Sensex may face resistance at 76,300, Nifty support seen at 23,600: Analysts
Mumbai, July 26
The benchmark equity indices are likely to remain under pressure in the coming week, with the Sensex facing immediate resistance around the 76,300 level and the Nifty expected to find crucial support near 23,600 after both indices extended losses in a volatile trading week marked by rising crude oil prices, geopolitical tensions and weak banking stocks, analysts said on Sunday.
According to experts, the Sensex surrendered the gains made in the previous week and slipped below the psychologically important 77,000 mark as geopolitical concerns and earnings-related pressures weighed on investor confidence.
"From a technical perspective, the 76,300 zone now acts as immediate resistance. On the downside, the 75,800-75,700 zone is likely to offer immediate support; a break below could open the door towards 75,500-75,400," a market expert mentioned.
For the Nifty, analysts said the index slipped below the lower end of its month-long consolidation band of 23,800-24,400 and tested support near the rising trendline around the 23,600 level before ending the week at 23,767.45.
"A decisive breach below the 23,600 support zone could accelerate the correction towards the previous swing low of 23,100. On the upside, the 24,000-24,100 region is expected to act as the first resistance, followed by a stronger hurdle around the 24,400 mark," a market expert mentioned.
Meanwhile, in the previous week, the Indian stock market witnessed heightened volatility as investors turned cautious amid a spike in global crude oil prices and renewed geopolitical uncertainties.
Mixed first-quarter earnings from banking companies further weighed on sentiment, while a weakening rupee and a broader risk-off mood restricted buying despite resilient domestic macroeconomic indicators and stock-specific opportunities emerging during the ongoing earnings season.
The Sensex fell 2.68 per cent over the week to settle at 76,059.77, while the Nifty declined 2.33 per cent to close at 23,767.45.
— IANS
Reader Comments
As someone who's been investing in Indian markets for five years now, I think the analysts are spot on. The global headwinds are real - crude oil prices and geopolitical tensions are affecting everything. That said, India's fundamentals remain stronger than most emerging markets. Good time for disciplined investors to accumulate quality stocks.
Honestly, it's frustrating to see the market fall just when I thought this quarter's earnings would be good. But I've learned not to panic sell - markets recover eventually. Right now, I'm looking at pharma and IT stocks which might be less affected by these banking issues. What do others think?
I keep hearing about 76,300 and 23,600 levels - but these technical analyses only help if you have the patience to wait for the right entry. Many retail investors end up buying at the 'support' and selling at 'resistance' but get wiped out in between. 😅
One thing the analysts haven't mentioned is the FII (Foreign Institutional Investor) selling pattern. They've been taking money out for weeks now, and that's a big reason for the decline. Until global uncertainty subsides or India-specific catalysts emerge, we might see more volatility. My advice: avoid margin trading for now. 🙏
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