Indian stock market: The Indian stock market extended its losing streak for a fifth straight session on Friday, July 24, as rising crude oil prices amid the US-Iran conflict continued to dampen investor sentiment.
The Sensex fell 332 points, or 0.43%, to close at 76,059.77, while the Nifty 50 declined 102 points, or 0.43%, to settle at 23,767.45. Broader markets also ended lower, with the Nifty Midcap 100 index slipping 0.10% and the Nifty Smallcap 100 index losing 0.32%.
“The Indian equity benchmarks ended the week sharply lower amid broad-based selling pressure, primarily driven by escalating geopolitical tensions in the Middle East, a sharp surge in crude oil prices, and sustained foreign institutional investor (FII) outflows. The Nifty 50 closed at 23,767, registering a weekly decline of 2.23%, while the Bank Nifty ended the week at 56,693, down 3.12%. Despite the weakness in the benchmark indices, sectoral performance remained selective, with the Chemical, Metal, and FMCG sectors outperforming and closing in positive territory,” said Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi.
Ganesh Dongre’s market outlook for next week
Nifty 50
According to Dongre, the Nifty 50 closed marginally below the crucial 23,800 support level. During the week, the index once again failed to surpass the 24,500–24,600 resistance zone, which coincides with the 200-day Exponential Moving Average (EMA) and continues to act as a strong technical hurdle. However, the broader market structure remains constructive.
“On the weekly chart, the index continues to hold the long-term trendline support in the 23,700–23,800 zone, while the monthly chart still reflects a healthy higher-low formation, indicating that the primary uptrend remains intact.
Looking ahead, the upcoming week will be significant as the monthly derivatives expiry could lead to increased volatility and possible short covering, particularly if the index manages to hold above key support levels. We continue to recommend a buy-on-dips strategy, as the overall technical structure remains positive despite the recent correction. The Nifty is expected to regain the 23,800–24,300 range during the week, while the 23,500–23,600 zone will act as an important suppor area. Over the medium term, a decisive breakout and sustained close above 24,600 would serve as a major technical trigger, potentially accelerating the next leg of the rally towards the 25,000 mark,” said Dongre.
Bank Nifty
On the Bank Nifty outlook, Dongre further said that the index witnessed broad-based profit booking during the week, declining by nearly 3% and closing at 56,693, exactly around its 200-day EMA. The index continues to hold this crucial support, reinforcing a constructive medium-term outlook.
“A decisive and sustained breakout above the 58,000–58,500 resistance zone is essential to attract fresh buying interest and pave the way for a move towards the 60,000 mark. Until such a breakout occurs, the index is likely to remain in a consolidation phase. Immediate support is placed near the 56,000 level, which coincides with the 200-day EMA and is expected to provide a strong cushion against further downside. Overall, the technical structure of the Bank Nifty remains positive, and as long as it sustains above its key support levels, the broader trend is expected to retain a gradual upward bias,” he said.
Weekly stocks to buy or sell
Jindal Steel: Buy at ₹1040, target price of ₹1100, stop loss of ₹1000.
Wipro: Buy at ₹175, target price of ₹195, stop loss of ₹165.
Lodha Developers: Buy at ₹1145, target price of ₹1190, stop loss of ₹1120.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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