Indian equities are set for a positive opening on Monday after six consecutive sessions of losses, as early trends on the Nifty point to a gap-up start. The index was quoting around 24,816, nearly 126 points higher than Nifty futures’ last close, indicating that the benchmark indices Sensex and Nifty 50 could begin trade on a stronger note despite mixed global signals.
On Friday, domestic markets witnessed sharp selling pressure with both benchmark indices slipping nearly 1%. Sensex dropped 733 points, or 0.90%, to close at 80,426, while the Nifty 50 declined 236 points, or 0.95%, to finish at 24,654. Persistent foreign investor outflows and weakness in global peers dragged indices lower, marking the sixth straight day of declines.
Technical charts indicate the short-term trend in Sensex remains fragile, with the index forming a bearish candle on weekly charts. Analysts highlight that 81,200 will act as an important level of resistance; only a decisive move above 81,800-82,200 could re-establish recovery. On the downside, support is at 80,300; if this breaks, a decline to 79,800-79,600 can be seen.
Analysts also highlight the significance of the 200-day EMA zone at 80,100-80,000, which may act as a strong support. A sustained breakdown below this zone could take the index to 79,300.
Nifty 50 is displaying a bearish structure after breaking key support zones and forming consecutive lower highs and lower lows. According to analysts, the index could decline towards 24,400-24,300 in the short term, while immediate support is at 24,500.
On the upside, resistance is seen at 24,850-24,900, and only a breakout above 25,000 can reverse the trend. Market strategists suggest that traders should be careful and adopt a cautious, sell-on-rise approach until the index gets back above 25,350.
Bank Nifty closed at 54,389, down 587 points on Friday, forming a bearish weekly candle. The index is already trading below its 20-, 50-, and 100-day EMAs with momentum indicators indicating further weakness.
Key support lies near the 200-day EMA around the 53,700-53,800 level, and a breach below this level could extend the correction down to 53,000. Resistance, meanwhile, has shifted lower to 54,700-54,900.
Also Read: S&P 500, NASDAQ, and Dow Jones rise 0.3%, US Dollar dips 0.2%, Gold jumps 0.8%
Investors will closely watch global cues this week, alongside domestic triggers such as the RBI’s Monetary Policy Committee meeting starting September 29. The central bank is widely expected to maintain the status quo on rates.
Additionally, the US jobs data on October 3, new tariffs on pharma counters, and increased visa fees affecting IT companies could create volatility. Ongoing foreign institutional outflows of more than Rs. 30,000 crore so far in September are another negative sentiment factor for the market.
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