Bearish momentum in the market expected to continue

Nifty technical outlook based on market closing on October 4:

In Friday's trading session, the Nifty index closed at 25,014.60, a decline of 235.50 points or 0.93%. The bearish momentum is expected to continue if the index slips below the key intraday support level of 25,000.

The Nifty opened lower at 25,181.90 in the previous session, and after briefly reaching an intraday high of 25,485.10 during early trade, it lost steam, falling sharply to an intraday low of 24,966.80 before settling at 25,014.60. Most sectors ended in negative territory, except PSU banks and IT. The biggest losers were the media, FMCG, realty, and auto sectors.

Market breadth remained weak, with 837 stocks advancing, 1,833 declining, and 68 remaining unchanged. Top gainers within the Nifty included INFY, ONGC, HDFC Life, and Tech Mahindra, while the biggest laggards were Mahindra & Mahindra, Bajaj Finance, Nestlé India, and Hero MotoCorp.

Downtrend may continue

From a technical perspective, momentum indicators point to a continued downtrend, with the Nifty trading below its short-term moving averages. The formation of a black candle on the daily chart and a close below the previous day's level indicates that the bears remain in control.

On the downside, intraday support is at 25,000. If the index breaks below this level, the negative trend is likely to extend. On the upside, the nearest intraday resistance is at 25,125. A break above this resistance would be necessary to trigger a pullback rally.

Intraday levels:

• Support: 25,000, 24,850, 24,700
• Resistance: 25,125, 25,300–25,470 (15-minute charts)

Positional trading levels:

• Short-term support: 24,800–24,100
• Resistance: 25,500–26,275

Bank Nifty technical outlook

The Bank Nifty index closed at 51,462.05, marking a drop of 383.15 points. Technically, momentum indicators continue to signal a negative trend, with the index trading below its short-term moving averages. Similar to the Nifty, a black candle formed on the daily chart, closing below the previous session's level, reinforcing the bearish bias.

On the downside, intraday support for Bank Nifty is at 51,400. If the index breaks below this level, further downside movement is anticipated. On the upside, the nearest resistance is at 51,750. A pullback rally could occur if the index sustains trading above this resistance level.

Banking intraday levels (15-minute charts):

• Support: 51,400, 51,150, 50,850
• Resistance: 51,750, 52,000, 52,350

Positional trading levels:

• Short-term support: 50,500–49,600
• Resistance: 51,750–52,800