Nifty Outlook for October 8: Shooting Star Pattern Signals Pause; Support at 25,000, Resistance at 25,250

The Indian equity benchmarks Sensex and Nifty 50 extended their winning streak for the fourth consecutive session on October 7, 2025.

• Nifty 50 ended up by 30.65 points at 25,108.30,
• Sensex gained 136.63 points to close at 81,926.75.
  Buying in blue-chip banking stocks and continued domestic institutional investor (DII) inflows supported the rally.

Sectoral Highlights

• Top Gainers: Nifty Realty (+1.09%), Oil & Gas (+0.49%), Pharma (+0.44%), Auto (+0.28%)
• Bank Nifty: Added 134.5 points to finish at 56,239.35
• Volatility Index (India VIX): Fell 1.39% to 10.05, reflecting a stable sentiment

Expert Commentary

Vinod Nair (Geojit Financial Services) said focus has shifted to corporate earnings and management commentary. Financial stocks are benefiting from RBI’s latest reforms, while FMCG remains subdued due to weak pre-results guidance.

Ajit Mishra (Religare Broking) noted that the market’s rebound is supported by global stability and strong domestic updates, though FII outflows remain a risk.

“The trend remains positive as long as Nifty trades above 24,900,” he said.

Nandish Shah (HDFC Securities) pointed out that Nifty stays bullish above its 20-day EMA, with immediate resistance at 25,220–25,330 and support at 24,930.

Technical Pattern – Shooting Star Candle

According to Nilesh Jain (Centrum Broking) and Om Mehra (SAMCO Securities), Nifty formed a shooting star candlestick on the daily chart — a signal of potential short-term exhaustion after a sustained uptrend.

• Support: 25,000 → 24,880
• Resistance: 25,200 → 25,250
  A decisive close above 25,250 could extend the rally toward 25,450–25,500.

Indicators & Derivatives Data

• RSI: Rebounded to 55, indicating renewed strength for the bulls.
• Open Interest (OI): Significant build-up seen at 25,000 PUT and 25,200 CALL, suggesting a range-bound movement between 24,950–25,300 in the near term.

Nagaraj Shetti (HDFC Securities) said that a long upper shadow on the daily candle shows resistance from higher levels.

“A close below 25,000–24,900 could invite profit-booking, while a breakout above 25,200 may take Nifty to 25,450,” he added.

Conclusion

The short-term outlook for Nifty remains cautiously positive with key support at 25,000. A break below this could trigger mild correction, while a strong close above 25,250 may push the index toward 25,500 levels.