Benchmark index Nifty lost its key support of 22,500 on intraday basis on October 8, extending losses from the previous session after the central bank delivered a hawkish rate hike, while rising oil prices added to inflation worries.
Benchmarks Nifty and Sensex snapped a two-session winning run on Wednesday after the Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.5%, marking the first hike in nearly four years amid mounting inflation and strong economic growth.
Brent crude jumped 2.2% to $102.5 a barrel on persistent worries about Middle East supplies driven by increased attacks on shipping in the Gulf and the Strait of Hormuz.
Where are markets headed is the key question on investors' mind? Here's what analysts said:
"On the downside, key support area to watch out is placed at 22,400-22,200 being the confluence of April 2026 low, the 200 weeks EMA and long-term rising trendline support. A breach below the April low of 22,182 will signal extension of the decline. Index, for a meaningful trend reversal, would require forming a sustained Higher High–Higher Low structure in the daily chart and reclaim the 23,000-23,100 level being the confluence of last week high and recent breakdown area," said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.