Indian equity markets are expected to trade with a cautious to slightly negative bias in the coming week amid continued global uncertainties and rising crude oil prices. Weakness in global markets, along with sustained FII selling and a stronger US dollar, may keep sentiment subdued.
Key risks
Rising crude oil prices adding to inflationary pressure
Continued FII selling
Stronger US dollar impacting the rupee
Weak global market cues
From a technical perspective, the Nifty has slipped below the crucial 24,000 level, indicating short-term weakness.
Key levels to watch
Support: 23,500–23,150
Resistance: 24,300–24,600
Unless the index reclaims higher levels, the market may remain range-bound with a negative bias, though selective buying could emerge near support zones. Overall, the trend suggests consolidation with downside risk. Investors are advised to adopt a cautious approach and focus on buying on dips.
Indian equity markets ended the week on a negative note, with broad-based selling across key sectors.
Index performance
Sensex fell 2.33 percent to 76,664.21
Nifty 50 declined 1.90 percent to 23,897.90
Bank Nifty slipped 0.80 percent to 56,089.80
Sectoral laggards
IT
Auto
Private banks
Financial services
During the week, the Nifty opened at 24,391.50 and touched a high of 24,601.70 on Tuesday before facing selling pressure. It hit a low of 23,813.70 on Friday and closed near 23,897.90.
Drivers of decline
Profit booking after recent rally
Weak global cues
Rising crude oil prices
Continued FII selling
Stronger US dollar and weakening rupee
The correction appears driven by global uncertainties and profit booking rather than structural weakness.
The Nifty continues to trade above its short-term moving averages, indicating an underlying positive bias, although momentum indicators show weakness.
Key observations
Bearish weekly candle formation
Close near weekly low signals negative undertone
Break below 24,000 weakens short-term trend
Key levels
Support: 23,500–23,150
Resistance: 24,000 (crucial for momentum recovery)
Bank Nifty closed at 56,089.80, down 0.80 percent, indicating weakness in the banking segment.
Key observations
Moving averages support broader trend
Momentum indicators show mild weakness
Key levels
Support: 56,000
Below this level: risk of further correction
Upside: sustained move above resistance needed
The Sensex closed at 76,664.21, down 2.33 percent, with short-term structure turning weak.
Key observations
Slipped below key support of 77,000
Indicates a negative bias
Key levels
Support: 74,500
Resistance: 77,000
A move above 77,000 could help regain momentum, while failure may keep pressure intact.
The market has entered a short-term corrective phase after a strong rally, with global factors and profit booking weighing on sentiment. While the broader trend remains intact, near-term weakness may persist unless key resistance levels are reclaimed.
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 are advised to consult a qualified financial advisor and conduct their own due diligence before making any investment decisions.
