Will Nifty extend gains to fourth session to hold above 25,000? Key levels to watch on October 7

Nifty, Sensex gained for the past three sessions in a row.

Dalal Street may see a tepid start despite positive global cues, as global prices continue to hit fresh record highs on Tuesday, October 7. At 7.45 a.m., the GIFT Nifty index was trading at 25,172, lower by 0.03 percent or 7 points.

In the previous session, the markets opened the week on a strong note, with the Nifty 50 rising for a third straight session on October 6 to close above the 25,000 mark, driven by gains in IT and financial stocks.

"Indian equities are set for a steady yet cautious start, with some mild profit-taking likely after the recent strong rally. The broader undertone, however, remains positive, supported by robust consumption trends during the ongoing festive season—particularly in the auto and consumer durable segments," said Ponmudi R, CEO of Enrich Money.

In Asia, Japanese shares extended their rally after the election of a pro-stimulus lawmaker as the country’s next leader sent the yen sliding and drove up yields of long-tenure bonds.

The S&P 500 and Nasdaq rose on Monday, hitting record closing highs as AI-related dealmaking lifted sentiment despite the U.S. government shutdown entering its sixth day. The Dow Jones Industrial Average slipped 63 points, or 0.14 percent, to 46,694.97, while the S&P 500 gained 24 points, or 0.36 percent, to 6,740.28, and the Nasdaq Composite added 161 points, or 0.71 percent, to 22,941.67.

Key levels to watch on October 7

The index has reclaimed the 25,000 mark and is now approaching a crucial resistance zone of 25,150–25,200, where multiple previous swing highs are clustered. A decisive close above this band could further extend the rally.

"The RSI has improved to 55, advancing steadily from the neutral zone, while the MACD has begun to narrow its negative spread, indicating that bearish momentum is fading. The immediate support is placed at 24,950, followed by 24,880, which also coincides with the 38.2 percent of Fibonacci retracement," said Om Mehra, Technical Research Analyst, SAMCO Securities.

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