Stock Market Outlook: Sensex, Nifty Likely to Trade Cautiously Ahead of US PMI Data, Bank Nifty to Consolidate

Indian stock markets are likely to begin Friday's trade on a cautious and range-bound note, as investors digest weak global cues and await key U.S. economic data, including ISM Manufacturing and Services PMI readings.

Stock Market Outlook for 7 November 2025

Dalal Street ended Thursday's session (November 6) on a subdued note, as global cues and profit-booking dragged major indices lower. According to Bajaj Broking Research, both the Sensex and Nifty saw mild declines amid weak investor sentiment and a cautious risk-off mood ahead of key U.S. economic data releases.

"Indian equity markets finished on a subdued note on November 6th, with the Nifty retreating toward the 25,500 level as overall sentiment remained weak and investors adopted a risk-off approach," said Bajaj Broking Research in its post-market report.

The brokerage added that investor focus has now shifted to the U.S. ISM Manufacturing and Services PMI readings, which are expected to provide vital cues on global growth trends and influence equity market sentiment worldwide.

By the closing bell, the Sensex slipped 148 points (0.18%) to end at 83,311, while the Nifty 50 declined 88 points (0.34%) to settle at 25,510. Selling pressure was most visible in metal, power, realty, and media stocks, which fell between 1.5% and 2.5%. Meanwhile, auto and IT sectors offered some support, registering marginal gains. In the broader markets, the Midcap index dropped 0.95%, and the Small-cap index fell 1.39%, signaling sustained profit booking and cautious investor positioning.

Nifty Prediction Today: What Traders Can Expect on November 7, 2025?

According to Bajaj Broking Research, the Nifty index continued its downward trajectory, forming a bearish candlestick pattern with a lower high and lower low for the fifth consecutive session, highlighting ongoing profit-booking pressure.

"Over the past ten trading sessions, the Nifty has undergone a corrective retracement of approximately 600 points, effectively unwinding the overbought readings that had emerged on the daily stochastic oscillator following a sharp 1,500-point rally over the preceding four weeks," the brokerage noted.

Technically, Bajaj Broking pointed out that the index is now approaching a crucial demand zone between 25,500 and 25,300, which could serve as a strong support base in the near term.

"A decisive formation of a higher high and higher low will signal a pause in the current decline and open pullback towards immediate resistance of 25,850," the report said. Beyond that, the 26,100 level, which represents the twin highs of the past two weeks, would act as the next resistance and could trigger a renewed leg higher if breached decisively.

Bank Nifty Outlook Today for 7 November 2025

Bajaj Broking Research highlighted that the Bank Nifty index has been witnessing consolidation, forming a bear candle with a lower high and lower low, indicating a pause amid stock-specific movements.

"Going ahead, the index is likely to extend consolidation of the last two weeks in the range of 57,300-58,500, thereby forming a base for the next leg of the up move," the brokerage observed.

A close below 57,300 could open the downside towards the key support zone of 56,800-56,500, while on the upside, the immediate resistance is pegged at the recent all-time high of 58,577.

"A move above the same will open further upside towards 59,000, being the 138.2% Fibonacci projection of the recent correction (57,628-53,561)," Bajaj Broking added. The research house maintained a positive overall outlook on the banking index, suggesting that current pullbacks should be viewed as buying opportunities within the identified support areas.

The brokerage further noted that PSU banking stocks are expected to extend their recent outperformance, driven by strong earnings visibility and improving asset quality trends.

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