Taking Stock: Bulls back in action as Nifty tested 26,000, Sensex gained over 550 points on global cues

Bulls were back in action as the benchmark Nifty 50 index surpassed the 26,000 level during the session, helped by supportive global cues and broad-based buying on October 27, to take the index higher by 0.6 percent, recouping Friday's losses.

After opening higher, Sensex and Nifty extended gains on hopes of further rate cut by the US Fed and a growing confidence over a potential US-China trade in the offing.

At close, the Sensex was up 566.96 points or 0.67 percent at 84,778.84, and the Nifty was up 170.9 points or 0.66 percent at 25,966.05, while the BSE Midcap index added 0.7 percent and smallcap index rose by 0.5 percent.

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SBI Life Insurance, Bharti Airtel, Reliance Industries, SBI, Eternal were among top gainers on Nifty 50, while losers included Bharat Electronics, Kotak Mahindra Bank, Infosys, Adani Ports and Bajaj Finance.

Except media and pharma, all other sectoral indices ended in the green with metal, PSU Bank, oil & gas, realty index up 1-2 percent.

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In stock-specific action, Kotak Mahindra Bank fell 1.5 percent after Q2 profit fall, Coforge shares added 4 percent on profit growth, SBI Life's shares gained 3 percent, Zen Technologies shares shed 4 percent on weak Q2 earnings, while GPT Infraprojects added 6 percent on bagging order worth Rs 195 crore.

Sigachi Industries shares slipped nearly 3 percent after profit drop, while Vodafone Idea shares ended 4 percent higher after SC allowed Centre to reconsider the AGR issue. RIL shares rose 2 percent as Facebook picked up stake in the AI venture, while MCX shares rose more than 3 percent on launching options contract on bullion index MCX BULLDEX.

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More than 180 stocks touched their 52-week high on the BSE, including eClerx Services, HBL Engineering, SBI Life Insurance, CreditAccess Grameen, Federal Bank, Bank of India, Bharti Airtel, Cummins India, Laurus Labs, Shriram Finance, SBI, Hindalco Industries, Motilal Oswal, Chola Invest, Tata Steel, Amber Enterprises, Asahi India, Sammaan Capital, among others. Click to View More

Outlook for October 28

Shrikant Chouhan, Head Equity Research, Kotak Securities

Today, the benchmark indices bounced back sharply, with the Nifty ends 171 points higher while the Sensex was up by 567 points. Among sectors, PSU Banks index outperformed, rallied 2.76 percent, whereas despite strong market sentiment, intraday profit booking was seen in Défense and Media stocks.

Technically, the week opening was positive; after a gap-up open, the market maintained its positive momentum throughout the day. A bullish candle on daily charts and a reversal formation on intraday charts indicate a further uptrend from the current levels.

For day traders, 25,900/84500 would act as an immediate support zone. As long as the market trades above this level, the bullish sentiment is likely to continue. On the higher side, it could retest the levels of 26,100-26,150/85000-85300. On the flip side, below 24,900/84500, we could see a quick intraday correction down to 25,800-25,750/84200-84000.

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty started on a strong note and remained mostly sideways throughout the day ahead of the NSE F&O expiry. Sentiment continues to remain strong as the index sustains above the breakout point.

The current setup looks favorable for a further rally in the index, with dips likely to be bought into. On the lower end, support is placed at 25,700, below which weakness might emerge. On the higher end, resistance is seen at 26,000; a decisive move or close above this level could trigger a rally towards 26,500 in the short term.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decision.