Indian equity markets are likely to remain under pressure on Oct. 1 after the Nifty 50 extended its losing streak to three sessions, falling 95 points to close at 22,620 on Sept. 30. The index ended near the day's low and slipped to its lowest level since March 30, 2026. The latest decline has also taken the Nifty more than 8.5% below its recent peak of 24,774, highlighting the intensity of the ongoing correction.
However, technical indicators have now moved into deeply oversold territory, raising the possibility of a short-term technical bounce.
“Short-term indicators are deeply oversold, with the index hovering near the critical 22,600 support zone that aligns with the 200-week moving average. While oversold conditions increase the likelihood of a technical bounce, it remains prudent to wait for the index to sustain above higher levels rather than fight the prevailing downtrend,” said Nandish Shah, Deputy Vice President, HDFC Securities.
For the immediate session, the 22,600-22,550 zone will be crucial for the Nifty. Shrikant Chouhan, Head of Equity Research at Kotak Securities, said this range remains a strong support zone for day traders. “If the market manages to hold above this zone, it could retest 22,750–22,800. On the other hand, a break below 22,550 could accelerate selling pressure, potentially dragging the market down to 22,400–22,350,” Chouhan said.
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He added that the intraday market outlook remains non-directional and level-based trading would therefore be the ideal strategy for day traders.
Nifty Bank Outlook
The Bank Nifty showed relative resilience during the previous session, ending higher despite opening lower. The index formed a series of higher highs and higher lows during the first half of the session before facing resistance around the 55,000-55,100 zone. The index eventually settled near 54,600, with the 55,000-55,100 region emerging as the immediate resistance zone.
“On the upside, immediate resistance is placed at 55,000–55,100, followed by the next hurdle at 55,300–55,500,” said Ponmudi R, CEO of Enrich Money. On the downside, support is placed at 54,500-54,400. A decisive break below this zone could drag the Bank Nifty towards the next support levels at 54,000-53,800.
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