Nifty 50 and Sensex Outlook for October 7: What to Expect from the Stock Market Today

Indian stock markets, including Sensex and Nifty 50, are expected to start Monday’s trading on a positive note after last week’s heavy losses, boosted by gains in global markets. The Gift Nifty index also indicates a positive opening, trading around the 25,250 level, which is about 60 points higher than the previous close of Nifty futures.

Last week, the Indian markets experienced a sharp decline, with Sensex dropping 808.65 points (0.98%) to close at 81,688.45 and Nifty 50 falling 235.50 points (0.93%) to settle at 25,014.60 on Friday.

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Bearish Market Signals Continue for Nifty 50

Nifty 50 formed a “bear candle” on the daily chart, with long upper shadows, signaling a “sell on rise” trend. According to Nagaraj Shetti, Senior Technical Analyst at HDFC Securities, this pattern suggests that the market could continue its downward trend. On the weekly chart, Nifty 50 formed a large bearish candle, undoing the gains of previous weeks, indicating a potential reversal of the recent uptrend. Shetti believes that while there may be a small bounce from the current support level of 25,000, it could still be an opportunity for selling. If the index falls below 25,000, it could drop further to 24,500 in the near term.

Nifty 50 and Bank Nifty Predictions for Today

Nifty 50

According to Mandar Bhojane, Technical Analyst at Choice Broking, options data shows strong support around the 24,500 level, while resistance is seen at 25,400-25,500 levels. Traders should stay cautious, use strict stop-losses, and avoid holding long positions overnight due to market volatility.

Rupak De, Senior Technical Analyst at LKP Securities, noted that after a sharp fall, Nifty 50 is expected to find support around 24,750, while resistance will likely be seen at 25,300. The market has turned weak, and selling is expected at higher levels.

VLA Ambala, Co-Founder of Stock Market Today, pointed out that Nifty 50 has dropped nearly 5% over the last five sessions and remains in a bearish zone. She recommends a “sell on rise” strategy, with key support levels between 24,000 and 23,800, and resistance between 25,170 and 25,300. Current market conditions are not favorable for long-term investors, leading to increased profit-booking.

Bank Nifty

On Friday, Bank Nifty fell 383.15 points (0.74%) to close at 51,462.05, forming a bearish candlestick pattern. Aditya Agarwal, Head of Derivatives & Technical Analysis at Sanctum Wealth, noted that while Bank Nifty briefly crossed 52,000 during intraday trading, it faced heavy selling pressure in private sector banks towards the end of the session. He expects Bank Nifty to find support between 51,000-50,840 and face resistance around 52,000-52,150 levels.

Dr. Praveen Dwarakanath, Vice President of Hedged.in, believes that Bank Nifty has taken support at its 20 EMA level of 51,300. While a short-lived bounce is possible due to oversold conditions, the overall trend remains weak, with resistance above 51,500 based on options data.