Why Is Stock Market Rising Today? Know Key Factors Behind Sensex, Nifty Rally On October 27 | Markets News

Why is Market Rising Today?

Indian benchmarks traded higher on Monday, with the Sensex and Nifty rebounding after Friday’s pause in a six-session winning streak, as softer-than-expected U.S. inflation data fueled expectations of two additional rate cuts in 2025.

The S&P BSE Sensex advanced over 700 points to rise above the 84,800 level, while the NSE Nifty 50 climbed over 200 points to rise above the 26,000 level.

On the 30-share Sensex, Tata Steel, Bharti Airtel, TMPV, Reliance Industries, and State Bank of India were among the top gainers, rising between 1% and nearly 2%.

Across sectors, financials outperformed, with the Nifty Bank index advancing 0.4% and the Nifty PSU Bank index climbing 1.1%. Broader markets also strengthened, as the small-cap index gained 0.3% and the mid-cap index rose 0.4%.

Global cues supported sentiment after US consumer inflation eased in September, reinforcing expectations that the Federal Reserve may announce rate cuts in its upcoming October and December policy meetings. Lower interest rates in the US typically enhance the appeal of emerging markets like India for foreign investors.

Meanwhile, optimism around global trade improved as senior officials from the US and China reportedly agreed on a preliminary framework for a trade deal, which Presidents Donald Trump and Xi Jinping are expected to review later this week.

“The Nifty index ended the week flat, up by 85 points after a strong upward move. On the weekly timeframe, the index corrected nearly 311 points from its high, marking a volatile session and signaling a consolidation phase after recent sharp gains. Nifty witnessed temporary profit booking, slipping below the 25,800 mark and closing at 25,795.15 — indicating a pause in momentum as traders booked profits at higher levels,” said Hardik Matalia, Derivative Analyst at Choice Broking.

Key Technical Levels to Watch

Sensex:

According to Anshul Jain, Head of Research at Lakshmishree, the Sensex has successfully retested its previous all-time high of 84,089 and is now showing a strong follow-through move on the upside, crossing the prior session’s high of 84,707.44 with a positive gap.

“A sustained close above 84,700 will confirm continuation of the uptrend, opening room for an initial move toward the 87,000 zone. Price action shows clear bullish strength, and momentum indicators like RSI and short- to medium-term moving averages remain firmly aligned in favor of the bulls,” Jain said.

Nifty 50:

Hardik Matalia of Choice Broking believes that a decisive breakdown below 25,670 could trigger weakness towards 25,500 and further down to 25,400. “On the upside, immediate resistance is seen at 25,950, followed by 26,000 and 26,100. A sustained move above these levels would confirm the continuation of the bullish trend, while failure to cross them may keep the short-term trend range-bound,” he added.

• Support: 25,500 – 25,300
• Resistance: 25,800 – 26,000
• Bias: Sideways to Bullish

Matalia also suggested a ‘buy on dips’ strategy while remaining cautious. “Given the current market setup, buying on dips remains favorable. However, traders should maintain strict stop-loss levels to manage risks effectively in this volatile environment,” he advised.

Bank Nifty:

The Bank Nifty ended the week on a flat note at 57,699 after hitting a new lifetime high during a volatile session. The index showed strength by surpassing its earlier peak of 57,628 but later corrected nearly 870 points from the week’s high, reflecting profit-taking at higher levels.

“A decisive close above 58,000 would reaffirm bullish momentum and open the door for further gains, whereas failure to sustain above this level could invite short-term weakness. Traders should remain constructive yet disciplined, closely monitoring 57,400 on the downside and 58,000 on the upside for cues on the next directional move,” Matalia added.

• Support: 57,400 – 56,900
• Resistance: 58,000 – 58,700
• Bias: Sideways to Bullish