Nifty eyes 24,000 breakout, Sensex may face resistance near 76,000 next week: Experts
Mumbai, May 24
Indian equity benchmark indices ended higher on Friday, with analysts on Sunday said that they are expecting the Nifty to test the crucial 24,000 resistance mark next week, while the Sensex may face hurdles near the 76,000 zone amid persistent global uncertainty and volatile crude oil prices.
Experts said the market is showing signs of gradual recovery, supported by gains in heavyweight banking stocks, although inflation concerns and geopolitical tensions continue to keep investors cautious.
"From a technical perspective, the RSI on the weekly timeframe stands at 42.69, reflecting a gradual recovery in momentum while still remaining in the neutral zone," an analyst stated.
"Overall, the price action suggests that the index is attempting to stabilize after recent volatility, with buying emerging at lower levels and traders closely monitoring key breakout zones for further directional cues," as per the analyst.
Technically, analysts see immediate resistance for the Nifty at 23,900 and 24,000 levels.
"On the downside, support is seen at 23,250 and 23,000. A breakdown below the 23,000 mark could trigger fresh selling pressure in the near term," a market expert mentioned.
On the Sensex outlook, analysts said the index continues to trade with a cautious undertone amid volatile global developments and persistent geopolitical concerns.
"Immediate resistance is placed around the 75,800-76,000 zone, while support is seen near the 74,600-74,400 region," an analyst stated.
Experts added that a decisive breakout on either side could determine the next major directional move for the broader market in the coming sessions.
"Considering the current market setup, traders are advised to remain disciplined and follow strict stop-loss strategies amid ongoing market volatility," an analyst mentioned.
Meanwhile, Indian equity benchmark indices ended higher on Friday, supported by strong buying in heavyweight banking stocks such as ICICI Bank, HDFC Bank, and Axis Bank.
However, analysts said the market continued to trade with caution amid rising crude oil prices, inflation concerns, and lingering geopolitical uncertainty.
— IANS
Reader Comments
RSI at 42.69 is still in the neutral zone, so this recovery is fragile. I'd wait for a decisive close above 24,000 before getting too optimistic. The global uncertainty from US interest rates and Middle East tensions is still very real. Better to be cautious than to chase this rally.
My father always says "slow and steady wins the race" - exactly what the market is doing right now. Banking stocks are the backbone of our economy and seeing ICICI and Axis Bank perform well gives me confidence. But I'm a bit worried about the support at 23,000 - if that breaks, it could be a bloodbath.
Technical analysis is great, but don't forget the fundamentals. Indian economy is growing at 7%+ while most of the world is struggling. Yes, inflation and geopolitics are concerns, but long-term investors should use these dips to accumulate quality stocks. Stop-loss is a must though - that advice is spot on.
I appreciate the analysis but wish they'd talk more about retail investors like us. We can't just dump lakhs into the market without proper guidance. The 75,800-76,000 resistance on Sensex is important but what about small-cap stocks? They're more volatile and many of us are stuck with losses from last month's correction.
Market is trying to find its footing after that big fall earlier this month. 24,000 is a mental barrier for Nifty. If it breaks, we could see a sharp rally. But if geopolitical tensions escalate (Ukraine, Middle East), all bets are off.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.