.31 crore
Technical analysis: trendline breakout
Risk factors: Demand cyclicalities & export-market risks, Working-capital intensity & raw-material volatility
Buy at: ₹940–955
Target price: ₹1,100 in two to three months
Stop loss: ₹ 890
How the market performed on 30 October
Indian equities ended lower on October 30, with benchmark indices succumbing to broad-based selling amid weak global cues and profit-booking in heavyweights. Nifty 50 slipped 176 points or 0.68% to close at 25,877.85, retreating from 26,000, while Sensex dropped in tandem.
The market breadth remained negative, with 1,321 stocks advancing and 1,748 declining, indicating widespread pressure across sectors. On the sectoral front, Nifty Financial Services (-0.7%), Private Banks (-0.7%), FMCG (-0.5%), and IT (-0.5%) led the decline, reflecting weakness in rate-sensitive and defensives alike.
While, Nifty Realty was the lone gainer, ending marginally higher. Broader sentiment was cautious as investors awaited key global central bank cues and quarterly earnings updates. Overall, the day’s trade reflected consolidation after recent highs, with sector rotation and profit-taking keeping upside momentum in check.
From a technical standpoint, Nifty 50 entered a mild corrective phase after a strong upward breakout earlier this month. Over the last six trading sessions, the index has shown signs of profit-taking near the 26,100–26,150 resistance zone, forming a series of lower intraday highs while finding support around 25,850. Today’s close at 25,877.85 confirms near-term hesitation after an extended rally.
The index continues to trade above all its key moving averages, indicating that the broader trend remains structurally bullish despite short-term consolidation. However, the RSI (14) has eased to 64.1 from overbought territory near 70, suggesting fading momentum and the likelihood of a pause before any further upside. The MACD, though still in positive territory, is showing narrowing histogram bars, suggesting weakening bullish momentum.
According to O’Neil’s methodology of market direction, the market status has shifted to a “Confirmed Uptrend” as it decisively surpassed its previous rally high of 25,670 to register a new 52-week.
Caution ahead of the U.S. Federal Reserve’s December rate decision, coupled with renewed foreign fund outflows, led to bouts of profit booking in the domestic markets. On the technical front, Nifty now faces a key resistance zone between 26,000 and 26,300. A decisive breakout above this range could open the door to new all-time highs. On the downside, immediate support lies at 25,400, while a stronger base around 25,000 continues to reinforce the prevailing uptrend. The broader market structure remains constructive as long as the index sustains above 25,400, a crucial breakout zone aligned with the downward-sloping trendline.
How did Nifty Bank perform?
Bank Nifty opened on a weak note and stayed in negative territory throughout the session. On the daily chart, it formed a bearish candle with a lower-high and lower-low pattern, indicating short-term weakness. The index opened at 58,152.05, moved between 58,331.20 and 57,999.20, and finally settled at 58,031.10, down 0.61%.
Despite the decline, it continues to trade comfortably above all its key moving averages, reflecting that the broader bullish momentum remains intact. Overall, while the day’s action hints at mild profit booking, the index structure still favors the ongoing uptrend if key supports hold.
The RSI has turned slightly downward and is currently positioned at 67, indicating mild cooling in momentum. Meanwhile, the MACD maintains a positive crossover and continues to trend above its central line, supporting the ongoing bullish bias.
According to O’Neil’s methodology of market direction, Nifty Bank remains in a Confirmed Uptrend, suggesting that despite minor pullbacks, the broader trend continues to favor the bulls with underlying strength intact in the banking sector’s price action.
From a technical perspective, the index continues to exhibit strength, with immediate support seen near 57,500 and a solid base around 56,900, coinciding with the 21-DMA. On the upside, a sustained move above 58,550 could trigger a strong upward momentum, paving the way toward 60,000 in the near term. The overall setup remains firmly bullish.If the index holds above its key support zones, every dip is likely to attract renewed buying interest, reinforcing optimism among traders and investors.
MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O’Neil. You can access a 10-day free trial by registering on its website.
Trade name: William O’Neil India Pvt. Ltd.
Sebi Registration No.: INH000015543
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
