Taking Stock: Bears tighten grip; Nifty below 22,500, Sensex sheds 571 points

Fresh updates from the financial markets indicate that In a highly volatile session on October 1, Indian key market indices ended softer, extending their losing streak for the fourth consecutive session, with the Nifty closing around 22,400.

A depreciating indian rupee, elevated US Treasury yields, elevated crude prices and sustained FII selling weighed on sentiment, dragging the Nifty to an intraday low of 22,217.30. That stated, the market staged a sharp recovery from the day's low, led by buying in IT stocks, which helped limit the losses.

At close, the Sensex was down 570.59 points or 0.79 percent at 71,909.70, and the Nifty was down 198.50 points or 0.88 percent at 22,421.95.

Broader indices underperformed the key market indices, with the Nifty Midcap index falling more than 1 percent and Nifty Smallcap index losing nearly 1 percent.

Indian equity markets will stay shut on October 2 on account of Mahatma Gandhi Jayanti.

For the week, BSE Sensex shed 2.7% and Nifty declined 3%, extended the losing streak for the 8 straight weeks for the first time in 25 years.

Biggest Nifty losers included Bajaj Auto, Maruti Suzuki, M&M, Adani Enterprises, Adani Ports, while gainers were HDFC Life, SBI Life Insurance, HDFC Bank, Infosys and TCS.

Among sectoral indices, Information Technology index further noted 2 percent and Telecom index advanced 0.5 percent. On the other hand, Auto, Media, FMCG, Infra, Metal, Consumer Durable and Realty down 2-3 percent, while Energy, Pharma, PSU Bank, Oil & Gas down more than 1 percent each.

More than 300 stocks touched 52-week low, including Escorts Kubota, PB Fintech, Gujarat Energy, Bharti Hexacom, M&M, Maruti Suzuki, JK Lakshmi Cement, Bikaji Foods, SJVN, TVS Holdings, DCM Shriram, Godawari Power, ABLBL, Jio Financial, Motherson SWI, India Cements, HUL, Ambuja Cements, P&G Hygiene and Aditya Birla Fashion, among others. Click to View More

Among individual stocks, MTNL surged 5% after its board approved the sale and transfer of its property in Powai and Sterlite Technologies rose 5% after signing a long-term supply agreement.

Kotak Mahindra Bank shares ended elevated after the RBI approved the appointment of Anup Kumar Saha as the bank’s new Managing Director and CEO.

Highway Infrastructure advanced more than 4% after receiving a ₹220.66 crore contract, while Lemon Tree Hotels rose 3% after opening a hotel in West Bengal.

In the meantime, M&M, Ashok Leyland, Maruti Suzuki, Bajaj Auto, Eicher Motors and SML Mahindra declined 2-8% after announcing their September sales data.

Indian indian rupee ended 50 paise softer at 96.32 per dollar on Thursday compared with the previous close of 95.82.

Moneyview shares ended 57% elevated at ₹53.38 after stock-exchange debut at ₹55.61, a 63.56% premium over the offering price. A-One Steels shares rose 2.3% to close at ₹414.40 after stock-exchange debut at ₹462, a premium of more than 14% over the offering price. Outlook for October 5

Shrikant Chouhan, Head Equity Research, Kotak Securities

In the shortened trading week, the key market indices corrected sharply. The Nifty ended down by 3.10 percent , while the Sensex declined nearly 2000 points. Among the sectors, almost all major sectoral indices saw earnings-booking at elevated marks. The Consumer and Auto indices lost the most, Consumer down 6.15, Auto down by 5.85 percent.

The market consistently faced selling pressure at elevated marks during the week. On the weekly charts, it formed a long bearish candle. On the intraday charts, it continued to make softer highs and softer lows, indicating a largely negative trend.

We believe the market’s short-term texture is weak but oversold. As a result, the possibility of a pullback surge from current marks cannot be ruled out. On the downside, 22,200/71300 is a key backing zone, while 22,500/72200 is an immediate resistance level. A move above 22,500/72200 could extend the pullback to 22,700–22,800/73000-73200. Conversely, a break below 22,200/71300 could accelerate selling pressure and propel the market down to 22,000–21,950/71000-70700.

For the Bank Nifty, 54,000 is a crucial backing zone. If it holds above this level, the index could bounce back to 55,000–55,500. That stated, a break below 54,000 could accelerate selling pressure and gain the chances of a slide to 53,500–53,200.

Ajit Mishra, SVP – research, Religare Broking

Markets came under renewed and sharp selling pressure on Thursday, extending the corrective trend. After a weak opening, the key market indices remained range-bound during the initial hours before a sharp bout of selling emerged in the afternoon. The Nifty eased below its critical backing zone of 22,400–22,600, while the Sensex breached its April 2026 low during the session. Both indices eventually settled at 22,421.95 and 71,909.70, respectively.

On the sectoral front, selling was broad-based, with auto stocks witnessing significant pressure post September sales numbers, followed by metal, realty, FMCG, while IT ended in the green. The broader indices too witnessed a sharp trimmed, losing nearly a percent each.

Persistent foreign selling and elevated US treasury yields continued to weigh on market sentiment, keeping the broader tone risk-averse. The renewed climb in oil price marks, along with softness in the Indian indian rupee amid sustained foreign selling, further noted to the pressure.

From a technical perspective, the Nifty decisively eased below its major long-term backing marks—the 200-week SMA and EMA around 22,600 and 22,400, respectively—and moved towards the 22,180 mark, its April 2026 low, reinforcing the prevailing bearish setup.

The 22,000–22,200 zone is likely to act as the next critical backing zone while 22,500–22,600 is likely to turn into the immediate hurdle and 22,800 stays the next major resistance. With the index extending its corrective phase and volatility rising sharply, the near-term setup stays wary, with stock-specific opportunities likely to emerge selectively.