Markets Extend Gains Amid Volatility: Nifty Closes Above 25,100

Mumbai, Oct 07, 2025: The Indian benchmark indices gave up part of their intraday momentum but sustained their upward trajectory for the fourth consecutive session on October 7, amid heightened volatility due to the weekly Nifty options expiry. The Nifty eventually concluded marginally above the 25,100 level, after scaling an intraday high of 25,220.9. At the close, the Sensex advanced 136.63 points, or 0.17%, to 81,926.75, while the Nifty rose 30.65 points, or 0.12%, to end at 25,108.30. Sector-wise, Realty, Energy, Oil & Gas, Pharma, Telecom, and Consumer Durables outperformed, gaining between 0.3% and 2%, whereas selective profit booking was observed in Defense and FMCG names. On the broader front, the Midcap index added 0.47%, and the Small-capindex ended marginally higher by 0.31%.

Nifty Outlook

On the daily chart index has formed a small bull candle with a long upper shadow highlighting profit booking at higher levels after 600 points up move in the last 4 sessions. The index maintained higher high and higher low and continues to trade above the 20- & 50-days EMA highlighting overall positive bias. Going ahead a follow through strength above Tuesday high 25220 will signal extension of the current up move towards 25,400-25,500 levels in the coming week being the trendline resistance joining the major highs of June & September 2025. Failure to move above 25220 on a closing basis will lead to some consolidation in the range of 24,700-25,200. We believe bias remain positive and dips should be used as a buying opportunity.  

Bank Nifty Outlook

Bank Nifty formed a bull candle with shadows in either direction which maintained higher high and higher low signaling extension of the up move. Index on Tuesday session on expected lines maintained positive bias and tested the immediate resistance area of 56500. Immediate bias remains positive above Monday’s bullish gap area of (55616- 55727). Going ahead a follow through strength above 56,500 levels will open further upside towards 57,300 levels in the coming weeks. Failure to move above 56,500 on a closing basis will lead to some consolidation in the range of 56,500-55,500. We believe bias remain positive and dips should be used as a buying opportunity.

Conclusion:

Indian equities extended their winning streak for the fourth consecutive session, with the benchmark Nifty opening flat and steadily advancing to close 0.43% higher (Time 2:22 PM). Buying interest was notably strong in Oil & Gas, Financial Services, Banking, Construction, and Consumer Durables, which led the sectoral gains. Conversely, weakness persisted in Media, Consumer Goods, and select stocks, marking them as the day's laggards.

On the global front, uncertainty loomed after the U.S. Senate on Monday once again rejected both Democratic and Republican proposals to fund the government, prolonging the shutdown into its sixth day and heightening investor caution.

From a technical perspective, the Nifty decisively breached the key resistance at 25,200, potentially paving the way toward the 25,500 mark, while immediate support rests at 25,000. Similarly, Bank Nifty faces resistance at 56,500, and a breakout above this level could propel it toward 57,000, with the nearest support positioned at 56,200.

In the derivatives segment, the overall advance-decline ratio reflected a bullish bias. Notable open interest build-up was observed in IGL, UNOMINDA, CAMS, POWERINDIA, and KAYNES, indicating active long positions in these counters.

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