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NIFTY WEEKLY OUTLOOK – 09th October 2026

The Nifty index started the week at 22,532.40, opening around 110 points higher than the previous week's close. The index initially moved upward and recorded a weekly high of 22,776.10, but the recovery failed to sustain, with the market subsequently witnessing sideways movement followed by renewed selling pressure. Nifty breached the 2 April 2026 low of 22,182.55 during the week before recovering on the final trading day to close at 22,520.45, up 98.50 points (+0.44%) for the week. This marked an end to the index's eight consecutive weekly declines, although the broader technical structure remains under pressure.

The weekly chart has formed a Doji candlestick, reflecting indecision between buyers and sellers following the prolonged correction. Although Nifty briefly slipped below the previous major low of 22,182.55, the subsequent recovery indicates buying interest at lower levels. However, the index continues to trade below the 50-Week EMA, while the 200-Week EMA near 22,382 remains an important technical reference, with the weekly close marginally above it.

From a momentum perspective, the weekly RSI is showing signs of weakness, with the index still trading below the neutral 50 mark. The prolonged correction has kept momentum subdued, and a sustained improvement in RSI would be needed to confirm a more durable recovery rather than a temporary rebound.

Sector-wise, market participation remained mixed, with Nifty FMCG gaining 2.45% and Nifty PSU Bank advancing 2.38%. Both sectors formed bullish Harami patterns on their weekly charts, while FMCG also showed a bullish RSI divergence. Nifty IT gained 0.95%, supported by buying interest at lower levels, as reflected in its long lower wick. On the downside, Nifty Realty declined 3.72%, followed by Nifty Metal, down 3.69%, while Auto fell around 2.07%. Energy and Pharma also witnessed profit booking, declining by more than 1%, highlighting the lack of broad-based buying participation.

Technically, Nifty is attempting to stabilize after an extended corrective phase, but the formation of a Doji candle signals indecision rather than a confirmed reversal. The index remains below the 50-Week EMA near 24,082, while the 200-Week EMA around 22,382 continues to be a crucial long-term support reference. Sustaining above this moving average could help the index consolidate, whereas a decisive breakdown would increase the risk of further weakness.
On the upside, immediate resistance is placed at 22,800 and 23,100. A sustained move above this zone could strengthen the recovery and improve near-term sentiment. On the downside, support is seen in the 22,000–22,180 zone, which remains crucial following the recent breach of the April low. A decisive breakdown below this support region could renew selling pressure. Considering the current setup, traders should remain selective and monitor whether the recent recovery develops into sustained buying momentum.

Support Levels: - 22,000 - 22,180
Resistance Levels: - 22,800 - 23,100
Overall Bias: - Sideways

BANKNIFTY WEEKLY OUTLOOK – 09 TH October 2026

Bank Nifty opened the week higher by around 389.90 points at 54,840.65 and initially witnessed sideways consolidation, registering the weekly low of 54,370.60 on the first trading session. Buying interest emerged from lower levels, although the index experienced intermittent fluctuations during the week. A strong recovery on the final trading session pushed Bank Nifty to a weekly high of 55,419.30, breaking above the previous week's high of 55,390.10. The index eventually closed at 55,256.65, gaining 805.90 points (+1.48%).

The weekly price action indicates an improvement in sentiment, with Bank Nifty closing in positive territory after four consecutive weeks of decline. The index recovered from its weekly low and managed to close above the immediate support zone, although it continues to trade below the 50-week EMA, currently placed around 56,364, which remains an important resistance level. The Weekly RSI stands at 43.23, recovering from lower levels but remaining below the neutral 50 mark, indicating that momentum is improving but a stronger confirmation of trend reversal is still awaited.

Sectorally, the CNX PSU Bank Index gained 2.38%, while the Nifty Private Bank Index advanced 1.48%, reflecting broad-based recovery across banking stocks. Punjab National Bank (PNB) was the top performer, gaining 6.76%, followed by Kotak Mahindra Bank, up 5.41%. On the downside, IndusInd Bank declined 2.84%, marking its fifth consecutive weekly decline, while HDFC Bank fell 1.93%.

Going ahead, Bank Nifty is likely to remain in a sideways phase, with the recent recovery providing some relief after the prolonged decline. Sustaining above the 54,000–54,300 support zone would be important to maintain the recovery, while a decisive move above 56,000–56,500 could strengthen bullish momentum and improve the broader technical structure.

Support: 54,000–54,300
Resistance: 56,000–56,500
Overall Bias: Sideways

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