Indian equity benchmarks ended on a strong note, with the Nifty50 comfortably crossing the 25,000 marks on October 6, reaffirming the prevailing bullish sentiment. Domestic markets extended their winning streak for the third consecutive session, buoyed by firm global cues and renewed optimism ahead of the Q2 earnings season. Positive expectations around robust credit growth and stable lending margins, particularly within the financial space, further underpinned market momentum.

At the close, the Sensex gained 582.95 points or 0.72% to settle at 81,790.12, while the Nifty rose 183.40 points or 0.74% to end at 25,077.65. Sectorally, the IT index outperformed with a 2% gain, followed by healthcare and private banks, each up 1.2%, while oil & gas and PSU banks added 0.7% and 0.4%, respectively. In contrast, metal, media, and FMCG indices witnessed mild profit-taking, slipping 0.2%–0.9%. On the broader market front, the Midcap index advanced 0.89%, and the Small-cap index also closed firm with gains of 0.28%.

Nifty Outlook

On the daily chart index has formed a strong bull candle with a higher high and higher low signaling continuation of the pullback for the third session in a row. The index in the process closed above the 20 & 50 days EMA. Nifty on Monday’s session on expected lines maintained positive bias and almost tested the immediate resistance area of 25100-25150 being the 61.8% retracement of the recent decline (25,448-24,588).

Going ahead a follow through strength and a close above 25150 will signal extension of the current up move towards 25,400 levels being the trendline resistance joining the major highs of June & September 2025. On the downside Monday’s low of 24,880 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 24600-25100.

Bank Nifty Outlook

Bank Nifty continues to outperform the Nifty as it gained for the fifth session in a row. On the daily chart, it has formed a bullish candle with a higher high and higher low and a bullish gap below its base (55616- 55727) signaling continuation of the positive momentum. Index on Monday’s session on expected lines maintained positive bias and tested the immediate resistance area of 56,150 levels being the confluence of the 61.8% retracement of the entire decline ( 57628-53561) and the high of August 2025. Immediate bias remains positive above Monday’s gap area (55616- 55727), index 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. Short-term support is placed at 55,000-54,800 levels while a move above 56,550 will extend the rally towards 57,300 levels in the coming weeks.

Motilal Oswal Financial Services Ltd

Nifty50 ended higher for the third consecutive session crossing the crucial 25k mark, led by gains in banking and IT stocks together with the recent central bank lending reforms boosting investor sentiment. Nifty added 183 points to close at 25,077 (+0.7%), with Nifty Midcap100 and Smallcap100 up by 0.7% and 0.1% respectively. Amongst sectors, the IT index rose over 2% ahead of the Q2FY26 results season, with TCS earnings announcement on October 9th.

"However, we expect 2Q to be a muted quarter for IT services, with no material improvement over the past quarter. Bank Nifty advanced for fifth straight session to reclaim 56,000-mark on strong Q2 business updates from HDFC and Kotak Mahindra Bank. Hospital stocks gained upto 6% after the government rationalised rates for nearly 2,000 medical procedures under the Central Government Health Services Scheme (CGHS) with effect from October 13th. Meanwhile, Nifty Metal declined more than 1% amid profit booking after a recent rally in the sector. Overall, we expect Q2FY26 to mark a bottoming of earnings growth and a moderation in the trajectory of earnings cuts with Nifty earnings anticipated to grow by 6% YoY," says Siddhartha Khemka - Head of Research, Wealth Management.

This quarter will also reflect the initial impact of GST 2.0 reforms across select sectors. Corporate commentaries accompanying earnings releases will be key to assessing how the structural policy changes are shaping demand and profitability. The primary market continues to witness heightened activity with big size IPOs including Tata Capital and LG Electronics India lined up in this week.  With Nifty sustaining above the 25,000 mark, market sentiment remains constructive. Stock-specific action is expected to dominate in the near term,  as the Q2 results season unfolds, with sectors such as banking, IT, capital goods, and consumption likely to remain in focus.

Also Read: Bajaj Broking & MOFSL Daily Market Closing Commentary

Ashika Institutional Equities 

Indian equity markets opened on a positive note, mirroring the upbeat global sentiment. The Nifty 50 index began the session at 24,916 and touched an intraday low of 24,881 before witnessing a steady upward move throughout the day. The rally was primarily driven by strong business updates from the banking and NBFC sectors, which lifted overall market sentiment.

Sectorally, strength was observed in IT, Banking, Healthcare, and Oil & Gas stocks, while some profit booking was noted in the Metal space. In the derivatives segment, the most active contracts were FORTIS, MAXHEALTH, BSE, SHRIRAMFIN, and TCS, reflecting robust trading interest across select counters.

From a technical perspective, Nifty has successfully broken above the key psychological and technical resistance level of 25,000, turning the structure decisively positive. Any dip toward the 25,000 zone is expected to act as a strong support level, with immediate resistance seen at 25,200 and 25,500. For Bank Nifty, support is placed at 56,000–55,900, while resistance levels are identified at 56,500 and 57,000.