Indian Markets Poised for Recovery After Eight-Week Losing Streak

The Indian stock market is expected to open higher on Monday, October 5, 2026, following a positive signal from the GIFT Nifty futures. The GIFT Nifty is trading above 22,600, compared to the Nifty 50’s previous close of 22,422, suggesting a potential recovery. This optimism comes amid softer-than-expected U.S. employment data, which has eased concerns about further Federal Reserve tightening. However, analysts caution that elevated Treasury yields, foreign selling, and geopolitical risks could limit gains.

The Indian markets ended their eighth consecutive week of declines, with the Sensex dropping 1.52% on Monday and another 0.79% on Thursday. The Sensex closed at 71,909.70, while the Nifty settled at 22,421.95. Analysts attribute this prolonged downturn to foreign institutional selling, higher crude oil prices, a weaker rupee, and rising global bond yields.

Technical analysts remain cautious. The Sensex is trading below its 50-day and 200-day exponential moving averages, with key support seen at 71,000-71,200 and resistance at 72,300-72,500. The Nifty tested long-term support around 22,400-22,600, a level not seen in nearly six years. While oversold conditions may lead to a short-term rebound, analysts advise hedged strategies and strict stop-losses.

Meanwhile, U.S. stock futures were unchanged on Sunday, as investors awaited the Federal Reserve’s meeting minutes. The Dow Jones Industrial Average rose 0.5% on Friday, while the S&P 500 and Nasdaq gained 0.7% and 1.2%, respectively. In Asia, Japan’s Nikkei 225 climbed 2%, and Taiwan’s TAIEX surged 2.29% in early trading. South Korea’s Kospi was closed for a holiday but ended the previous week 1.1% lower.