Mumbai: Indian stock markets ended higher on Friday, snapping an eight-week losing streak, but analysts warned that the recovery could face resistance unless the Nifty and Sensex cross crucial technical levels.
The Nifty gained 1.3 per cent to close at 22,520.45, while the Sensex advanced 1.23 per cent to settle at 72,472.33. Information technology stocks led the rally, supported by encouraging quarterly earnings and improving international business trends.
Markets End Eight-Week Losing Streak
For the week, the Nifty rose 0.44 percent and the Sensex gained 0.78 per cent, ending eight consecutive weeks of losses.
The recovery followed a steep correction, during which the Nifty declined 8.7 per cent and the Sensex slipped 8.4 per cent.
Analysts believe the rebound signals early stabilisation, although stronger buying and broader participation are necessary to confirm a sustained recovery.
Nifty Faces Crucial 22,800 Resistance
Market experts identified 22,750-22,800 as the immediate resistance zone for the Nifty, while 22,200-22,250 remains an important support area.
A decisive breakout above 22,800 could push the index towards 23,100 and eventually 23,300.
However, failure to hold above 22,200 could revive selling pressure and drag the benchmark towards 22,000-21,700.
Analysts cautioned that one positive week does not necessarily indicate a complete reversal of the prevailing downtrend.
Sensex Eyes 74,000-74,600 Levels
The Sensex also displayed signs of recovery but formed a High Wave candle on its weekly chart, indicating uncertainty among investors.
Experts identified 73,000-73,200 as immediate resistance. A sustained breakout above 73,200 could lift the index towards 74,000 and subsequently 74,600.
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On the downside, 71,200-71,000 remains a critical support zone. A breach below 71,000 could trigger renewed selling.
Volatility May Continue
Analysts expect market volatility to persist until both benchmarks cross their resistance levels.
Sustained institutional buying, positive corporate earnings and broader market participation will remain crucial for extending the recovery.
