Nifty closes under 25,100, Sensex snaps 4-session winning streak in a volatile session

Sensex, Nifty took a U-turn from morning highs to settle in the red.

Domestic indices Nifty 50 and Sensex snapped a four-session gaining streak on Wednesday, October 8, after weak global cues dampened the sentiment, leading to some profit-booking in a volatile session.

At close, the Sensex was down 153.09 points or 0.19 percent at 81,773.66, and the Nifty was down 62.15 points or 0.25 percent at 25,046.15. About 1697 shares advanced, 2297 shares declined, and 138 shares unchanged.

On the sectoral front, IT stocks outperformed on resilient demand and attractive valuations, while Auto, Banking, and FMCG faced profit-taking pressure

"Heightened global uncertainties and the ongoing US government shutdown drove gold to a historical high, reflecting elevated risk aversion. Attention now turns to the September FOMC minutes for signals on the Fed’s policy stance. Going forward, while global developments remain relevant, market focus is likely to shift toward domestic earnings, macroeconomic data, and the upcoming festive season," Vinod Nair, Head of Research, Geojit Investments said.

On a technical basis, Shrikant Chouhan, Head Equity Research, Kotak Securities said that the 20-day SMA (Simple Moving Average) and the 25,050–24,950 zones would act as key support levels for traders. As long as the market remains above these levels, the bullish sentiment is likely to continue.

"On the flip side, 25,200 and 25,275 would serve as key resistance levels for the bulls. For day traders, buying on intraday dips and selling on rallies would be the ideal strategy. However, a close below 25050, the uptrend could become vulnerable," he added.

According to Chouhan, the recommended strategy for the day is to buy Nifty between 25,000-24,950 levels, and traders should leep a target of 25,200 and stop loss under the 24,900 mark.

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