Nifty Reaffirms Bullish Sentiment: Trade Setup for October 7
The benchmark indices on Monday extended their winning streak for the third consecutive session, closing in the green. The rally was led by strong gains in Nifty IT and Financials, helping benchmarks slightly outperform broader market indices.
According to Bajaj Broking Research, Nifty IT on Monday’s session maintained positive bias and almost tested the immediate resistance area of 25,100-25,150 being the 61.8% retracement of the recent decline (25,448-24,588).
Key Levels to Watch
The index will see a follow-through strength and a close above 25,150, Bajaj Broking said, and will signal extension of the current up move towards 25,400 levels being the trendline resistance joining the major highs of June and September 2025.
On the downside, immediate support is placed at 25,018 and 24,900, which may act as potential entry zones for long trades, according to Amruta Shinde, technical and derivative analyst at Choice Broking.
Bajaj Broking placed their immediate support on the downside at Monday’s low of 24,880 which, according to them, will act as immediate support, sustaining above which will keep the current pullback intact.
A breach below Monday’s low will signal some consolidation in the range of 24,600-25,100, Bajaj Broking Research said.
Bank Nifty Outlook
The Bank Nifty carried on its streak of outperforming the Nifty index for the fifth time in a row. It formed a bullish candle on the daily charts, with a higher high and higher low and a bullish gap below its base (55,616- 55,727), signalling continuation of the positive momentum, according to Bajaj Broking Research.
The immediate bias would continue to be positive above Monday’s gap area (55,616-55,727), index and that sustaining above 56,200 will open further upside towards 56,550 levels in the coming sessions, being the price parity of the previous up move.
On the downside, key support is placed at 55,600, and a break below this level could drag the index toward 55,400 and 55,000, Shinde said.
Market Highlights
Equity benchmarks extended their winning streak for the third consecutive session, with the Nifty 50 closing above the 25,000 mark.
Nifty 50 ended 0.74% higher at 25,077.65 and the Sensex closed 0.68% higher at 81,759.45 on Monday.
The rally was led by strong gains in Nifty IT and Financials, helping benchmarks slightly outperform broader market indices.
Shriram Finance emerged as the top gainer on the Nifty, followed closely by Apollo Hospitals. Meanwhile, the Nifty Midcap 150 index posted gains for the fifth straight day, with Fortis Healthcare and Nykaa leading the charge in the midcap space.
The rupee ended flat at 88.79 (provisional) against the US dollar on Monday, according to Bloomberg.
Investment Strategy
Investors can look to buy stocks with strong fundamentals and growth potential, such as those in the Nifty IT and Financials sectors.
However, it’s essential to keep a close eye on the key levels and adjust your investment strategy accordingly. A breach below the support levels could signal a consolidation phase, and investors should be prepared to take a more cautious approach.
Conclusion
In conclusion, the Nifty has reaffirmed its bullish sentiment, and investors can look to buy stocks with strong fundamentals and growth potential. However, it’s crucial to keep a close eye on the key levels and adjust your investment strategy accordingly.
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