India's stock market SENSEX heads for 3-day decline.

BSE SENSEX hit a two-week low at 84,145, down 145 points (0.2%), marking a third consecutive session of decline.

With crucial U.S. employment statistics and ISM Manufacturing and Services PMI ahead this weekend that will influence the Fed interest rate outlook, investors have turned cautious.

Moreover, in the final data for September manufacturing, the growth in Indian factory activity was downwardly revised to its lowest level in 8 months, adding pressure to sentiment.

However, with the statement from the Federal Reserve Chairman indicating the possibility of implementing two 0.25 point rate cuts within the year if the economy progresses as expected, Wall Street rose during the night and losses were reduced. Furthermore, the upcoming quarterly pre-reports starting this week also bolstered an optimistic outlook.

When NIFTY50 reached the bearish ABCD harmonic pattern Potential Reversal Zone (PRZ) on the daily chart, it sharply reversed after three weeks of consecutive gains. Selling pressure was widespread. Currently, the market lacks leadership of leading stocks, and with the index being overbought on all time frames, bearish momentum could further expand in the future.

Overall, due to the bullish price structure, one should consider buying opportunities during the decline phase. In the past, the index has been supported around the 20-day EMA and 50-day EMA (Exponential Moving Average), and a decline towards these levels is expected to bring new buying opportunities.

Losses were observed in metals, healthcare, real estate, and pharmaceutical industries, with Asian Paints (-1.4%), Tata Steel (-1.3%), Titan Company (-1.1%), Maruti Suzuki (-0.9%), etc., experiencing declines.