On Tuesday, October 7, the stock market is likely to start on a cautious note due to mixed signals from global peers, despite the Nikkei and Nasdaq hitting record highs overnight. The Gift Nifty indicates a muted start with the Gift Nifty at 25,159, about 26 points lower than Nifty futures’ previous close.

On Monday, the market extended its rally, driven by technology and banking sectors. Sensex climbed 582.95 points (0.72%) at 81,790.12 and Nifty 50 gained 183.40 points (0.74%) at 25,077.65, well above the 25,000 mark.

Sensex Outlook

Sensex has maintained a positive undertone and has formed a strong positive candle on the daily chart, indicating more upside in the near future.

Analysts say the index remains in a firm uptrend, although they advise traders to buy on dips and sell near resistance areas.

Near-term support is available in the 81,500-81,300 zone, and resistance is expected between the 82,000-82,200 zone. Experts say the overall trend remains optimistic as long as the 81,300 level holds as support; however, a break below may signal weakness in the near term.

Nifty 50 Outlook

For the third straight day, Nifty 50 maintained its upward momentum, forming a long bullish candle on the daily chart. signaling sustained upward momentum. 

Technical analysts view that the trend remains constructive as the index is now comfortably above all the key moving averages.

Support is seen near 24,900, with resistance at the 25,300-25,400 zone. Analysts expect a potential rally toward 25,500 if the index sustains above 25,020. Indicators such as RSI and MACD also confirm strengthening momentum.

Bank Nifty Outlook

On Monday, Bank Nifty index added 515.60 points (0.93%) to settle at 56,104.85, establishing a bullish formation on the back of a positive crossover of the short- and medium-term moving averages. 

With RSI moving above the 60 mark and MACD confirming a bullish signal, the index seems well placed to move toward 56,600-57,000 levels. Support levels seem to be in the vicinity of 55,700-55,600 levels, and any dips towards this range may attract fresh buying.

Also Read: US Stock Market Today: S&P 500 rises 0.4%, NASDAQ jumps 0.8%, AMD surges 27%, Dow Jones slips 0.3%, Gold climbs 1.7%

Sectoral View & Market Sentiment

Shares from IT, healthcare, and private banking rallied on Monday, while minor profit-taking was seen in metals and FMCG. Nifty Midcap100 was up by 0.7% and the Smallcap100 was up by 0.1%, showing the strength in the broader market.

Analysts anticipate that individual sectors will be the main focus in the Q2 FY26 earnings season, with the IT, banking, capital goods, and consumption sectors of particular interest. Even as the Gift Nifty showed a slow start, sentiment remains optimistic as long as Nifty stays above 25,000.