New Delhi, Sep 6 (IANS) Indian equity benchmarks are likely to remain in a cautious trading zone in the coming week, with the Sensex facing resistance around 77,000–77,500 and a stronger hurdle at 78,000, while the Nifty faces resistance in the 24,000–24,200 range, analysts said on Sunday.
On the downside, analysts see 23,800–23,600 as an important support zone for the Nifty and warn that a sustained break below these levels could intensify selling pressure.
Indian equity markets ended the week on a cautious note, extending their corrective phase as elevated crude oil prices, renewed geopolitical tensions and uncertainty over the global interest-rate outlook weighed on investor sentiment.
Although the benchmark indices recovered on Friday and snapped a four-session losing streak, the gains remained limited amid continued foreign investor selling and concerns over higher energy costs.
On Friday, the 30-share Sensex gained 362.57 points, or 0.48 per cent, to close at 76,515.43. Twenty of its constituents ended in positive territory, while 10 stocks declined. The index surged as much as 730.28 points, or 0.95 per cent, during the session to hit an intra-day high of 76,883.14.
The Nifty also recovered, rising 24.25 points, or 0.10 per cent, to finish at 23,897.70. The index crossed the 24,000 mark during the session and touched an intraday high of 24,005.75. However, it gave up most of its gains during the newly introduced Closing Auction Session and ended with only a marginal rise.
According to the experts, the 77,000–77,500 zone is likely to act as an immediate resistance for the Sensex, while the 77,700–78,000 range remains a key hurdle.
“A decisive and sustained move above 78,000 could strengthen the recovery and open the way towards 78,500–78,800,” a market expert stated.
“On the downside, the Sensex’s recent weakness means investors will continue to watch its immediate support levels closely. A failure to sustain buying momentum near the current levels could keep the benchmark within its broader corrective and consolidation phase,” an analyst mentioned.
For the Nifty, analysts said 23,800 remains an immediate and crucial support level. Holding above this zone would be important to prevent further deterioration, while a decisive break below 23,800 could increase selling pressure and drag the index towards 23,600.
“The 24,000–24,200 band is likely to remain a key resistance area, and sustained trading below 24,000 could keep selling pressure intact,” a market expert noted.
–IANS
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