Nifty 50 and Sensex Set for Weak Opening Amid Global Market Pressure: What to Expect on October 8

The Indian stock market, including the Sensex and Nifty 50, is expected to start lower on Tuesday, influenced by weakness in global markets.

The Gift Nifty suggests a negative opening for the Indian index, trading around 24,885, about 100 points below the previous close of Nifty futures.

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On Monday, the Sensex dropped by 638.45 points (0.78%) to close at 81,050.00, while the Nifty 50 fell 218.85 points (0.87%) to 24,795.75, extending the market’s losing streak to six sessions.

Nifty 50 formed a “bear candle” on the daily chart, signaling continued downward momentum. According to Nagaraj Shetti, Senior Technical Analyst at HDFC Securities, Nifty 50’s chart pattern suggests that any bounce back will likely be short-lived, potentially creating new lower levels. He expects Nifty 50 to dip towards support levels of 24,500 to 24,400 in the short term.

Nifty 50 Outlook:

After a sharp fall on October 7, Nifty 50 closed below the 25,000 mark, continuing its downtrend. Aditya Agarwal, Head of Derivatives & Technical Analysis at Sanctum Wealth, said that while the index is in an oversold zone and might see a pullback to 25,200 or 25,350, the overall outlook remains bearish. A close below 24,700 could lead to further declines towards 24,450 or even 24,249 in the coming days.

VLA Ambala, Co-Founder of Stock Market Today, suggests adopting a “sell on rise” strategy due to increased market volatility. She advises newer investors to hedge their portfolios to manage the fluctuations, predicting Nifty 50 will find support between 24,630 and 24,470, with resistance between 24,930 and 25,040.

Dr. Praveen Dwarakanath, Vice President at Hedged.in, noted that while Nifty 50 closed near a key support level of 24,800, its momentum indicators suggest it could experience a short-term “dead cat bounce,” though this is likely to be brief. If Nifty 50 closes below 24,800 this week, it could fall further to 24,000.

Bank Nifty Outlook:

On Monday, Bank Nifty dropped by 983.15 points (1.91%) to close at 50,478.90, breaking below key support levels and forming a large red candle on the daily chart. According to Dr. Dwarakanath, Bank Nifty’s next major support is around 49,500, with more weakness ahead. He also highlighted increased call writing and short covering in puts, indicating bearish sentiment.

Aditya Agarwal expects Bank Nifty to find immediate support around 50,100 to 49,750, with potential for a brief pullback. However, resistance is likely at 51,260 to 51,840, where fresh selling pressure could emerge.