The Nifty 50 has halted its longest weekly losing streak in 25 years, ending the week at 22,520.45 with a 0.44% gain. While technical charts suggest a potential rebound, the market remains cautious due to persistent selling by foreign investors and the impact of the recent RBI rate hike. Investors are now watching to see if the index can hold above key support levels.
The Nifty 50 has officially snapped an eight-week losing streak, marking the first weekly gain for the benchmark index in nearly two months. For the week ended October 9, 2026, the index closed at 22,520.45, reflecting a 0.44% recovery. This pause in selling comes after the market hit an intraday low of 22,179.90 earlier in the week, which established a new 52-week low.
Technical analysts have noted specific patterns, such as the Bullish Harami and a Doji formation on the weekly charts, which often suggest that selling pressure may be decreasing. These indicators point to a potential stabilization near the support zone of 22,180–22,200. If the market fails to hold this floor, it could signal that the correction is not yet over. On the upside, the index faces immediate resistance between 22,600 and 22,800, which it must cross to improve its short-term outlook.
Banking Sector and Market Drivers
The recovery was supported by buying interest in key sectors like IT, banking, and fast-moving consumer goods (FMCG). The Bank Nifty index showed relative strength, outperforming the broader market with a 1.48% gain for the week. This performance is significant as banking stocks often lead market sentiment. Additionally, a slight cooling in crude oil prices provided some relief to investors during the week.
Despite the positive close, the overall market environment remains challenging. Foreign Institutional Investors (FIIs) have continued to sell, creating a drag on stock prices. Furthermore, the Reserve Bank of India (RBI) recently increased the repo rate by 25 basis points to 5.50%. This move, aimed at managing inflation, generally raises borrowing costs for companies, which can impact profitability and investor sentiment.
Macro Factors and What to Watch
Beyond domestic factors, the market is navigating significant global pressure. The yield on 10-year US Treasury bonds remains elevated at approximately 5.27%. When these yields are high, it often encourages global investors to pull money out of emerging markets like India in favor of safer assets.
Because the Nifty 50 is still trading below its long-term moving averages, analysts suggest that the current rise might be a temporary pause rather than a complete trend reversal. For the coming week, investors will be monitoring whether the recovery can be sustained by higher trading volumes. A decisive breakout above the resistance band is necessary to confirm that the selling pressure has truly eased, while a drop back below the 22,180 level would likely invite fresh concerns.