Nifty sees worst September series in 25 years. What does October hold?

Nifty recorded its worst September series in 25 years, losing more than 1,400 points (a 6.8% correction) amid foreign selling, elevated Brent crude near 108 dollars per barrel, a weak rupee trading around 96.2 to the dollar, and hardening bond yields with India 10-year at 7.17% and US 10-year above 5%. The index breached its 200-week moving average at 22,600 for the first time since the Covid crash, with analysts flagging 22,800-22,900 as immediate resistance and 22,400-22,500 as key support. Experts advise caution, light positions, and selective longs, though valuations are seen as more reasonable and domestic indicators like August IIP at 8% year-on-year provide some cushion.