Stock Market Outlook Today, October 27: Sensex, Nifty Likely To Remain Volatile Ahead of Monthly Expiry

Indian stock market is likely to trade with a cautious, sideways bias on Tuesday, October 27, as investors assess global cues, elevated crude oil prices and ongoing geopolitical tensions. Benchmark indices staged a strong recovery on Monday, snapping a four-session losing streak, but uncertainty surrounding the US Federal Reserve's upcoming policy decision and the monthly derivatives expiry could keep volatility elevated.

Stock Market Outlook Today, 27 October 2026: Sensex, Nifty Prediction for Tuesday

Investors will also monitor developments in the Middle East, particularly continued attacks on Saudi Arabia and the resulting concerns over potential disruptions to global oil supplies. With major central bank policy decisions scheduled this week, market participants are likely to remain watchful before taking fresh positions.

"Indian stock markets are expected to trade sideways until greater clarity emerges on global cues and policy decisions. Markets are expected to sustain at current levels, however, continued attacks on Saudi Arabia have kept concerns over potential supply disruptions elevated. Investors will track key policy decisions from the US Federal Reserve on October 28, the European Central Bank (ECB) on October 29 and the Bank of Japan (BOJ) on October 30," said Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

Benchmark indices recovered sharply from their intraday lows on October 26, supported by buying demand at lower levels. The rebound brought an end to the four-session losing streak, although market sentiment remained cautious amid rising crude oil prices, geopolitical uncertainty and concerns ahead of the monthly expiry.

The Sensex gained 482.92 points, or 0.66%, to close at 73,606.75. The Nifty 50 advanced 153.20 points, or 0.68%, to settle at 22,753.20.

Despite Monday's recovery, the indices continued to face uncertainty as investors assessed whether the rebound could extend into the next session or whether the market would remain within a consolidation range.

Nifty Prediction Today, October 27: Key Support and Resistance Levels

According to Bajaj Broking Research, the Nifty formed a sizable bullish candle on Monday, although it remained within the previous session's trading range. This indicates consolidation with a positive bias.

The index opened on a weak note and moved lower during the first hour, touching an intraday low of 22,387. Buying interest near the previous week's low helped it recover its losses and close around 22,750, approximately 350 points above the day's low.

The Nifty also rebounded from the 80% retracement level of its previous six-session upward move from 22,180 to 23,175, indicating buying demand at lower levels.

"Going ahead, follow through strength above 20 days EMA placed at 22,820 will signal further pullback towards the key resistance area of 23,100-23,200 being the confluence of last week high and 50 days EMA. Failure to move above 22,820 will signal extension of the last two sessions consolidation in the range of 22,370-22,820," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

For Tuesday's session, 22,820 is the immediate resistance level to watch. A sustained move above this level could support a recovery towards 23,100-23,200. On the downside, 22,370 remains an important support level, with a break below it potentially extending the consolidation phase.

Bank Nifty Prediction Today: Will Index Move Towards 55,000?

The Bank Nifty also recovered on Monday, ending its four-session decline and closing around the 54,300 mark. Bajaj Broking Research noted that the index formed a bullish hammer-like candle, indicating buying interest at lower levels.

The next directional move will depend on whether the index can sustain its recovery and move above Monday's high. Going ahead, a follow through buying momentum above Monday's high 54,400 will open pullback towards 55,000 levels in the coming sessions.

"While weakness below Monday's low 53,777 will signal extension of decline towards key short-term support at 53,500-53,000 being the confluence of the trendline support joining previous major lows and key retracement of the previous major up move," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

For Tuesday, 54,400 is the immediate level to watch on the upside, with 55,000 emerging as the next potential recovery target if buying momentum continues. On the downside, 53,777 is the immediate level to monitor, while the 53,500-53,000 zone remains a key short-term support area.

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