Indian Stock Market Outlook: Nifty 50 and Sensex Expected to Rise on October 10

The Indian stock market is expected to open higher on Thursday, October 10, following a rally in global markets after the S&P 500 and Dow Jones reached record highs. The trends in the Gift Nifty also suggest a positive start for Indian benchmarks, trading around the 25,200 mark, which is nearly 80 points above the previous Nifty futures close.

On Wednesday, the domestic stock indices ended lower due to profit-taking after the Reserve Bank of India’s policy announcement. The Sensex dropped by 167.71 points, closing at 81,467.10, while the Nifty 50 fell 31.20 points, or 0.12%, to settle at 24,981.95.

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Market Trends and Predictions

Nifty 50 formed a small negative candle on the daily chart, indicating potential market weakness. Nagaraj Shetti, a Senior Technical Research Analyst at HDFC Securities, noted this pattern suggests the bulls were rejected at higher levels. He mentioned that a significant market bottom has yet to be confirmed.

For Nifty to show signs of a reversal, it needs to maintain above the 25,200 – 25,300 levels, which could indicate further upward movement. Strong support is anticipated around the 24,700 – 24,600 levels.

According to Hardik Matalia, a Derivative Analyst at Choice Broking, Nifty’s Open Interest data shows significant activity at the 25,200 and 25,300 strike prices on the call side, while the put side is focused on the 24,800 and 24,700 levels.

Nifty 50 and Bank Nifty Predictions

• Nifty 50: The index could face resistance at 25,100, with support around 24,940. If it drops below this level, it may correct down to 24,800 or 24,700. Aditya Agarwal from Sanctum Wealth expects Nifty to trade within a broad range of 24,800 – 25,240 for the next few sessions.
• Bank Nifty: After a brief surge post-RBI policy, Bank Nifty closed lower at 51,007. The index is expected to find support around 50,640 and 50,460, while resistance levels are seen around 51,740 and 52,080. Agarwal suggests entering long positions if the index dips toward support levels.

Investors should remain cautious and consider a sell-on-rise strategy, as the market trends may remain bearish in the coming days.