Mumbai: Indian stock markets may remain range-bound and cautious in the near term, with key technical levels likely to decide the next direction for the Sensex and Nifty.
Analysts see 77,000-77,380 as an important support zone for the Sensex, while 77,720-78,000 could act as a major resistance area.
Sensex recovery hinges on 78,000
A sustained move above the 77,720-78,000 zone could improve the short-term outlook and open the door for a stronger recovery.
On the downside, holding above 77,000-77,380 would help the index maintain its current consolidation structure.
The Sensex continues to trade near its 50-day exponential moving average (EMA) but remains below the crucial 200-day EMA, indicating that the broader trend is still cautious.
The Relative Strength Index (RSI) stands near 49, suggesting weak momentum and no clear directional strength.
Nifty faces key test at 24,600
For the Nifty, analysts see immediate support around 24,000-23,800, followed by stronger support near 23,650.
Holding above 24,000 and the lower trendline of the technical triangle could indicate buying interest at lower levels.
On the upside, 24,400-24,600 remains the key resistance zone. A decisive move above 24,600 could strengthen recovery momentum and attract fresh buying.
However, a fall below 23,900 could increase selling pressure and weaken the near-term setup.
Markets fall for second straight week
Indian benchmarks ended the week cautiously as high crude oil prices, rising global bond yields and geopolitical tensions weighed on sentiment.
The Nifty fell around 0.47% for the week to 24,252, while the Sensex declined nearly 0.60% to 77,540.83. Both indices recorded their second consecutive weekly loss.
Broader markets performed relatively better. The SmallCap index gained around 1.2%, while the MidCap index ended marginally lower.
On Friday, the Sensex gained just three points to 77,540.83, while the Nifty rose 20 points, or 0.08%, to 24,252.
