Indian equities rebound, ending eight‑week Nifty slump as tech leads rally

Indian equities surged on Friday, October 9, snapping an eight‑week losing streak for the Nifty 50 and Sensex. The Nifty rose 1.30% to close above its recent trough, while the Sensex advanced 1.23% and Bank Nifty gained 1.36%. The rally was sparked by strong earnings from Tata Consultancy Services and spread to FMCG, auto and financial stocks. Macroeconomic pressure lingered as Brent crude traded above $100 a barrel and WTI stayed over $90. Remarks by the U.S. president on talks with Iran gave brief relief, but tension in the Strait of Hormuz kept supply‑disruption risk high, leaving India vulnerable to higher inflation, a larger import bill and rupee pressure. Choice Broking’s executive director Sumeet Bagadia said the Nifty 50 chart shows improving short‑term sentiment despite a weak broader structure. He noted a put‑call ratio of 0.98, indicating a balanced derivatives set‑up, and an India VIX of 14.375, pointing to lower volatility. Immediate Nifty support sits at 22,250–22,400, with resistance at 22,650–22,700; the RSI lifted to 36.50 versus an average of 31.48. For Bank Nifty, support is 54,800–55,000 and resistance 55,500–55,800, with the RSI climbing to 45.20 against an average of 38.02. Bagadia flagged five breakout candidates: RBL Bank, showing higher highs, lower lows and a bullish engulfing candle on a rising trend line with strong volume; Birlasoft, which broke a down‑sloping trend line, closed above its 21‑day EMA and held an RSI of 53.31; Go Digit, out of an inverted head‑and‑shoulders pattern with solid volume; LIC, which topped the highs of the prior three sessions on a high‑volume breakout candle; and Nykaa, breaking a downward channel and trading above its 21‑day and 50‑day EMAs.

Context

Technical breakouts often precede short‑term price gains, but sustaining them requires broader market confidence and stable macro conditions. High oil prices and geopolitical risk remain the key factors that could limit the rally’s depth.