On 8 October 2025, Indian equity markets closed lower, halting a four-day winning streak amid heightened volatility and mixed global cues. The trading session began on a positive note, with the Nifty briefly approaching the 25,200 mark, supported by early buying interest. However, mid-session profit booking reversed gains, leading to a subdued close. The Sensex declined by 153.09 points (-0.19%) to settle at 81,773.66, while the Nifty slipped 62.15 points (-0.25%) to end at 25,046.15.
Broader market indices mirrored the weakness, with the BSE Midcap index falling 0.7% and the Smallcap index down 0.4%. Sectoral performance was broadly negative, barring IT and consumer durables, which rose by 1.5% and 0.7% respectively. All other sectors, including realty, telecom, pharma, oil & gas, media, PSU banks, and auto, registered declines ranging from 0.3% to 2%, reflecting cautious sentiment and selective profit booking across the board.
The Nifty has been weaker in comparison, and bearish pressure has emerged on every rally, indicating a downward bias as the trends are unable to move higher. While sector rotation is underway, we are approaching a point where the indices have become increasingly divergent. As the result season unfolds in the next few days, we will again be subjected to some intense volatility.
The rise in the Nifty Bank continues to hold, while bearish pressure is emerging at higher levels. Currently, due to a lack of triggers, we are witnessing a range of actions that could keep the trends from recovering swiftly.
A look at the Nifty Bank indicates that until 55,500 is reached, the bulls will attempt to rebound. The Nifty Bank is a sector that should be tracked. While an attempt is made to move higher, we can examine stock-specific action where divergent views are being displayed across all component stocks. PSU Banks are having it rough, and the erratic vibes being exhibited shall make it difficult for the Nifty Bank to recover. This, in turn, will spill over to other sectors, including auto, real estate, and finance. Despite the markets on Monday showing some signs of a recovery, the inability of the Nifty Bank to clear the 57,500 mark seems limited ahead of the event. Till then, this index holds the key to some trends to emerge.
Meanwhile, the current scenario has not been very conducive, and the lack of clarity continues to keep the trends under pressure. Now, we need to see the Nifty move above 25,100, which is the immediate resistance for some bullish revival as well as the max pain point that will continue to halt any progress.
With the Open Interest data clearly indicating hurdles at higher levels, one should keep tracking a 30-minute range breakout on Thursday above this level for creating some long.
As indices are not showing a significant decline, one should consider participating in some stock-specific actions.
Why it’s recommended: Wheels India Ltd, an Indian automotive parts manufacturer founded in 1960, is part of the TVS Group. Based in Chennai, it is a leading global producer of steel, aluminium, and wire wheels for various vehicles and industrial equipment. As hesitant upward traction is beginning to give way, the possibility of prices reaching new highs is looking more positive. With strong momentum in place, further upward traction is possible.
Risk factors: Supply chain disruptions, fluctuating raw material prices, customer absorption of costs, economic downturns, and changes in government policies.
Why it’s recommended: Star Cement is India’s largest cement manufacturer in North-East India, with a significant market presence in West Bengal and Bihar, offering products such as Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC). After a strong decline, the prices are seen forming a long-body candle at the cloud support region, igniting some bullish enthusiasm. A positive outlook has emerged as prices demonstrate a strong upward trend. Can look to go long.
Risk factors: High geographical concentration in the North-East and vulnerability to volatile input prices.
Why it’s recommended: Fusion Finance Ltd is an Indian NBFC-MFI (non-banking financial company-micro finance institution) that provides microloans to women entrepreneurs in rural and semi-urban areas using the joint liability group (JLG) model. Despite some profit booking seen the prices have managed to hold on for a while at the TS line. The formation of a green candle is seen emerging from the TS zone, indicating a strong push to the upside. Over the last few days, we have been witnessing the formation of a long-body candle, and the RSI has been holding at 60. We can look at initiating a long.
Risk factors: Prolonged deterioration in asset quality, exposure to borrowers with weak credit profiles, financial covenant breaches with lenders, and inherent vulnerabilities.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
Investments in securities are subject to market risks. Read all the related documents carefully before investing. Registration granted by Sebi and certification from NISM in no way guarantees performance of the intermediary or provide any assurance of returns to investors.
