Indian stock market: Indian equities witnessed a volatile week as investors grappled with elevated energy prices, turbulence in global bond markets and ongoing geopolitical uncertainty.
The Nifty 50 remained under pressure through Wednesday, marking its longest losing streak in nearly 11 months with seven consecutive sessions of declines. The index lost around 2.1% during this period as investors turned cautious amid rising crude oil prices and higher global borrowing costs.
On a weekly basis, the Nifty slipped around 0.47% to close at 24,252, while the Sensex declined nearly 0.60% to finish at 77,540.83.
“The Indian equity benchmarks ended the week on a mildly negative note, with the Nifty 50 declining 0.67% to close at 24,252, while the Bank Nifty remained largely flat, gaining 0.05% and settling at 57,761. Sectoral performance remained selective, with Metals, Financials and Realty emerging as the key outperforming sectors during the week. From a macro perspective, geopolitical uncertainties remain elevated, particularly around the US–Iran and broader Middle East developments, while movements in crude oil prices and global market cues continue to remain important factors for near-term market direction,” 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 had entered an overbought zone following its recent sharp rally, increasing the probability of profit booking and sideways consolidation. This view has largely played out, with the index continuing to face difficulty sustaining above the 24,500–24,600 resistance zone, which remains a crucial technical barrier as it coincides with the 200-day EMA. Despite the recent consolidation, the broader technical structure remains constructive.
Dongre further noted that the index continues to hold its long-term weekly trendline support in the 23,700–23,800 zone, while the monthly chart continues to maintain a healthy higher-high and higher-low structure, indicating that the primary medium- to long-term uptrend remains intact.
“From a trading perspective, we continue to favour a buy-on-dips strategy, as meaningful declines are likely to attract buying interest as long as the broader support structure remains intact. The immediate support zone is placed around 23,900–24,000, while the broader medium-term support remains in the 23,500–23,600 zone. On the upside, 24,500–24,600 continues to act as the immediate resistance area. A decisive breakout and sustained close above 24,800 would be a significant technical trigger and could potentially accelerate the next leg of the broader uptrend,” Dongre added.
Bank Nifty
On the Bank Nifty outlook, Dongre further added that the index remained largely range-bound during the week and closed marginally higher at 57,761. Technically, the index continues to maintain its constructive medium-term structure and remains above its important long-term EMA support around 56,300.
“The 57,000 level continues to act as an important psychological support, while the broader support zone is placed around 56,000–56,300. On the upside, the 58,000–58,500 resistance zone remains crucial. A decisive and sustained breakout above 58,500 would strengthen the bullish setup and could open the way towards the 60,000 mark. Until such a breakout occurs, the Bank Nifty is likely to remain in a consolidation phase,” he said.
Dongre’s market outlook
On the overall market outlook, the stock market expert said that market appears to be undergoing a healthy phase of digestion following the earlier rally rather than witnessing a structural trend reversal. Hence, the buy-on-dips approach remains preferable, while traders should closely monitor 24,000 and 24,500 on the Nifty and 56,000 and 58,500 on the Bank Nifty.
“Overall, both the Nifty and Bank Nifty continue to maintain a positive medium-term technical structure, despite the recent profit booking and sideways consolidation. A sustained breakout above the respective resistance levels would provide confirmation of renewed momentum and potentially signal the beginning of the next leg of the broader uptrend,” said Dongre.
Weekly stocks to buy or sell
JSW Steel: Buy at ₹1285-1295, target price of ₹1345, stop loss of ₹1265.
Computer Age Management Services: Buy at ₹450-455, target price of ₹470, stop loss of ₹435.
RVNL: Buy at ₹225-228, target price of ₹240, stop loss of ₹218.
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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