Indian stock markets showed a recovery on Monday, October 26, after opening lower, as investors assessed key factors such as crude oil prices, geopolitical tensions and the upcoming US Federal Reserve policy decision. At 10:15 AM IST, the Sensex rose 0.43% to 73,435, while the Nifty 50 gained 0.40% to 22,690. However, sentiment remained cautious after last week’s losses and continued uncertainty over global economic conditions.

1. Crude Oil Prices Remain a Major Concern

Brent crude traded above $110 per barrel, keeping inflation risks in focus. Ongoing tensions in the Middle East and concerns about disruptions to oil supplies have increased uncertainty. Higher crude prices can raise India’s import bill, pressure the rupee and increase costs for sectors such as aviation, paints and tyres.

2. US Federal Reserve Decision in Focus

Investors are awaiting the Federal Reserve’s policy announcement later this week. Markets expect the Fed to hold rates at its upcoming meeting, but its comments on inflation and future rate decisions could influence the dollar, bond yields and foreign investment flows into emerging markets such as India.

3. Infosys Guidance Cut Weighs on IT Stocks

Infosys lowered its annual revenue growth forecast, citing weakness in its key North American market. The update raised concerns about demand for traditional IT services and the impact of AI-driven changes on the industry. Infosys shares fell around 2% in early trade, contributing to pressure on the IT sector.

4. Corporate Earnings Drive Stock-Specific Moves

Investors are tracking September-quarter earnings for clues about demand, profitability and loan growth. Kotak Mahindra Bank gained after reporting stronger-than-expected quarterly profit, while Dr. Reddy’s Laboratories advanced on better-than-expected results. In contrast, Shriram Finance fell after lowering its loan-growth forecast.

Key Technical Analysis

Sensex: Support is placed near 72,800 and 72,500, while resistance lies around 73,300 and 73,500.

Nifty 50: Immediate support is around 22,450, followed by 22,350. Resistance is near 22,750 and 22,850.

Bank Nifty: Support is placed around 54,000 and 53,500, while resistance lies near 54,500 and 54,750. These levels are indicative and may change with intraday price action.

Today’s Key Takeaway

The market’s recovery reflects selective buying, but elevated crude prices, geopolitical uncertainty and the upcoming Fed decision continue to pose risks. Investors should monitor oil prices, quarterly earnings and key index levels before drawing conclusions about a sustained rebound.

Discover the next big investment! Tradz by EquityPandits’ IPO screener helps you identify promising initial public offerings. Download Tradz by EquityPandit and get ahead of the curve! Sign Up Now & Find Your Next IPO Gem!