According to Bajaj Broking Research, the market is likely to see a short-term consolidation after a robust four-week rally that lifted benchmark indices to record levels.
Stock Market Outlook Today For 27 October 2025
On Friday, both frontline indices ended lower amid broad-based selling pressure. The Sensex fell 344.52 points (0.41%) to close at 84,211.88, while the Nifty 50 slipped 96.25 points (0.37%) to end at 25,795.15. Despite a late recovery, the benchmarks settled in the red as investors booked profits after recent gains.
Bajaj Broking noted, "Indian benchmark indices witnessed broad-based profit booking on Friday amid ongoing global trade tensions and policy uncertainties. Despite a late-hour rebound, the Nifty ended the day on a weak note, closing near the 25,800 mark."
Stocks in Focus Today: Sector-wise Stocks Performance Trend
Sector-wise, Nifty Private Banks, PSU Banks and Healthcare stocks came under pressure, while Metal, Realty and Oil & Gas sectors managed to stay in positive territory, helping limit losses. The broader market mirrored the cautious sentiment, with the Nifty Midcap 100 falling 0.24% and the Smallcap index down 0.21%, signaling widespread profit-taking.
Nifty Prediction Today
As per Bajaj Broking, the Nifty 50 has entered a phase of consolidation after a sharp four-week rally. "Nifty on the weekly chart has formed a high wave candle with a higher high and higher low, signaling consolidation amid stock-specific action after the recent sharp up move," the brokerage said in its report.
After gaining nearly 1,500 points in the past month, the stochastic oscillator on both daily and weekly charts has moved into the overbought zone, suggesting that the index may pause or move sideways in the short term.
Bajaj Broking added, "We anticipate the index to trade within the 25,600-26,100 range to cool off overbought conditions, while a decisive break above 26,100 could open the door for an up move toward 26,500 in the coming weeks. On the downside, the 25,500-25,700 zone is expected to act as a strong support area."
Analysts suggest that dips toward 25,600-25,700 should be viewed as buying opportunities, given that this area aligns with the 38.2% Fibonacci retracement of the recent rally (24,587-25,782).
Bank Nifty Outlook For October 27, 2025
The Bank Nifty index is also likely to consolidate with a positive bias, supported by continued interest in quality banking names. Bajaj Broking noted, "Bank Nifty on the weekly chart has formed a high wave candle with a higher high and higher low, signaling consolidation amid stock-specific action after the recent sharp up move."
Immediate support for Bank Nifty is seen at 57,300-57,500, while a stronger demand zone lies around 56,800-56,500. On the higher side, resistance is placed near 58,500 and 59,000, levels that correspond to the 138.2% Fibonacci retracement of the previous decline.
"From an oscillator perspective, the Stochastic indicator has reversed upward and is nearing the overbought territory, suggesting a possible phase of consolidation with a positive undertone," the brokerage added.
Report Prepared by Harshika of Good Returns
source: Dailyhunt, TradingView
Disclaimer
The views and recommendations expressed are solely those of the individual analysts or entities All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.
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