Sensex may test 79,200, Nifty seen heading towards 24,850 next week: Analysts
Mumbai, Aug 2
After staging a strong comeback this week, the Indian equity benchmarks are expected to remain on a positive footing in the near term, with the Sensex likely to test the 79,000-79,200 zone and the Nifty 50 eyeing 24,850, provided key resistance levels are decisively crossed, market analysts said on Sunday.
The Indian stock market snapped its recent losing streak during the week as softer crude oil prices, easing geopolitical tensions, encouraging first-quarter FY27 earnings and renewed foreign institutional investor (FII) inflows lifted investor sentiment.
The decline in crude oil prices from recent highs eased concerns over imported inflation, corporate profitability and India's external account, providing further support to equities.
Backed by these favourable factors, the benchmark indices recovered a significant portion of the losses recorded in the previous week.
The Nifty surged 2.59 per cent to close at 24,383.60, while the Sensex gained 2.68 per cent to settle at 78,094.64. Both indices also registered their second consecutive monthly gain in July.
Commenting on the technical outlook for the Sensex, analysts said the benchmark mirrored the broader market recovery by reclaiming the 78,000 mark as improving earnings sentiment boosted investor confidence.
"The 78,300-78,500 zone remains the immediate resistance for the Sensex. A sustained breakout above this range could propel the index towards the 79,000-79,200 levels," an analyst stated.
"On the downside, the 77,700-77,500 zone is expected to provide immediate support, followed by the crucial psychological level of 77,000," a market expert mentioned.
Holding above these levels would keep the technical structure intact, while a breach below 77,000 could trigger fresh selling pressure,the market expert noted.
Sharing outlook on the Nifty, a market expert said the benchmark has reclaimed its 200-day exponential moving average (EMA), while the Relative Strength Index (RSI) has strengthened to 59, indicating improving momentum.
"The immediate resistance for the Nifty is placed in the 24,550-24,600 zone. A sustained move above this hurdle could pave the way for a rally towards the 24,850 mark," a market expert stated.
— IANS
Reader Comments
As a long-term investor, these short-term targets don't bother me much. My SIP is running smoothly. The quarterly earnings so far have been decent. Just hoping for stability for my mutual fund portfolio. 😊
Technical analysis is all well and good, but what about the retail investor who is sitting on losses from earlier this year? The market recovery is welcome, but it needs to be more broad-based. Not just the top 50 stocks.
The fall in crude oil prices is indeed a relief for our economy. Let's hope geopolitical tensions stay calm. Would be great to see Nifty cross 24,850 and then onwards to 25,000! 🚀
Finally some green on the screen after last week's red! But honestly, these analysts always give fancy targets. For the common person, it's important not to get swayed by every prediction. Do your own research people! 🙏
Good to see the Indian market reflecting global trends. The FII inflow has been a key driver. Let's see if the momentum sustains through August. Interesting times ahead for those invested in Nifty ETFs.
One has to appreciate that despite global uncertainties, Indian markets have shown resilience. The support at
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