8 October 2026 (Navroze Bureau) Indian equity markets are likely to remain cautious on Thursday, October 8, as investors assess the impact of the Reserve Bank of India’s unexpected shift towards tighter monetary policy, continued foreign investor selling, elevated crude oil prices and mixed global market signals. The Nifty 50 and Sensex ended the previous session lower, reflecting growing concerns over inflation, interest rates and external risks.
Here are the 15 key things investors should know before the opening bell:
1. Nifty outlook: The Nifty 50 closed at around 22,603 after declining during the previous session. The index needs to reclaim the 22,800 level to regain upward momentum. A sustained move above this zone could open the way towards 23,000.
2. Key Nifty resistance: Technical indicators suggest resistance around the 22,700–22,800 zone. A decisive breakout above this range could improve market sentiment and encourage fresh buying.
3. Nifty support: On the downside, the 22,500–22,400 zone remains an important support area. If the index breaks below this range, selling pressure could increase and the next major support could emerge near 22,200.
4. Bank Nifty levels: Bank Nifty remains another important index to watch. Traders will closely monitor the 55,000 level. Sustaining above this mark could support recovery, while weakness below it may lead to further selling.
5. RBI policy impact: The Reserve Bank of India raised the repo rate by 25 basis points to 5.50% and changed its policy stance from neutral to calibrated tightening. The move has increased concerns about borrowing costs and liquidity conditions.
6. Crude oil prices: Crude oil remains a major concern for Indian markets. Brent crude has moved above the $100-per-barrel mark amid geopolitical tensions. Higher oil prices could increase India’s import bill, inflationary pressures and pressure on corporate margins.
7. Foreign investor selling: Foreign institutional investors continued to remain net sellers in Indian equities. Persistent FII outflows have emerged as one of the biggest headwinds for the domestic market and could limit any sharp recovery.
8. Domestic institutional buying: Domestic institutional investors have continued to provide support by buying equities. Strong domestic flows could help absorb some of the selling pressure from foreign investors and prevent a deeper market correction.
9. India VIX: The volatility index has moved higher, signalling increased nervousness among market participants. Traders will monitor the VIX closely because a sustained rise could result in larger intraday swings.
10. Options setup: In the options market, the 23,000 strike remains an important Call open-interest zone and could act as resistance. On the Put side, the 22,600 area is being closely watched as an important support level.
11. Put-Call ratio: The Nifty Put-Call ratio has weakened, indicating some moderation in bullish sentiment. The options setup suggests traders are becoming more cautious ahead of important economic and corporate developments.
12. Stocks in focus: TCS will remain in focus as the company kicks off the September-quarter earnings season. Investors will track its revenue growth, margins, deal pipeline and management commentary for signals about the broader technology sector.
13. Corporate developments: Several companies are also likely to remain active following quarterly business updates and other corporate announcements. Stocks such as Tata Power, Jubilant FoodWorks, Senco Gold, Fino Payments Bank and Godrej Properties could attract trading interest.
14. Futures and options activity: Derivatives data indicates a cautious market structure, with short build-up and long unwinding visible across several stocks. Traders are likely to monitor changes in open interest closely for clues about the next directional move.
15. Stocks under F&O ban: Ambuja Cements, Bandhan Bank, LIC Housing Finance and SAIL are among the stocks under the futures and options ban for the session. Traders should remain alert to changes in open interest and market positioning in these counters.
Global markets will also play an important role in determining the opening direction of Indian equities. Asian markets have remained under pressure, while higher US Treasury yields and elevated crude oil prices have added to concerns about global inflation and interest rates.
The Indian rupee is also being closely watched after remaining under pressure against the US dollar. A weaker rupee can increase the cost of imported commodities, particularly crude oil, potentially adding to inflationary pressures.
For traders, the Nifty’s immediate range remains crucial. Holding above 22,500 could help the index consolidate and attempt a recovery towards 22,800 and 23,000. However, a break below the 22,400 zone could increase the possibility of a move towards 22,200.
Banking stocks, IT shares, energy companies and oil-sensitive sectors are likely to remain in focus. Investors will also track movements in crude oil, the rupee, bond yields and foreign institutional flows for additional direction.
With the RBI adopting a tighter policy stance, crude oil prices remaining elevated and foreign investors continuing to sell, the market could remain volatile. At the same time, strong domestic institutional buying and positive corporate earnings could provide some support.
Overall, traders are likely to adopt a cautious approach at the opening bell. The 22,400–22,500 zone will remain important on the downside, while 22,800 will be the key hurdle on the upside. A breakout from either side could determine the next major market direction.