Nifty Faces Strong Resistance At 24,500, Sensex May Climb Towards 79,000 If Bullish Momentum Continues

Mumbai: The Indian stock market closed the holiday-shortened week with gains, extending its positive momentum.

The benchmark indices rose for the third time in four trading sessions, while the Nifty remained comfortably above the important 24,000 level.

Analysts believe the market outlook is still positive, but fresh buying from investors will be needed for the next phase of the rally.

Sensex may move towards 79,000

According to market experts, the Sensex has recovered well from recent lows and continues to show strength.

The index is currently facing resistance in the 77,500-77,700 range.

If the Sensex manages to stay above this level for a sustained period, analysts expect the rally to continue towards 78,000 and even 79,000.

On the downside, the 77,000-76,900 zone is seen as immediate support. Holding above this level will be important to maintain the current upward trend.

Nifty faces hurdle at 24,500

The Nifty started the week on a strong note but saw some profit booking during the first few sessions.

The index slipped to an intra-day low of 23,784.95 before recovering and closing above 24,000.

Analysts say the immediate resistance levels for the Nifty are 24,400 and 24,500.

A strong move above these levels could attract fresh buying and push the index higher.

If the market falls, support is expected around 23,900 and 23,800.

Crude oil prices bring relief

One of the biggest positive factors for the market was the decline in crude oil prices.

The easing of tensions in West Asia and the return of normal tanker movement through the Strait of Hormuz helped Brent crude fall back to levels seen before the recent conflict.

Lower crude oil prices reduce concerns about imported inflation, India's current account deficit and higher costs for companies.

This has improved overall market sentiment.

Benchmark indices post weekly gains

During the week, the Sensex gained 0.39 per cent to close at 77,100.47.

The Nifty also ended in positive territory, rising 0.18 per cent to finish at 24,056.

Analysts believe the technical outlook remains favourable. If the benchmark indices successfully cross their key resistance levels, the market could see another round of gains in the coming sessions.