Indian equity markets are expected to maintain a cautiously positive bias this week, supported by strong domestic institutional buying, improving technical indicators and resilient economic fundamentals.
Q1 FY27 earnings season begins, with major IT and financial companies announcing April-June quarter results.
Management commentary on earnings growth, demand outlook, margins and business prospects will be closely watched.
Global market trends, crude oil prices, foreign institutional investor (FII) activity and geopolitical developments will continue to influence sentiment.
From a technical perspective, the Nifty remains above the crucial 24,000 level and continues to trade above its key short-term moving averages, indicating that the broader trend remains positive.
Immediate resistance: 24,575
Breakout target: 25,200
Key support zone: 23,770-24,000
Any short-term correction towards the support zone could present a buying opportunity. Overall, the market is expected to remain stock-specific with a positive bias, with the Q1 earnings season likely to be the primary catalyst.
Indian equity markets ended the week on a positive note, supported by selective buying across key sectors despite intermittent volatility.
BSE Sensex: Up 0.86 percent to 77,763.91
Nifty 50: Up 0.90 percent to 24,270.80
Bank Nifty: Down 0.40 percent to 57,938.50
Top performers
Realty
Pharma
FMCG
Metal
Underperformers
Banking
Financial services
The Nifty opened the week at 24,061.80 and slipped to a weekly low of 23,829.20 before witnessing strong buying at lower levels. It recovered sharply to touch a weekly high of 24,378.20 on Friday before closing at 24,270.80, reflecting resilient market sentiment.
The Nifty continues to trade above its key short-term moving averages on both the daily and weekly charts, indicating that the broader trend remains positive. Momentum indicators also support the bullish outlook, while the formation of a bullish weekly candlestick and a close above the previous week's level reinforce the possibility of further gains.
Support: 23,770
Resistance: 24,575
Upside target after breakout: 25,200
As long as the index remains above 23,770, the prevailing positive trend is expected to stay intact. Until a breakout above 24,575, the market may witness intermittent consolidation.
Bank Nifty ended the week at 57,938.50, down 0.40 percent, reflecting profit booking in banking stocks.
Despite the decline, the index continues to trade above its key short-term moving averages on both the daily and weekly charts. Momentum indicators suggest a neutral-to-positive bias, indicating the possibility of a consolidation phase.
Resistance: 58,700
Support: 57,000
A sustained close above 58,700 would signal a resumption of the bullish trend, while failure to cross this level could keep the index range-bound. The 57,000 level is expected to provide strong support.
The Sensex closed the week at 77,763.91, gaining 0.86 percent and maintaining its positive bias. The index also finished above the previous week's close, signalling improving market strength.
Technical indicators on both the daily and weekly charts continue to point to improving momentum.
Support: 76,000
Resistance: 78,500
Next upside target: 79,750
As long as the Sensex remains above 76,000, the positive trend is expected to continue. However, failure to sustain above 78,500 could lead to a short-term consolidation before the next directional move.
Note: Research support for this article was provided by 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 should consult a qualified financial adviser and conduct their own due diligence before making investment decisions.