Benchmark indices Sensex and Nifty pared their losses on October 28 due to value buying. The Sensex rose 500 points from the day's low, while Nifty traded near 22,650. Analysts said, "Failure to move above 22,830 will signal extension of the last three sessions consolidation in the range of 22,370-22,830."

Benchmark indices Sensex and Nifty pared their losses on October 28 due to various reasons, including value buying.

At 11:58 am, the Sensex was down 489.77 points or 0.67% at 73,108.90, and the Nifty was down 105.95 points or 0.47% at 22,643.80. About 1,723 shares advanced, 1,980 shares declined, and 170 shares were unchanged.

Key reasons behind markets paring losses

1) Value buying

Value buying emerged at lower levels as benchmarks fell up to 1.25% on October 28. Sensex rose 500 points from day's low while Nifty was near 22,650-mark.

2) FII buying

Foreign portfolio investors bought a net Rs 4,240 crore of Indian equities on Tuesday, their largest daily purchase in nearly two months, according to provisional ‌NSE data. ⁠Domestic institutional investors were net sellers, offloading shares worth Rs 1,250 crore.

3) Technical reason

Nifty needs to trade below 22,500 for any further bearishness to emerge in the market, said analysts.

"Failure to move above 22,830 will signal extension of the last three sessions consolidation in the range of 22,370-22,830. Within the consolidation immediate support is placed at 22,500-22,630 being the confluence of Tuesday low and retracement of last two sessions pullback," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.

"After the recent pressure, the 22,500 level will be an important support to watch, while 22,700–22,800 is likely to act as the immediate resistance zone. The market remains under pressure, and a sell-on-rise approach looks preferable until Nifty shows a sustained recovery above resistance. However, after a sharp gap-down, traders should avoid chasing fresh shorts at the opening and watch how the index reacts around support. A decisive break below 22,500 could trigger further weakness, while a recovery towards 22,700–22,800 may attract selling pressure. The focus will remain on whether Nifty can hold the 22,500 zone or whether selling intensifies further," said Gaurav Udani, Founder, Thincredblu Securities.