Sensex may test 79,200 on breakout, Nifty eyes move above 24,500: Analysts
Mumbai, July 19
Indian equity markets are expected to remain focused on key technical levels in the coming week, with analysts indicating that the Sensex could face immediate resistance in the 78,400-78,600 range, while the Nifty will need to decisively breach the 24,400-24,500 zone to extend its recent recovery.
In the previous week, the Indian equity markets closed on a strong note, extending their recovery despite persistent geopolitical tensions, elevated crude oil prices and continued uncertainty surrounding the global interest-rate outlook.
The benchmark indices posted healthy weekly gains, with the Nifty advancing around 0.53 per cent to close at 24,334.30, while the Sensex rose nearly 0.75 per cent to settle at 78,151.45. However, the broader market witnessed some profit booking after its recent rally, with both the Midcap and Smallcap indices ending the week marginally lower.
According to analysts, the Sensex has shown resilience after reclaiming key short-term levels and attracted steady buying interest through the final trading session of the week. They said the 78,400-78,600 zone is likely to act as the immediate resistance area.
"A sustained move above this range could strengthen bullish momentum and open the door for a rally towards the 79,000-79,200 levels," as per the analyst.
"On the downside, analysts expect the 77,600-77,300 zone to provide immediate support for the index, followed by the psychologically important 77,000 mark," a market expert mentioned.
Analysts further added that holding above these levels would help maintain the ongoing recovery trend, while a decisive break below 77,000 could trigger fresh profit booking and drag the index towards the 76,700-76,500 range.
For the Nifty, analysts said the index has once again approached the crucial 24,400-24,500 resistance zone, which coincides with a major horizontal supply area as well as the 100-week moving average near 24,490.
"On the upside, immediate resistance levels are placed at 24,700 and 24,800. On the downside, immediate support is placed at 24,000 and 23,800," a market expert stated.
— IANS
Reader Comments
Good to see markets recovering despite global uncertainties! But honestly, with crude oil still elevated and FII selling pressure, these resistances at 78,400-78,600 seem tough to crack. Better to book some profits and wait for Budget announcements.
I'm seeing heavy accumulation in banking stocks. If Nifty breaks 24,500 decisively, we could see 25,000 sooner than anyone expects. But the 77,000 support on Sensex is crucial - below that, it's a different ballgame entirely. 🎯
Analysts keep talking about these levels but the real story is the broader market weakness - Midcap and Smallcap indices ended lower. That's a warning signal. I'm staying away from momentum stocks and focusing only on largecaps with strong earnings.
As someone who moved to India for work, I'm impressed by the resilience of Indian markets. The domestic institutional flows are really supporting the market. But global headwinds from US interest rates can't be ignored. Will watch 24,400-24,500 on Nifty closely next week.
All this technical analysis is fine but what about retail investors who lost money in the last dip? Markets are not for everyone. I hope people don't get greedy and end up buying at 79,200 only to see a sharp correction. Patience is key! 🙏
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