Indian equity markets ended the week of October 5–9, 2026, on a positive note, with the Nifty50 rising 0.44%, snapping an eight-week losing streak - the longest weekly losing streak in the last 25 years.
Friday's rebound in the market was led by strong buying in IT stocks following TCS’s encouraging Q2 results, alongside gains in FMCG, banking, auto and broader mid-cap stocks. However, persistent FII outflows, elevated crude oil prices above $100 per barrel and concerns over tighter monetary conditions continue to weigh on sentiment.
According to Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, Friday’s rebound towards 22,500 offers early signs of a potential bottoming process. The triple bullish divergence on the RSI across the Nifty 50, Nifty 500, Nifty Midcap 100 and Nifty Midcap 150 remains significant.
"This suggests that the deterioration in price action is not being confirmed by downside momentum, increasing the possibility of a meaningful reversal. The 22,200–21,900 zone remains a crucial support area, while 22,800 is the immediate resistance. A sustained breakout above 22,800 could strengthen the recovery and open the door towards 23,200," said Patel.
"Volatility may persist, deeply oversold conditions, and bullish divergence provide grounds for cautious optimism. However, sustained buying is essential to confirm a broader trend reversal," Patel added.