Nifty faces 4 bearish signals as October futures and options series begins

India's Nifty stock index enters the October derivatives series facing its worst September performance in 25 years, marked by heavy foreign selling and bearish futures positioning, with the benchmark testing a key long-term support level. The index fell 6.7% during the September series, its steepest decline since 2001, while foreign institutional investors sold Rs 25,662 crore of equities, the highest monthly outflow in six months. Bearish futures positions were carried into the new series, with Nifty rollovers at 74%. Nifty is now testing its 200-week moving average at 22,600, a level not seen since the Covid crash. Analysts say a decisive break below this support could trigger sharper corrections, while holding above it may enable a recovery.