Mumbai: Indian equity benchmarks ended the truncated trading week on a subdued note, with investors closely watching key technical levels amid concerns over elevated crude oil prices and rising global bond yields.
Market experts believe the Sensex needs a sustained move above 74,600 to regain upward momentum, while the Nifty’s 23,000-23,100 zone remains a critical support area that could determine the market’s near-term direction.
Market analysts said investors continue to assess the impact of elevated energy prices on inflation and corporate profitability. Higher crude oil costs are seen as a double-edged risk, potentially increasing input costs for businesses while also putting pressure on consumer spending and economic growth.
From a technical perspective, analysts expect the Sensex to remain range-bound in the near term. “The broader support zone for the index is seen between 73,500 and 73,700,” analysts stated.
“A sustained move above 74,600 could pave the way for a recovery towards the 74,800-75,000 range. However, a fall below the 74,000 mark may trigger fresh selling pressure and increase downside risks,” market watchers noted.
For the Nifty, market participants are closely monitoring the 23,000-23,100 zone, which has emerged as a crucial support area after the index endured six consecutive weeks of decline.
Analysts warned that a decisive break below this range could lead to a deeper correction towards the 22,400-22,600 levels. “On the upside, immediate resistance is placed at 23,500–23,800, while support is seen around 23,100–22,950,” experts stated.
“Holding the support zone could keep the index within a broader consolidation range, whereas a decisive break below 22,950 may increase downside pressure,” market watchers mentioned.
Meanwhile, for the last week, the Sensex declined 0.65 per cent to settle at 74,294.46, while the Nifty slipped 0.22 per cent to close at 23,346.40. The weakness in benchmark indices came after a volatile trading period, although broader market indices, including midcap and smallcap stocks, managed to remain largely flat following their recent outperformance.
On Friday, benchmark indices delivered a mixed performance. The Sensex erased most of its intraday gains during the Closing Auction Session (CAS) and ended 19.63 points lower.
The index had surged as much as 413 points during the day, touching an intra-day high of 74,728.44 before losing momentum towards the close.
(IANS)
