After a week of profit booking, Indian equities enter the new week with the short-term trend tilted towards caution. While the Nifty 50 and Bank Nifty continue to hold above key weekly moving averages, indicating that the broader medium-term structure remains positive, weakening daily momentum could keep gains in check.
The Nifty declined 0.80 percent last week, while the Sensex and Bank Nifty also closed lower. Investors are likely to track the 24,500 level on the Nifty closely. A sustained move above this resistance could revive buying interest, while a break below 24,000 may trigger further selling.
Indian equity markets ended the week in the red as investors booked profits across several sectors.
Sensex fell 0.62 percent to 78,009.25.
Nifty 50 declined 0.80 percent to 24,366.00.
Bank Nifty slipped 0.40 percent to 57,491.10.
Metal, FMCG, IT and auto stocks were among the major laggards.
Media and realty stocks bucked the trend and ended higher.
The Nifty opened at 24,581.20 and touched a weekly high of 24,620.90 before profit booking pulled it lower. It subsequently tested 24,265.90 and recovered moderately to close at 24,366.
The Nifty continues to trade above key short-term moving averages on the weekly chart, keeping the medium-term outlook constructive. Momentum oscillators also remain in bullish territory.
However, the daily chart presents a different picture, with the index below its short-term moving averages and momentum indicators pointing to continued downward pressure. The formation of a bearish weekly candle and a close below the previous week's level further indicate short-term weakness.
Key levels to watch:
Resistance: 24,500
Immediate support: 24,000
A sustained move above 24,500 could revive buying momentum.
A decisive break below 24,000 could open the way for further weakness.
Unless the index reclaims 24,500, the short-term bias is likely to remain cautious.
Bank Nifty closed at 57,491.10, down 0.40 percent for the week, as investors booked profits in banking stocks.
The weekly chart continues to indicate a positive medium-term structure, with the index holding above its major moving averages. However, the daily chart remains weak, with short-term moving averages and momentum indicators pointing towards selling pressure.
The index formed a small bearish weekly candle and closed below the previous week's level.
Key levels:
Support: 57,000
Resistance: 58,700
Expected trading range: 57,000–58,700
A decisive breakout above 58,700 or a breakdown below 57,000 is likely to determine the next directional move. Until then, consolidation within the range is likely.
The Sensex ended the week at 78,009.25, down 0.62 percent. While weekly technical indicators continue to support a constructive medium-term trend, the daily chart has developed a negative bias.
The key levels for the coming week are:
Resistance: 79,350
Support: 75,500
A sustained move above 79,350 could improve the short-term outlook.
A break below 75,500 could intensify selling pressure.
The overall market setup remains cautiously neutral to mildly negative in the short term, even as the medium-term structure remains positive.
Investors should watch:
Nifty 24,500: A sustained breakout could bring fresh buying interest.
Nifty 24,000: A break below this level could deepen the correction.
Bank Nifty 57,000–58,700: A breakout from this range could provide the next directional signal.
Sensex 79,350: A move above this level could restore positive momentum.
Sensex 75,500: A breakdown could increase downside pressure.
For now, the market appears more likely to remain range-bound, with stock- and sector-specific movements dominating until the key technical levels are breached.
Note: Research support for this article was provided by the Research Desk, MyEquityLab.com, a SEBI-registered Research Analyst (Registration No. INH000023843).
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Readers are advised to consult a qualified financial adviser and conduct their own due diligence before making any investment decisions.