Nifty, Sensex likely to see choppy start, IT stocks in focus; key levels to track on October 10

In the previous session, Nifty 50 and Sensex gained half a percent each.

Benchmark equity indices Nifty 50 and Sensex will likely see another choppy start to last trading day of the week on Friday, October 10 amid jittery global cues. At 7.40 a.m., the GIFT Nifty index was quoting 25,243.5, down 17 points or 0.07 percent.

In trade today, IT sector stocks will remain under focus after Tata Consultancy Services came out with its September quarter earnings, announcing major investments into futuristic technologies. "While TCS’s  quarterly results were largely in line with expectations, the real catalyst for sentiment was its announcement of a new entity dedicated to building world-class AI infrastructure," noted Ponmudi R, CEO of Enrich Money.

Overnight, Wall Street ended in negative territory on Thursday as investors, left with no economic data or any sentiment-swaying catalysts, took the opportunity to consolidate ahead of third-quarter earnings season. The Dow Jones Industrial Average fell 0.52 percent, the S&P 500 lost 0.28 percent and the Nasdaq Composite lost 0.08 percent.

Asian equities retreated at the open after a rally in US stocks stalled amid concern valuations may have become stretched following their relentless surge.

Key levels to watch in trade on October 10

The index has now carved out a broad consolidation zone between 24,900 and 25,200. As long as it remains confined within this band, a phase of choppy and range-bound trade is expected to prevail; a breakout on either side could set the tone for the next decisive trend.

From a technical perspective, Nifty continues to hover around the psychological 25,000 mark, where multiple support layers align closely.

"This area between 24,900 and 24,950 has evolved into a critical “buy-on-dips” pocket. On the upside, a clear breakout above the 25,200–25,250 resistance band is essential to trigger a strong short-covering rally, while failure to do so could keep sellers dominant in the near term," said Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.

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