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Below the Quote on Market Closing Comment 7th Oct 2026 from Ajit Mishra, SVP – research, Religare Broking

"Markets reversed the recent gains on Wednesday and ended lower amid volatility, weighed down by a combination of domestic and global factors. After a weak opening and an initial recovery attempt, the benchmark indices failed to sustain their gains and oscillated within a narrow range. The Nifty closed at 22,603.05, down 0.76%, while the Sensex settled at 72,638.70, lower by 0.49%.

On the sectoral front, metal remained the key drag, followed by realty and auto, while banking and media ended with modest gains. Meanwhile, the broader indices traded mixed, with the midcap index declining 0.61%, while the smallcap index gained 0.38%.

The overall market tone remained neutral following the RBI’s widely anticipated 25-bps repo rate hike to 5.5%, with the stronger growth outlook initially supporting rate-sensitive sectors like banking. However, sentiment softened as investors weighed the higher inflation outlook and shift to a calibrated tightening stance, keeping the broader market mood cautious. Global macro concerns added to the pressure, with Brent crude rebounding above $101 a barrel, while continued foreign outflows, elevated global bond yields and rupee weakness remained key overhangs for domestic equities.

Technically, the Nifty’s inability to cross the 22,800 zone reaffirms the prevailing cautious undertone in the near-term setup. The 22,500 remains the immediate support, followed by the 22,400-22,200 level, while 22,800–23,000 is likely to act as the key resistance zone. For now, a selective and hedged approach remains suitable, with a preference for stock-specific opportunities rather than aggressive index-level exposure."

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