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Indian stock markets are poised to start on a positive note on Friday, October 3, reacting to positive developments in domestic and global factors. The Gift Nifty settles at about 24,948, reflecting about a 19-point discount to the close of the last NIFTY futures trading session, indicating a flat to slightly positive start for benchmark indices.
Markets were closed on Thursday due to Dussehra and Gandhi Jayanti, giving investors a breather after a strong rebound on October 1, when the Reserve Bank of India (RBI) announced a policy decision that buoyed sentiment.
On Wednesday, Sensex climbed 715 points (0.89%) to 80,983.31, while Nifty 50 surged 225 points (0.92%) to 24,836.30, ending an eight-day losing streak. The increase came after the RBI held the repo rate steady at 5.5% and announced market-friendly measures aimed at strengthening liquidity and capital flows.
The reforms included easing limits on capital market borrowing, lifting the limits on loans against listed securities, and increasing flexibility for borrowers. These reforms were positively received by institutions, with financials and NBFCs rallying in anticipation of an improvement to credit growth.
Adding further optimism, the central bank raised its FY26 GDP forecast to 6.8% from 6.5% and lowered its inflation forecast to 2.6%, providing a stable macroeconomic backdrop.
Analysts see immediate resistance for the index in the 82,000-82,200 range. A clear breakout above this zone could trigger a fresh uptrend, while strong support rests at 80,000 -79,800, with deeper support at 79,500.
Nifty 50 has formed a bullish candle on the daily chart, indicating the possibility of a short-term reversal. According to HDFC Securities’ Nagaraj Shetti, Nifty’s sharp rebound from 24,500-24,400 levels (its trend line and 200-day EMA) confirms a higher bottom formation.
Resistance levels are seen at 25,000-25,200, while immediate support is pegged at 24,600. A break above 25,100 could open the door to 25,500 in the coming sessions.
Bank Nifty closed at 55,347.95 with an increase of 1.3%. The index is currently facing resistance at the 55,700-56,000 level with support at around 54,900, near the 100-day EMA. Analysts are recommending a buy-on-dips strategy, driven by the bullish Marubozu candle and strong participation from private banks.
Due to a dovish stance from the RBI, upgraded GDP forecast, and sector-specific reforms, Indian equities will follow through previous session's momentum. While volatility is likely to continue, analysts still expect benchmarks to test higher levels, especially if global cues remain strong. Banking and financial stocks should lead the market higher on any next level of gains.
