The Indian equity market is expected to remain cautiously positive this week, supported by resilient domestic institutional buying, improving global sentiment, and expectations surrounding the quarter one earnings season. Investors will closely track corporate earnings, particularly management commentary on earnings growth, demand outlook, and margin trends, which could drive sector-specific movements.
From a technical perspective, the Nifty has immediate support around 23,770. As long as the index holds above this level, the broader medium-term uptrend is expected to remain intact. On the upside, 24,575 remains the key resistance level. A decisive breakout above this zone could trigger fresh buying momentum and pave the way for a move towards 25,200. Until then, the index is likely to trade in a broad consolidation range with a positive bias. Investors should focus on fundamentally strong stocks while keeping an eye on the earnings season, global developments, and institutional fund flows.
Indian equity markets ended the week on a subdued note amid profit booking at higher levels. The BSE Sensex declined 0.25 percent to close at 77,569.39, while the Nifty 50 slipped 0.30 percent to settle at 24,206.90. The Bank Nifty outperformed the broader market, gaining 0.20 percent to close at 58,045.90, supported by selective buying in banking stocks.
Among sectoral indices, Realty, IT, Metal, and PSU Banks emerged as the top performers, while Media, FMCG, and Auto were the major laggards.
During the week, the Nifty opened at 24,306.80 and climbed to a high of 24,530.90 before profit booking at higher levels dragged it to a low of 23,805.20. The index later recovered to close at 24,206.90.
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 despite the recent correction. Momentum indicators also continue to support the medium-term bullish outlook.
However, the formation of a bearish candlestick on the weekly chart, coupled with a close marginally below the previous week's level, points to mild profit booking and a cautious near-term outlook.
The 23,770 level remains the key short-term support. As long as the Nifty stays above this level, the broader positive trend is expected to remain intact. Immediate resistance is placed near 24,575. A decisive breakout above this level could trigger fresh buying momentum and pave the way for a rally towards 25,200. Until then, the index is likely to remain range-bound with intermittent consolidation.
Bank Nifty ended the week at 58,045.90, gaining 0.20 percent, reflecting resilience in banking stocks despite broader market volatility. The index continues to trade above its key short-term moving averages on both the daily and weekly charts, while momentum indicators suggest a neutral-to-positive bias, indicating the possibility of further consolidation.
Technically, the index formed a Doji candlestick on the weekly chart and closed marginally above the previous week's close, signalling indecision after the recent rally. Immediate resistance is placed around 58,700. A sustained close above this level would confirm a resumption of the bullish trend and could lead to further gains. Failure to break above 58,700 may keep the index in a consolidation phase. On the downside, 57,000 remains the key support level and is expected to provide a strong base for the medium-term uptrend.
The BSE Sensex closed the week at 77,569.39, down 0.25 percent, indicating mild profit booking after the recent rally.
Technical indicators on both the daily and weekly charts continue to suggest that the broader market trend remains positive. Immediate support is placed near 76,000. As long as the Sensex remains above this level, the index is likely to maintain its positive trajectory, with the potential to move towards 78,500 and 79,750 in the coming weeks. However, a sustained break below 76,000 could trigger a short-term correction before the broader uptrend resumes.
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 any investment decisions.
