Mumbai, May 31 (IANS) Indian benchmark indices Sensex and Nifty may continue to witness pressure and heightened volatility in the coming week unless they decisively reclaim crucial resistance levels, market experts said on Sunday.
Analysts said the MSCI index rebalancing likely amplified volatility during the final 30 minutes of trading, contributing to the steep late-session decline.
Commenting on the technical outlook, experts said the Sensex continues to trade with a negative undertone as investor sentiment remains cautious and buying interest at higher levels stays weak.
“Technically, immediate resistance is placed near the 75,800–76,000 zone, while the broader 76,500–76,700 range remains a major resistance and supply area,” an analyst said.
“On the downside, immediate support is seen in the 74,500–74,200 region. Holding above this zone will be crucial to prevent further weakness, while a decisive break below it could accelerate downside pressure and expose the index to lower support levels,” an analyst added.
Meanwhile, commenting on Nifty technical outlook, experts said the Nifty continues to trade below its 20-week and 50-week exponential moving averages (EMAs) — indicating a lack of strong bullish momentum, although support from the broader long-term trendline remains intact.
“On the upside, immediate resistance levels are placed at 23,900 and 24,100. On the downside, support is seen at 23,400 and 23,200,” an analyst stated.
“A decisive breakdown below the 23,200 zone could invite fresh selling pressure, whereas sustained trade above 24,100 may improve sentiment and support a recovery move,” a market expert noted.
Meanwhile, the market ended the last trading session with steep losses following heavy selling in the final hour of trade, amid uncertainty surrounding a possible US-Iran agreement and volatility linked to the MSCI rebalancing that became effective at the close of trading on Friday.
Throughout most of the trading session, the Sensex and Nifty moved within a narrow range as investors largely stayed cautious on the sidelines.
However, sentiment weakened sharply toward the close, triggering intense selling pressure across sectors.
The 30-share Sensex plunged 1,092 points, or 1.44 per cent, to settle at 74,775.74 after slipping nearly 1,300 points during intra-day trade.
The Nifty also declined sharply, ending 359 points, or 1.50 per cent, lower at 23,547.75 after touching an intra-day low of 23,485.
–IANS
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