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Market Closing Commentary

Indian equity benchmarks ended on a strong note, with the Nifty50 comfortably crossing the 25,000 marks on October 6, reaffirming the prevailing bullish sentiment. Domestic markets extended their winning streak for the third consecutive session, buoyed by firm global cues and renewed optimism ahead of the Q2 earnings season. Positive expectations around robust credit growth and stable lending margins, particularly within the financial space, further underpinned market momentum. At the close, the Sensex gained 582.95 points or 0.72% to settle at 81,790.12, while the Nifty rose 183.40 points or 0.74% to end at 25,077.65. Sectorally, the IT index outperformed with a 2% gain, followed by healthcare and private banks, each up 1.2%, while oil & gas and PSU banks added 0.7% and 0.4%, respectively. In contrast, metal, media, and FMCG indices witnessed mild profit-taking, slipping 0.2%–0.9%. On the broader market front, the Midcap index advanced 0.89%, and the Small-cap index also closed firm with gains of 0.28%.

Nifty Outlook

On the daily chart index has formed a strong bull candle with a higher high and higher low signaling continuation of the pullback for the third session in a row. The index in the process closed above the 20 & 50 days EMA. Nifty on Monday’s session on expected lines maintained positive bias and almost tested the immediate resistance area of 25100-25150 being the 61.8% retracement of the recent decline (25,448-24,588). Going ahead a follow through strength and a close above 25150 will signal extension of the current up move towards 25,400 levels being the trendline resistance joining the major highs of June & September 2025. On the downside Monday’s low of 24,880 will act as immediate support sustaining above which will keep the current pullback intact. A breach below Monday’s low will signal some consolidation in the range of 24600-25100.

Bank Nifty Outlook

Bank Nifty continues to outperform the Nifty as it gained for the fifth session in a row. On the daily chart, it has formed a bullish candle with a higher high and higher low and a bullish gap below its base (55616- 55727) signaling continuation of the positive momentum. Index on Monday’s session on expected lines maintained positive bias and tested the immediate resistance area of 56,150 levels being the confluence of the 61.8% retracement of the entire decline ( 57628-53561) and the high of August 2025. Immediate bias remains positive above Monday’s gap area (55616- 55727), index sustaining above 56,200 will open further upside towards 56,550 levels in the coming sessions, being the price parity of the previous up move. Short-term support is placed at 55,000-54,800 levels while a move above 56,550 will extend the rally towards 57,300 levels in the coming weeks.

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