The Indian stock market is likely to open on a softer note on Monday, October 6, despite strong gains in most of the Asian indices. The Gift Nifty is trading around 24,962, indicating a muted start for the domestic indices, reflecting a discount of nearly 44 points from Nifty futures’ previous close.
On Friday, both Nifty and Sensex closed higher, extending the gains for the week. The Sensex increased 223.86 points (0.28%) to settle at 81,207.17, and Nifty 50 increased 57.95 points (0.23%) to settle at 24,894.25.
Sensex has formed a near-term reversal pattern on daily charts, supported by last week’s 0.97% gain and a small bullish candle on the weekly timeframe.
Analysts expect immediate support between 80,800-80,200, while resistance is at around 81,500-81,700.
A sustained move above the 20-day SMA near 81,400 could lift the index toward 81,900. However, a drop under 80,200 may weaken sentiment and trigger profit-taking.
PhonePe Wealth's Mayank Jain suggests that traders should stay alert just below 80,700, as a breach may test the 80,500 level.
Nifty 50 has continued its reversal for the second consecutive session, forming a bullish candle closing. The index continues to hold its crucial support zone at 24,500-24,600.
The short-term trend remains positive, with the target on the upside for this week at the level of 25,200. Immediate support lies near 24,750.
The index holding above 24,600 keeps momentum intact, and a decisive breakout above 25,050 could open the path toward 25,250- 25,500.
Bank Nifty closed at 55,589.25 on Friday, up 0.44%, logging a weekly gain of 2.21%. The index has reclaimed its key moving averages, supported by improving momentum indicators.
Analysts expect near-term targets of 56,200 and 57,000 with robust support in the zone of 54,900-55,000.
Metal stocks rose 1.8% last week due to steady global prices and supply pressures, while defence and capital-goods stocks have maintained their strength. Lower Brent crude prices, now at 16-week lows, are reducing inflation and pressure from import costs, benefiting sectors like FMCG, paints, and aviation.
Positive updates from value retailers and stronger auto sales and tractor sales indicate better consumption in Tier-2 and Tier-3 markets as we head into the festive season.
Globally, investors await the US Services PMI and Non-Manufacturing PMI data later today, which could influence overall risk sentiment and determine the near-term direction of Indian equities.
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