Indian Stock Market Faces Eighth Week of Declines on October 5
The Indian stock market is poised for a cautious recovery as GIFT Nifty indicates a positive start despite ongoing selling pressure.
Sensex and Nifty continue their longest losing streak in 25 years.
GIFT Nifty futures suggest a potential rebound with early trading above 22,600.
Market analysts recommend a hedged strategy amid bearish trends.
On October 5, 2026, the Indian stock market is anticipated to open positively, buoyed by GIFT Nifty futures indicating a recovery attempt. The GIFT Nifty was trading above 22,600, compared to the Nifty 50's previous close of 22,422, suggesting a cautious optimism among investors. This comes after a week where Asian markets showed gains and U.S. stock futures closed positively, easing some concerns over Federal Reserve tightening due to softer employment data.
The Indian market has been under significant pressure, marking its eighth consecutive week of declines. The benchmark indices have faced persistent selling, with the Sensex dropping 1.52% on Monday alone and closing at 71,909.70, down 1,670.84 points overall. Analysts attribute the downturn to factors such as foreign institutional selling, high crude oil prices, and a weaker rupee, all contributing to a challenging investment climate.
Ponmudi R, CEO of Enrich Money, noted that both the Nifty 50 and Sensex are trading below their 50-day and 200-day exponential moving averages, indicating a bearish trend. The relative strength index (RSI) has fallen to 24.55, suggesting oversold conditions. Key support for the Sensex is identified between 71,000 and 71,200, while resistance levels are seen at 72,300 to 72,500.
On the Nifty 50 front, Ajit Mishra from Religare Broking highlighted that the index has tested crucial long-term moving average support zones around 22,400 to 22,600. Although the broader trend remains bearish, the potential for a short-term recovery exists due to strong technical support. Mishra advises investors to adopt a hedged strategy, with initial targets set at 22,800 and 23,100 to 23,200.
Looking ahead, the U.S. stock futures remained stable as investors await insights from the Federal Reserve's recent meeting. The Dow Jones Industrial Average and S&P 500 both saw gains last week, while Japan's Nikkei 225 rose significantly. However, the South Korean market is closed today for a national holiday, and Taiwan's TAIEX index is showing positive movement. Investors are advised to remain cautious and consider expert guidance before making investment decisions.
