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Stock market prediction for 5 October, 2026: The Indian stock market extended its corrective phase for the eighth consecutive week, ending sharply lower amid persistent selling pressure and weak global cues.
The bearish trend was visible from the beginning of the week, with the Sensex falling 1.52% on Monday. The market witnessed relatively modest declines over the next two sessions before the index dropped another 0.79% on Thursday. Overall, the Sensex plunged 1,670.84 points, while the Nifty declined more than 3%.
On Thursday, the benchmark indices, Sensex and Nifty, declined for the fourth consecutive session on Thursday as sustained FII selling, elevated bond yields and a fresh surge in crude oil prices dampened investor sentiment.
The BSE Sensex fell 570.59 points, or 0.79%, to close at 71,909.70. During the session, the 30-stock index plunged as much as 1,187.41 points to touch a fresh 52-week low of 71,292.88. Meanwhile, the NSE Nifty 50 dropped 198.50 points, or 0.88%, to settle at 22,421.95.
GIFT Nifty ended 0.59% or 133.50 points up, closed the session at 22,624.50 on 2 October.
Sensex closed at 71,909.70, down by 570.59 points (-0.79%), extending the recent weakness amid continued selling pressure. The index also breached the April 2025 swing low of 71,425.01 during the session before recovering and closing above that level.
On the Sensex outlook, Sachin Gupta, VP – Technical Research at Choice Equity Broking Private Limited, said, “On the daily chart, the index remains below the 50-Day EMA at 75,544.56 and 200-Day EMA at 77,684.60, while RSI has slipped to 24.55, indicating deeply oversold momentum. The broader support zone is placed at 71,000–71,200, while resistance is at 72,300–72,500.”
Meanwhile, on the Nifty 50 outlook, Ajit Mishra, SVP – Research, Religare Broking, said that the index corrected sharply after declining for eight successive weeks and tested the key long-term moving-average support zone comprising the 200-WSMA and 200-WEMA around 22,400-22,600, a zone revisited after nearly six years. The index also moved closer to the previous major swing low of 22,182.55 before closing at 22,421.95.
“While the broader trend remains negative, the combination of key technical supports and oversold conditions could trigger a near-term rebound. Participants may adopt a hedged approach, with 22,800 as the initial upside target, followed by 23,100-23,200. A decisive break below the April low could negate the rebound possibility and drag the index towards 21,700-22,000. Hence, appropriate stop-losses and disciplined risk management remain important,” Mishra said.
US stocks ended higher on Friday, with weaker-than-expected jobs data reducing expectations of a Federal Reserve rate hike at its policy meeting later this month.
The Nasdaq Composite advanced 319.27 points, or 1.2%, to close at 27,190.86. The index touched a record high during the session before paring gains as Treasury yields reversed direction. For the week, the index posted a gain of 0.6%, marking its third consecutive weekly advance.
The S&P 500 rose 56.27 points, or 0.7%, to 7,722.72. Despite Friday’s gains, the index slipped 0.3% over the week.
The Dow Jones Industrial Average gained 250 points, or 0.5%, to finish at 51,176.46. The index ended the week about 1.3% lower.
South Korean equities closed the September 28-October 2 week in the red despite a strong recovery towards the end of the period. The Kospi fell 77.18 points, or 1.1%, from the previous week to end at 7,003.74, as gains in major semiconductor stocks were insufficient to offset the sharp losses recorded earlier in the week.
The benchmark index started the week with a steep 2.7% decline to 6,889.74 on September 28, ending a four-session winning streak as investors booked profits in large-cap technology stocks. Samsung Electronics and SK Hynix faced significant selling pressure, while rising US Treasury yields and ongoing uncertainty over the Middle East further dampened investor sentiment.
Japanese equities ended lower on Friday, dragged down by declines across the Paper & Pulp, Transport and Communication sectors.
The Nikkei 225 fell 0.87% by the close in Tokyo. Among the top performers on the index, Resonac Holdings Corp (TYO:4004) gained 8.71%, or 1,385 points, to finish the session at 17,280.
Taiwan’s benchmark TAIEX index rose 122 points, or 0.3%, to end Friday’s session at a fresh record high of 48,476. The index extended its gains for a third straight session, supported primarily by advances in energy minerals, producer manufacturing and process industry stocks.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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