Indian equity markets are expected to remain cautiously optimistic this week supported by sustained domestic institutional buying and positive technical indicators. Investor sentiment is likely to be influenced by global market trends, crude oil prices and institutional fund flows.
Nifty support: 23,770
Nifty resistance: 24,575
A breakout above 24,575 could trigger fresh buying momentum.
Holding above 23,770 is likely to keep the broader market structure positive.
From a technical perspective, the Nifty continues to trade above the crucial 24,000 level and its key short-term moving averages, indicating that the broader trend remains positive. Investors are advised to maintain a stock-specific approach with a positive bias while closely monitoring global developments.
Indian equity markets ended last week on a positive note despite heightened volatility.
BSE Sensex gained 0.39 percent to close at 77,100.
Nifty 50 advanced 0.20 percent to settle at 24,056.
Bank Nifty outperformed, rising 0.90 percent to close at 58,177.10.
Among sectoral indices, pharma, realty, private banks and auto emerged as the top performers, while metals, PSU banks, media and IT witnessed profit booking.
The Nifty opened last week on a weak note at 24,013.10 and slipped to a weekly low of 23,784.90 before strong buying at lower levels lifted the index to a weekly high of 24,261.60 on Thursday. It eventually settled at 24,056. The sharp recovery highlighted the resilience of the broader market and continued investor interest in quality stocks.
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 remain supportive, while the formation of a Doji candlestick on the weekly chart suggests indecision and the possibility of near-term consolidation.
Support: 23,770
Resistance: 24,575
A decisive breakout above 24,575 could trigger fresh buying interest and extend the rally. Conversely, a sustained move below 23,770 may lead to profit booking and short-term consolidation.
Bank Nifty ended last week at 58,177.10, gaining 0.90 percent and continuing to outperform the broader market. The index remains comfortably above its key short-term moving averages on both the daily and weekly charts, while momentum indicators continue to signal strength.
The index formed a small bullish candlestick on the weekly chart and closed above the previous week's level, reinforcing the constructive outlook.
Support: 57,000
Resistance: 59,000
Next upside target: 60,400
A sustained move above 59,000 could strengthen bullish momentum and pave the way for further gains.
The Sensex closed the week at 77,100, gaining 0.39 percent and maintaining its positive bias. The index finished above the previous week's close, reinforcing the broader medium-term uptrend.
Technical indicators on both the daily and weekly charts continue to show improving momentum.
Support: 76,750
Upside targets: 78,000 and 79,750
As long as the Sensex remains above 76,750, the positive trend is expected to continue. However, a sustained break below this level could result in short-term consolidation before the next directional move.
(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 are advised to consult a qualified financial advisor and conduct their own due diligence before making any investment decisions.