Sensex and Nifty Snap Eight-Week Losing Streak as Markets Bounce Back

The Indian stock market ended the week of October 5 to 9, 2026, with gains, as the Sensex rose 0.78 percent and the Nifty went up 0.44 percent. This positive close breaks an eight-week losing streak, which was the longest in 25 years.

Market Recovery

On Friday, the Sensex jumped 879 points, or 1.23 percent, to close at 72,472.33. The Nifty rose 289 points, or 1.30 percent, to end at 22,520.45. This strong recovery followed a brutal sell-off on Thursday when the Nifty dropped over 400 points and broke below the 22,200 support level. Strong buying in IT shares, driven by good second-quarter results from TCS, helped push the market up along with gains in FMCG, banking, auto, and mid-cap stocks. However, ongoing foreign institutional investor outflows, high crude oil prices between $100 and $103 per barrel, and tight monetary conditions continue to worry investors.

Expert Outlook

Mehul Kothari of Anand Rathi stated that the 22,200 to 21,800 zone remains an important bottoming area for the Nifty 50 index. He noted that a triple bullish divergence on the Relative Strength Index across major indices shows that downside momentum is slowing down. For the Bank Nifty, the index surged over 700 points on Friday to close above 55,200. Kothari shared stock picks under 200 rupees, suggesting to buy Vodafone Idea near 13 rupees with a target of 15 rupees and a stop loss of 12 rupees. He also recommended buying Motherson Sumi above 34 rupees with a target of 38 rupees and a stop loss of 32 rupees, and IDFC First Bank above 80 rupees with a target of 85 rupees and a stop loss of 71.50 rupees.

Context

Stock markets often experience sharp rebounds after long losing streaks as oversold conditions attract bargain buyers. Technical indicators like the RSI help analysts spot when downward selling pressure is starting to weaken even if prices are still low.