Summary:
Nifty prediction for October 7: Nifty 50 closed at 22,776.10 after gaining 0.98% on October 6. The index is approaching 22,813 and 23,076.90 resistance, while 22,745 and 22,555 remain important supports as the RBI policy decision approaches.
The Nifty 50 continued its rebound for a second straight session on October 6, ending at 22,776.10, higher by 220.35 points or 0.98%. The index opened at 22,603.25 and traded within a range of 22,561.60 to 22,776.10 before finishing at the day’s high.
The recovery was supported by buying across several sectors, softer crude oil prices and a favourable global backdrop ahead of the RBI monetary policy decision.
Broader Participation Supports the Rebound
Market breadth remained constructive, with 31 Nifty 50 stocks ending in positive territory and 19 closing lower.
Defence, pharma and oil and gas were among the stronger pockets during the session. The fact that a majority of index constituents participated in the rise added strength to the recovery and showed that the move was not restricted to a handful of heavyweight stocks.
Nifty Reclaims 22,750, Immediate Hurdle Near 23,077
On the daily chart, Nifty closed at 22,776.10 after moving above the previous session’s high and extending its bounce from the recent support around 22,221.85.
The index is now approaching its short-term EMA near 22,813, which remains an important near-term hurdle. A decisive move above this level could strengthen the recovery and shift focus towards 23,076.90, a key horizontal resistance zone.
The hourly structure has improved considerably, with Nifty moving above its important short-term exponential moving averages. The index is also holding above the 22,745 area, keeping the short-term bias positive.
On the 15-minute chart, the index remains above its EMA cluster, indicating that buyers continue to have the upper hand in the immediate timeframe.
RSI Signals Improving Momentum
Momentum indicators have also recovered from recent weak levels.
The daily RSI has risen to 36.31, showing that the intense selling pressure seen earlier has started to ease. However, the indicator is still below the neutral 50 level, suggesting that the broader daily momentum is yet to turn fully positive.
The hourly RSI has strengthened to 60.48, reflecting improving momentum in the short term. Meanwhile, the 15-minute RSI has climbed to 72.58.
While the higher intraday RSI confirms strong buying momentum, it also indicates that the index has entered an overbought zone on the shorter timeframe. This raises the possibility of some consolidation or intermittent profit booking after the recent rise.
Nifty Levels to Watch on October 7
For Wednesday’s session, the 22,745 to 22,813 zone will be the first area to monitor. Holding above this band would help the index retain its short-term positive structure.
Below this zone, 22,555 remains the next important support.
On the upside, 23,076.90 is the key resistance. A sustained breakout above this level could strengthen the bullish setup and create room for an extension towards the 23,300 to 23,500 zone.
If Nifty fails to hold above 22,745, some profit booking could emerge after the two-session rebound. However, as long as the index remains above 22,555, the immediate recovery structure would remain intact.
