Mumbai: Indian equity benchmarks could extend their gains in the near term, with analysts projecting the Sensex towards 79,300–79,700 and the Nifty towards 25,200 if crucial resistance levels are decisively crossed.
The technical outlook remains constructive, although analysts cautioned that a breach of key support levels could trigger another round of profit booking.
Sensex Resistance
The Sensex maintained a positive technical structure during the week and closed comfortably above the 78,000 level.
Analysts expect the 78,800–79,000 zone to act as the immediate resistance area. A sustained move above this range could strengthen momentum and open the way for the index to test 79,300–79,700.
On the downside, the 77,300–77,200 range remains an important support zone, followed by the psychological 77,000 mark.
A decisive fall below 77,000 could weaken the improving chart structure and lead to renewed selling pressure.
Nifty Outlook
The Nifty also retained its broader bullish structure despite volatility and intermittent profit booking during the week.
The index continues to trade above key weekly exponential moving averages, which analysts said supports the medium-to-long-term trend.
However, the ongoing consolidation indicates that a clear breakout is still needed before the next leg of the rally.
The 24,900–25,000 range is expected to remain the immediate resistance zone. A sustained breakout above 25,000 could push the index towards 25,200.
Meanwhile, the 24,100–24,200 range is seen as the key support area.
Weekly Gains
Indian equities finished the week moderately higher despite volatility linked to the new Closing Auction Session framework for F&O stocks, the Reserve Bank of India’s monetary policy decision and geopolitical uncertainties.
The Sensex gained 0.52 percent during the week to settle at 78,499.17, while the Nifty advanced 0.77 per cent to 24,570.65.
Broader Strength
Broader indices outperformed the benchmarks, highlighting continued stock-specific buying.
The midcap index rose 0.81 percent during the week, while the smallcap index climbed 2.61 percent, indicating stronger investor appetite beyond heavyweight stocks.
